The Justice Department will prioritize redlining investigations with Attorney General
Speaking at a Friday press briefing, Garland framed the initiative as targeting “modern redlining.” Other watchdogs at the event said that would include the use of algorithms and online data that could violate fair housing laws. The attorney general said the government has several cases in the works and that it’s likely to open more probes into whether minorities are being denied loans.
“The initiative represents the department’s most aggressive and coordinated effort to address redlining,” said Garland, adding that his agency will work with the
In a sign of the renewed focus, the department brought an enforcement action Friday against a unit of Trustmark Corp., alleging the subsidiary structured its business practices to avoid providing home loans and other mortgage services to people living in majority-Black and Hispanic neighborhoods in the Memphis area.
From 2014 through 2018, the unit’s alleged redlining practices included having nearly all its branches and loan officers in majority-white neighborhoods, according to the government’s lawsuit filed in federal court in Tennessee. Without admitting or denying the allegations, Jackson, Mississippi-based Trustmark agreed to pay $5 million in penalties to the CFPB and
Trustmark Chief Executive Officer
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