23 October 2021

REDLINING NEVER WENT AWAY

Trustmark National Bank will pay $5 million in fines to federal regulators to settle allegations it actively avoided offering and marketing home loans to Black and Hispanic customers, federal officials announced Friday.

October 22, 2021

Attorney General Merrick Garland Remarks on Redlining and Lending Discrimination

Attorney General Merrick Garland and Assistant Attorney General Kristen Clarke deliver remarks at the Justice Department in Washington, D.C. on a new initiative to combat redlining and lending discrimination

The Justice Department, Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) announced a joint consent order with Trustmark, accusing the bank of a pattern of “redlining” in the Memphis, Tenn., region.

Federal officials alleged that between 2014 and 2018, Trustmark

(1) avoided locating branches in majority-Black and Hispanic communities,

(2) failed to assign a single loan office to majority-Black and Hispanic communities,

(3) failed to monitor its compliance with fair lending laws and

(4) discouraged home loan applications from Black and Hispanic borrowers.

> The consent order with Trustmark is the second major redlining penalty issued under the Biden administration.

> The parent company of Cadence Bank agreed in August to pay roughly $8.5 million in fines and community investments to settle charges of lending discrimination brought by the Justice Department and a federal bank regulator.

October 22, 2021 - 04:29 PM EDT

Trustmark Bank to pay $5 million 'redlining' fine

By Sylvan Lane

Sylvan Lane:

". . .Redlining covers a broad range of techniques used by banks and lenders to avoid offering mortgage loans to non-white customers. While redlining historically involved explicit bans on loan offers to customers from majority Black or Hispanic neighborhoods, it can also include a failure to broadly market mortgage loans or make them easily available in those areas.

> “Lending discrimination runs counter to fundamental promises of our economic system. When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated,” said Attorney General Merrick Garland.

> "Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities,” he continued.

> "We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”

- While 50 percent of census tracts in the Memphis area are majority-Black and Hispanic, only four of Trustmark’s 25 branches were located in majority-Black and Hispanic communities, the complaint alleged.

- Trustmark also allegedly did not assign any mortgage loan officers to its four branches in majority-Black and Hispanic communities, ensure broad access to home loans in those areas, nor advertise mortgages in those areas.

- Trustmark’s peer banks in the Memphis area allegedly received 2.5 times as many mortgage applications from majority-Black and Hispanic communities, which federal officials cited as proof of the company’s discouraging actions.

“Trustmark purposely excluded and discriminated against Black and Hispanic communities” said CFPB Director Rohit Chopra.

“The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms.”

Under the consent order, Trustmark will pay $5 million to settle allegations it violated the Fair Housing Act and Equal Credit Opportunity Act, which ban racial discrimination in housing and credit transactions, respectively.

The OCC also penalized Trustmark for allegedly violating the Community Reinvestment Act, which requires banks to meet the credit needs of underserved areas within its customer range.

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Redlining's legacy: Maps are gone, but the problem hasn't - CBS News

www.cbsnews.com › redlining-what-is-history-mike-bloomberg-comments

The term redlining is a nod to how lenders identified and referenced neighborhoods with a greater share of people deemed more likely to default ...
Duration: 1:14
Posted: Jun 12, 2020

URBAN HEAT ISLANDS

'Hotlanta' is even more sweltering in these neighborhoods due to a racist 20th-century policy

By Derek Van Dam and Haley Brink, CNN Meteorologists

CNN | 2021-09-18T09:09:09Z

Updated 7:09 PM ET, Sat October 2, 2021

Hotter temperatures disproportionately affect redlined districts

In many urban areas, the hottest parts of the city tend to be in areas that were historically “redlined,” meaning banks and mortgage lenders considered it risky to invest in those neighborhoods. Two examples are Richmond, VA, and Baltimore.

Note: Data is based on predicted afternoon air temperatures on July 13, 2017 (Richmond) and Aug. 29, 2018 (Baltimore). Data is displayed relative to the average predicted temperature throughout all the districts in each respective city.

Source: Robert K. Nelson, LaDale Winling, Richard Marciano, Nathan Connolly, et al., “Mapping Inequality,” American Panorama, ed. Robert K. Nelson and Edward L. Ayers (historical districts); NOAA, via the US Urban Heat Island Mapping Campaigns Storymap (temperature data)

Graphic: Renée Rigdon, CNN

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