February 29, 2024 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

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

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

(Video) Restaurants Replace Glass Front Doors After Late Night Robbery Spree in Del Ray

February 28, 2024

February 28, 2024

Seven restaurants and small businesses in Del Rey and Venice, including Nick the Greek and Dudley Market, were robbed. Council...

The Yo! Venice Interview: Ericka Wiley Makes Her Case for a Seat on the L.A. Bench

February 27, 2024

February 27, 2024

Public Defender promotes progressive Democratic Party, labor endorsements in this competitive three-way race come March 5 By Nick Antonicello Most...

Venice Shorts: Marina Freeway Cleaned and Cleared

February 27, 2024

February 27, 2024

After reporting on a string of RV’s and campers at this site in Del Rey, LA city officials removed all...

Overnight Burglaries Rattle Del Rey, Venice: LAPD Investigates String of Incidents

February 27, 2024

February 27, 2024

Seven Businesses Targeted, Including Nick the Greek and Dudley Market The Los Angeles Police Department officers are investigating a series...

Downtown Wellness Center Bridges Gap Between Psychedelics and Meditation

February 27, 2024

February 27, 2024

The Center Has Partnered With Local Agencies and Gave Free Sessions to Around 500 Veterans in Two Years By Zach...

Venice Shorts: “Grom” Day Coming This Sunday

February 26, 2024

February 26, 2024

Registration runs through Wednesday, February 28  By Nick Antonicello  The Venice Surfing Association (VSA) will be hosting it’s annual Grom...

Iconic Venice Beach Sculpture and Landmark to be Removed, Returned to Artist’s Property

February 26, 2024

February 26, 2024

Since the Money, Effort or Desire to Purchase the Piece Appears to Not Be There, the Artist Wants It Back...

Ocean Park Triplex Hits Market Again After 36 Years at $1.6M

February 26, 2024

February 26, 2024

The property presents an enticing opportunity for owner-users or developers For the first time in over 36 years, this triplex,...

Cher Drops Price of Her Seven-Bedroom Malibu Mansion by $10M

February 26, 2024

February 26, 2024

The legendary singer bought the parcel for $2.95 million over 30 years ago By Zach Armstrong Music icon Cher has...

Multi-Family Property in Mar Vista Goes for Under a Million

February 25, 2024

February 25, 2024

Both units are presently tenant-occupied and sold as-is Situated in the sought-after Mar Vista neighborhood, this duplex comprises two distinctive...

Blue Bus Seeks Input on How to Improve Service

February 23, 2024

February 23, 2024

Through Brighter Blue, Big Blue Bus Aims to Develop a Strategic Plan for Implementing System Enhancements Over Five Years Santa...

Venice Shorts: Rain, Rain Go Away! But RVs Stay For Another Day

February 22, 2024

February 22, 2024

RV Situation remains the same up and down Indiana Avenue with new vehicles spilling onto Fourth Avenue.  By Nick Antonicello ...

Popular Coffee & Tea Franchise Opens Another Santa Monica Spot

February 22, 2024

February 22, 2024

The News Comes Four Months After the Announcement of Its Third Santa Monica Outpost By Zach Armstrong Coffee Bean &...

Culinary Bliss Awaits: Los Angeles Wine & Food Festival Debuts in Santa Monica

February 21, 2024

February 21, 2024

Santa Monica Pier Welcomes the Inaugural Los Angeles Wine & Food Festival Santa Monica is set to become the birthplace...

Amid Delays, House of Pies Sets New Opening Date for Venice Spot

February 21, 2024

February 21, 2024

For About a Year, the Development’s Construction Has Seemingly Been Inactive By Zach Armstrong House of Pies, a popular L.A....