Justice Department Announces Fair Lending Initiative

11 months ago 145

By Associated Press
October 22, 2021

Attorney General Merrick Garland said the DOJ is addressing modern-day redlining practices by making much robust usage of just lending authorities.

The Justice Department announced Friday a cross-government effort to analyse and prosecute redlining, the signifier of banks discriminating against radical minorities oregon definite neighborhoods. It is the archetypal large enlargement of redlining investigations since the Obama administration.

As portion of the effort, the Justice Department arsenic good arsenic the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency besides announced a caller lawsuit against Trustmark Bank for its attraction of Black and Hispanic borrowers successful Memphis, Tennessee.

Despite a fractional period of laws designed to combat redlining, the racist signifier continues crossed the state and the semipermanent effects are inactive felt to this day. The mean nett worthy of a Black household is simply a fraction of a emblematic achromatic household, and homes recovered successful historically redlined neighborhoods are inactive worthy little than homes recovered successful non-redlined communities.

“Lending favoritism runs antagonistic to cardinal promises of our economical system,” said Attorney General Merrick Garland, successful prepared remarks. “When radical are denied recognition simply due to the fact that of their contention oregon nationalist origin, their quality to stock successful our nation’s prosperity is each but eliminated.”

Garland said the section is presently investigating respective redlining cases and expects it volition beryllium opening much successful the coming months.

The Justice Department effort besides includes the CFPB and OCC, 2 of the nation's fiscal regulators that are often astir progressive with owe lending. It volition besides impact U.S. attorneys' offices with section acquisition successful these neighborhoods arsenic good arsenic authorities attorneys general.

The section volition besides beryllium expanding its investigation of slope lending activities to look for accustomed behaviour patterns.

Additional reporting by The Associated Press.