Garland said the Justice Department is trying to vigorously enforce fair lending laws and ensure that lenders "provide equal opportunity for every American to obtain credit. The bank will also improve training, spend at least $1.75 million on advertising, community programs and financial education, and set up a fair lending oversight committee. Under a five-year consent order, City National will commit at least $29.5 million, with the goal of making mortgage and home improvement loans more widely available in majority-Black and Hispanic neighborhoods. The complaint said just 7% of City National's residential mortgage loans in the region went to residents of majority-Black and Hispanic census tracts, compared with 44% of loans by its peers, and that more loans in those tracts went to white people. The Justice Department accused City National of violating the federal Fair Housing Act by having "avoided" serving majority-Black and majority-Hispanic neighborhoods in the Los Angeles area between 20.Ĭity National, the largest bank based in Los Angeles, was accused of letting staff generate loan applications largely from its disproportionately white customer base instead of reaching out to Black and Hispanic people, and ignoring internal reports that suggested shortcomings in its fair lending practices. Thursday's settlement was part of Attorney General Merrick Garland's Combatting Redlining Initiative, launched in Oct. Department of Justice's largest settlement over illegal redlining. Jan 12 (Reuters) - City National Bank, a unit of Royal Bank of Canada (RY.TO), agreed to commit more than $31 million to boost lending to Black and Hispanic home buyers in the Los Angeles area, in the U.S.
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