The Justice Department has announced that the First National Bank of Pennsylvania has settled charges of redlining against Black and Latino homebuyers in North Carolina by agreeing to pay $13.5 million. The DOJ found that FNB discriminated against minority borrowers in Charlotte and Winston-Salem by closing branches in minority neighborhoods, failing to provide mortgage services to Black and Latino borrowers, and neglecting entire neighborhoods for lending opportunities.
This is the 13th redlining settlement brought by the Biden Administration since 2021, signaling a new focus on racial discrimination in financial services. Under Attorney General Merrick Garland, the Justice Department has established a Redlining Taskforce to address these issues.
The case against FNB stems from its acquisition of Yadkin Bank in 2017, with the DOJ holding FNB accountable for the actions of its acquired bank. Despite FNB’s claims of compliance with lending laws, it chose to settle in order to move past the issue.
Assistant Attorney General Kristen Clarke emphasized the importance of addressing modern-day redlining as a means of promoting economic opportunity and racial justice. The DOJ has brought in $122 million in redlining settlements through the Taskforce since its inception.
Overall, this settlement serves as a reminder that discriminatory lending practices have no place in our society, and efforts to ensure equal economic opportunity and racial justice must continue.
Source
Photo credit fortune.com