Justice Department Secures Over $31 Million from City National Bank to Address Redlining Claims

Represents the largest redlining settlement under Attorney General Merrick B. Garland’s Combating Redlining Initiative

The Justice Department has announced a settlement to resolve claims that City National Bank was engaging in discriminatory loan practices, known as “redlining”, within Los Angeles County. This resolution will grant more than $31 million in relief to those affected and their communities. 

The agreement, part of the Department’s nationwide Combating Redlining Initiative that Attorney General Merrick B. Garland launched in October 2021, represents the largest redlining settlement in its history. City National is the largest bank headquartered in Los Angeles and is among the fifty largest banks in the United States. 

A complaint was brought forward in federal court that City National had unlawfully avoided providing mortgage loan services from 2017 to 2020 in neighborhoods predominantly inhabited by Black and Hispanic people in Los Angeles County. This practice of lenders denying credit due to neighborhood demographics is commonly known as “redlining”, which is prohibited by law based on race, color, or national origin.

According to the complaint, other banks reportedly received more than six times as many applications in majority-Black and Hispanic areas in Los Angeles County than City National did over a given period. During the same timeframe, City National opened or acquired 11 branches – yet just one was located in a majority-Black or Hispanic area. Moreover, no staff were appointed by City National to arrange mortgages at this branch, unlike in its branches located in predominantly white areas.

“In the words of Dr. Martin Luther King Jr., the issue of fair housing is a ‘moral issue.’ Thus, ending redlining is a critical step to closing the widening gaps in homeownership and wealth, especially in a city as large and diverse as Los Angeles,” said United States Attorney Martin Estrada. “It is unacceptable that redlining persists into the 21st century, and this case demonstrates our commitment to combat redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending, and meeting the credit needs in Los Angeles.”

City National Bank has agreed, subject to court approval and filed in a U.S. District Court in Los Angeles, to invest $29.5 million into a loan subsidy fund for majority-Black and Hispanic neighborhoods within LA County, plus $500,000 for targeted advertising/outreach, $500,000 for a consumer financial education program and $750,000 for developing community partnerships to increase access to residential mortgage credit.

They will also open one new branch in such a neighborhood, assign four mortgage loan officers and appoint a Community Lending Manager to oversee lending development in those areas; as well as conduct research on the needs of financial services regarding majority-Black and Hispanic census tracts.

City National worked in tandem with the Department to address redlining complaints. As part of the resolution, City National announced that it is actively working to extend its lending services across the country, increasing credit access for communities of color. This would include creating residential mortgage programs covering areas such as New York, Georgia, Nevada and Tennessee; as well as a small business lending program to assist underserved business owners.

Related Posts

Santa Monica to Begin AI-Powered Bus Lane Enforcement in July

June 23, 2025

June 23, 2025

The program follows a 45-day pilot conducted earlier this year along Lincoln Boulevard, where 511 potential violations were identified, though...

Sculptor-Designed Marina Del Rey Beach Home Hits Market for Nearly $10M

June 23, 2025

June 23, 2025

The four-bedroom, six-bathroom residence, known as Shore House, features black glass windows across two wings A 6,603-square-foot beachfront home, designed...

Real Estate Trends Emerge in Palisades as Rebuild Begins

June 23, 2025

June 23, 2025

With an estimated 2,000 properties affected by the fires, these initial sales represent only a fraction of what’s expected In...

LADWP to Host Virtual Town Hall on Santa Ynez Reservoir, Underground Power Lines

June 22, 2025

June 22, 2025

Residents can submit questions in advance through an online RSVP form The Los Angeles Department of Water and Power (LADWP)...

All Aboard to LAX: Metro Opens Game-Changing Transit Hub Ahead of Global Events

June 21, 2025

June 21, 2025

New LAX/Metro Transit Center Comes Closer to Connecting Metro Directly to LAX The Los Angeles County Metropolitan Transportation Authority (Metro)...

Strongman to Pull 34,680-Pound Bus at Santa Monica Pier

June 21, 2025

June 21, 2025

Licis, also the 2022 “Arnold Strongman Classic” champion, will undertake the feat to showcase his strength  Strongman Martins Licis, the...

Malibu Traffic Delays Expected: REPORT

June 21, 2025

June 21, 2025

The warning applies to the first weekend of summer Transportation officials are warning travelers on the Pacific Coast Highway through...

Last Thursday Concert to Feature Dancing Lessons, Ginger Merkin and More This Week

June 21, 2025

June 21, 2025

The series runs on the last Thursday of each month through September 26 The Last Thursday Venice Summer Concert Series...

SMC Gallery to Showcase Faculty Art in Virtual Exhibition

June 21, 2025

June 21, 2025

The online event will feature works by seven Emeritus faculty artists. The Santa Monica College Emeritus Art Gallery will host...

Governor Declares Emergency for Malibu to Aid Franklin Fire Recovery

June 20, 2025

June 20, 2025

The fire’s impact was compounded by the January 2025 Los Angeles County Fires and Windstorm Event California Gov. Gavin Newsom...

THIS WEEKEND: Five Outdoor Concerts for Make Music Day Comes to Santa Monica

June 20, 2025

June 20, 2025

The global event, inspired by France’s Fête de la Musique, unites communities through music and is observed in over 800...

(Video) Where great minds grow at The Willows Community School

June 19, 2025

June 19, 2025

The Willows, a DK-8 co-educational school, enrolls 474 students from 57+ zip codes annually. As a balanced, progressive educational leader, experiential learning,...

National Guard Shortage Strains Firefighting Efforts Amid Trump Deployment: Governor

June 19, 2025

June 19, 2025

Newsom claims the redeployment, which he calls illegal, has left the Monte Fire—spanning 868 acres and injuring three firefighters—understaffed Governor...

THIS WEEKEND: Theatre Palisades Stages Last Performances of ‘Jest a Second!’

June 19, 2025

June 19, 2025

The play, a sequel to “Beau Jest,” follows Sarah and Bob, now married and expecting a child, as they navigate...

(Video) A Plus Tree: A Steward of Urban Forest Management Across Los Angeles

June 18, 2025

June 18, 2025

For More Information, Go to Aplustree.com For More Information, Go to https://t.co/3PhU1J5wOj pic.twitter.com/1AWITi5NFw — Palisades News (@PalisadesNewsLA) June 19, 2025