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

Summary

The Justice Department charged Los Angeles-based City National Bank with discrimination for refusing to underwrite mortgages in mostly Black and Latino areas, and the bank was ordered to pay more than $31 million in the department's biggest redlining settlement in history. City National avoided selling and insuring mortgages in primarily Black and Latino Los Angeles County areas between 2017 and 2020, according to the Justice Department. City National will construct a $29.5 million loan subsidy fund for loans to Black and Latino borrowers as part of the settlement, and will spend $1.75 million on advertising, community outreach, and financial education initiatives to target minority borrowers.

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