The Justice Department says First National Bank discriminated against Black and Latino homebuyers in North Carolina for a period of at least four years, the latest in a long list of banks who have been caught redlining.

First National Bank of Pennsylvania discriminated against Black and Latino homebuyers in North Carolina for a period of at least four years, the Justice Department said Monday, the latest in a long list of banks who have been caught redlining.

The Justice Department said FNB will pay $13.5 million to settle the redlining charges, of which the bulk will go into a fund to help subsidize loans for Black and Latino borrowers in Charlotte and Winston-Salem, two housing markets where the DOJ found discrimination.

In its complaint, the DOJ alleges that First National closed branches in majority-minority neighborhoods, failed to provide mortgage services to Black and Latino potential borrowers, and ignored entire neighborhoods for potential lending. The DOJ found that lenders of similar size and scope to First National did two to four times as much lending to minority borrowers between 2017 and 2021 as First National.

The case comes from when FNB bought Yadkin Bank, a regional bank in the Carolinas, in 2017. While FNB says the bad behavior happened at Yadkin before the acquisition, the DOJ said that any bank that buys another bank should be held accountable for the acquired bank’s actions.

  • @jjjalljs
    9•4 months ago

    Everyone who was turned down should just be given a house outright, paid for by the bank’s leadership

    The remains of the bank should be nationalized.

    Everyone who worked there in a leadership position should be barred from working in finance for life.

    $13.5 million isn’t shit.