Bank to pay $31M redlining settlement, DOJ’s largest ever

NEW YORK — The Justice Department accused Los Angeles-based City National Bank on Thursday of discrimination by refusing to underwrite mortgages in predominately Black and Latino communities, requiring the bank to pay more than $31 million in the largest redlining settlement in department history. The Justice Department says that between 2017 and 2020, City National avoided marketing and underwriting mortgages in majority Black and Latino neighborhoods in Los Angeles County. The Biden task force includes the Justice Department as well as bank regulators like the Comptroller of the Currency and the Consumer Financial Protection Bureau, and is focused not only on explicit forms of redlining but also cases where computer algorithms may cause banks to discriminate against Black and Latino borrowers. In a statement, City National said it disagreed with the Justice Department’s allegations, but that it will “nonetheless support the DOJ in its efforts to ensure equal access to credit for all consumers, regardless of race.” The Justice Department said City National cooperated as part of the redlining investigation and is working to resolve its issues in other markets, as well.