Assistant Attorney General Kristen Clarke recently announced the establishment of the "Combatting Redlining Initiative," which will focus on eliminating loan discrimination in the housing market.
Clarke said in a press release from the Department of Justice (DOJ) that redlining is still prevalent and contributes to the continued disparity in homeownership and net worth between white families and families of color.
The DOJ's effort to eliminate redlining follows a settlement involving Trustmark Bank, which was accused of "redlining prominently Black and Hispanic neighborhoods in Memphis, TN."
“Our commitment to combatting redlining is evident in the settlement against Trustmark," Clarke said. "The resolution we achieved jointly with the Bureau resolved the government’s allegation that Trustmark engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Memphis, Tennessee. The bank is working now to improve its fair lending compliance and has demonstrated a commitment to the terms and goals of this settlement.”
Trustmark will provide a $3.85 million loan subsidy program for these neighborhoods as part of their settlement.
Clarke also stated the Justice Department will collaborate with state AG districts to ensure that local banking institutions adhere to fair lending policies.
