The Justice Department accused First National Bank of #Pennsylvania of discriminatory practices against Black and Latino homebuyers in North Carolina over four years, adding to a string of redlining cases. #FNB agreed to a $13.5 million settlement, primarily funding loans for affected communities.
Allegations include branch closures in minority areas, lack of mortgage services, and neglecting potential borrowers. The case originated from FNB's acquisition of Yadkin Bank in 2017, despite FNB claiming the issues predated the purchase. North Carolina's Attorney General emphasized the injustice faced by its residents. Under the #Biden Administration, the DOJ established a Redlining Taskforce, leading to 13 settlements totaling $122 million.
This initiative aims to combat racial discrimination in financial services, exemplified by a significant lawsuit against City National Bank. Assistant Attorney General Kristen Clarke highlighted the economic and social impact of modern redlining.
FNB disputed the allegations but settled to avoid prolonged litigation, emphasizing compliance with lending laws. The case highlights ongoing challenges in achieving equal economic opportunity and racial justice in the United States.
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Link: ABCNEWS