February 6, 2023 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

DOJ Secures Over $31 Million from City National Bank to Address Lending Redlining Claims

Represents the largest redlining settlement under Attorney General Merrick B. Garland’s Combating Redlining Initiative

The Justice Department has announced a settlement to resolve claims that City National Bank was engaging in discriminatory loan practices, known as “redlining”, within Los Angeles County. This resolution will grant more than $31 million in relief to those affected and their communities. 

The agreement, part of the Department’s nationwide Combating Redlining Initiative that Attorney General Merrick B. Garland launched in October 2021, represents the largest redlining settlement in its history. City National is the largest bank headquartered in Los Angeles and is among the fifty largest banks in the United States. 

A complaint was brought forward in federal court that City National had unlawfully avoided providing mortgage loan services from 2017 to 2020 in neighborhoods predominantly inhabited by Black and Hispanic people in Los Angeles County. This practice of lenders denying credit due to neighborhood demographics is commonly known as “redlining”, which is prohibited by law based on race, color, or national origin.

According to the complaint, other banks reportedly received more than six times as many applications in majority-Black and Hispanic areas in Los Angeles County than City National did over a given period. During the same timeframe, City National opened or acquired 11 branches – yet just one was located in a majority-Black or Hispanic area. Moreover, no staff were appointed by City National to arrange mortgages at this branch, unlike in its branches located in predominantly white areas.

“In the words of Dr. Martin Luther King Jr., the issue of fair housing is a ‘moral issue.’ Thus, ending redlining is a critical step to closing the widening gaps in homeownership and wealth, especially in a city as large and diverse as Los Angeles,” said United States Attorney Martin Estrada. “It is unacceptable that redlining persists into the 21st century, and this case demonstrates our commitment to combat redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending, and meeting the credit needs in Los Angeles.”

City National Bank has agreed, subject to court approval and filed in a U.S. District Court in Los Angeles, to invest $29.5 million into a loan subsidy fund for majority-Black and Hispanic neighborhoods within LA County, plus $500,000 for targeted advertising/outreach, $500,000 for a consumer financial education program and $750,000 for developing community partnerships to increase access to residential mortgage credit.

They will also open one new branch in such a neighborhood, assign four mortgage loan officers and appoint a Community Lending Manager to oversee lending development in those areas; as well as conduct research on the needs of financial services regarding majority-Black and Hispanic census tracts.

City National worked in tandem with the Department to address redlining complaints. As part of the resolution, City National announced that it is actively working to extend its lending services across the country, increasing credit access for communities of color. This would include creating residential mortgage programs covering areas such as New York, Georgia, Nevada and Tennessee; as well as a small business lending program to assist underserved business owners.

Related Posts

Property Transfer Tax Measure ULA Heads to Court as Landlords and Taxpayers Association File Lawsuit Against LA City

February 3, 2023

February 3, 2023

Measure is intended to fund affordable housing and tenant assistance programs through a property transfer tax By Dolores Quintana Measure...

A Luxurious Mar Vista Home Has Hit the Market for $3,395,000

February 3, 2023

February 3, 2023

Ashwood Avenue home offers 3080 square feet of living space  A stunning four-bedroom, five-bathroom home has hit the market in...

Ratkovich Company and JPMorgan Secure $41 Million Loan for Culver City Office Development

February 3, 2023

February 3, 2023

Project is located near the intersection of Jefferson and Obama Boulevards. By Dolores Quintana JP Morgan and the Ratkovich Company...

Culver City Approves Construction of 165,000-Square-Foot Office Building on Watseka Avenue

February 3, 2023

February 3, 2023

Four-story development set to be complete in 2025 or 2026 The City of Culver has given the green light to...

Chef Jason Neroni Introduces Best Bet Pizza to Washington Boulevard

February 2, 2023

February 2, 2023

Best Bet to open in former A-Frame space on Washington Boulevard By Dolores Quintana It’s official, chef Jason Neroni will...

Free Bahn Mi Sandwiches for Mar Vista Restaurant’s 4 Year Anniversary

February 1, 2023

February 1, 2023

My Lai party to feature free Banh Mi Sandwiches, gift card prizes, and other goodies!   By Dolores Quintana On February...

California’s Ambitious Fast-Food Law Heads to Statewide Referendum for Final Verdict

February 1, 2023

February 1, 2023

AB 257 would create a board of 11 appointees to negotiate on behalf of fast food workers in California Last...

Mayor Bass Launch New Initiative to House Homeless at Culver Boulevard Encampment

February 1, 2023

February 1, 2023

Two Inside Safe initiatives launched in South LA and Westside By Sam Catanzaro City officials have announced a new effort...

Girl Scouts Return to Los Angeles With Delicious New Cookie!

January 31, 2023

January 31, 2023

Cookie lovers throughout Greater Los Angeles can now support local Girl Scout entrepreneurs by ordering from the iconic lineup Girl...

Boris Allakhverdyan, Ben Hong and Talon Smith Unite in Santa Monica for Special Performance of Brahms’ Trio Op. 114

January 31, 2023

January 31, 2023

Concert will take place on Sunday, February 5 The world-renowned Los Angeles Philharmonic’s Principal Clarinet Boris Allakhverdyan and Associate Principal...

70 Culver High AVPA Students Descend on CETA for High School Theater Arts Festival

January 31, 2023

January 31, 2023

CCHS Senior Ginger Anderson-Willis took home first place in the “Trailer” category 70 Culver City High School students from the...

Metro’s Choice for Purple Line Muralist Sparks Veteran Concern

January 31, 2023

January 31, 2023

Veterans concerned over disturbing painting by commissioned metro muralist at the purple line stop on the West L.A VA Soldiers...

Mayor Karen Bass Makes Moves in her New Administration to Combat Homelessness

January 31, 2023

January 31, 2023

Mayor appoints three Deputy Mayors and three Directors last week Mayor Karen Bass has wasted no time in the transition...

CCUSD Board Shines Spotlight on Elementary Schools, Reacts to Monterey Park Shooting

January 31, 2023

January 31, 2023

Board of Education celebrated the collective efforts of their elementary schools by recognizing the Five Pillars of Supporting Student Need...

TikTok Sparks Surge in Kia and Hyundai Thefts in Los Angeles

January 31, 2023

January 31, 2023

Social media platforms exacerbate vehicle thefts through security flaws Kia and Hyundai vehicles have become a major target for car...