Park National Bank, a Newark, Ohio-based bank, has agreed to pay $9 million to resolve allegations of redlining in the Columbus metropolitan area. The agreement, reached with the U.S. government, marks one of the largest penalties for redlining in recent years.
Redlining is a practice in which lenders deny or limit credit to communities of color, often based on the racial or ethnic makeup of the neighborhood. In this case, the government alleges that Park National Bank discriminated against African American and Hispanic communities in Columbus by limiting their access to mortgage credit.
The allegations date back to 2015, when Park National Bank allegedly began to reduce its lending activities in African American and Hispanic neighborhoods in Columbus. The bank allegedly concentrated its mortgage lending activities in predominantly white neighborhoods, and failed to take meaningful steps to compensate for its lack of presence in communities of color.
Under the agreement, Park National Bank has agreed to invest at least $7.75 million in a loan subsidy fund to increase access to credit for home purchases, improvements, and refinancing, as well as home equity loans and lines of credit, in African American and Hispanic neighborhoods in Columbus.
The bank has also agreed to open a new branch and a new mortgage loan production office in African American and Hispanic neighborhoods in Columbus, and to ensure that at least four mortgage loan officers, at least one of whom is Hispanic, are available to serve residents of those neighborhoods.
The agreement marks a significant victory for the U.S. government’s efforts to combat redlining and promote equal access to credit for communities of color. The government has made clear that it will not tolerate discriminatory lending practices and will hold banks accountable for their actions.
Park National Bank’s agreement is part of the U.S. government’s broader efforts to combat redlining and promote equal access to credit for communities of color. The government has launched several initiatives to address the issue, including the National Redlining Initiative, which aims to identify and address redlining practices in communities across the country.
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Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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