The Justice Department has accused Los Angeles-based City National Bank of discrimination by refusing to underwrite mortgages in predominantly black Black and Latino communities.
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 Justice Department alleges City National, a bank with roughly $95 billion in assets, was so reluctant to operate in neighborhoods where most of the residents are people of color, the bank only opened one branch in those neighborhoods in the past 20 years.
As part of the settlement, City National will create a $29.5 million loan subsidy fund for loans to Black and Latino borrowers, and spend $1.75 million on advertising, community outreach and financial education programs to reach minority borrowers.
To be honest, the fact that there are still stories like this in 2023 is disheartening. As frustrating as it is, I’m glad that there are platforms such as this where you all can be educated on real estate investing. I posted about this on Instagram, check out the comments here.
If you’re interested in gaining knowledge that will help you invest in real estate, definitely tune into my show, Black Real Estate Dialogue. You can watch on Youtube and you can listen on Apple Podcasts or Spotify.
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