August 24, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

Federal Prosecutors Secure Over $31 Million from City National Bank to Address Lending Redlining Allegations

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

Two Days, Two Denials: Menendez Brothers Rejected for Parole

August 23, 2025

August 23, 2025

Erik Denied After 10-Hour Hearing; Lyle Rebuffed the Next Day Erik Menendez, convicted along with his brother in the 1989...

Rob Reiner to Attend for ‘This is Spinal Tap’ as Cinespia Wraps Summer at Hollywood Forever

August 23, 2025

August 23, 2025

Cinespia Closes Out Summer: Fan Favorites and DJs Return to Hollywood Forever Cinespia will close out summer with four outdoor...

Amber Alert for a Critical Missing Incident: Two Foster Brothers Abducted

August 23, 2025

August 23, 2025

Police Seek Non-Custodial Mother Jackeline Hernandez-Torres The California Highway Patrol issued a statewide Amber Alert after two foster brothers, ages...

Man Arrested After Burglary Report at Lionel Richie’s Beverly Hills Home

August 22, 2025

August 22, 2025

Police Say the Singer Was Home When the Suspect Entered the Property One suspect was taken into custody early Friday...

Extreme Heat Warning Extended in L.A. County: Officials Urge Safety Precautions

August 22, 2025

August 22, 2025

National Weather Service Alerts Cover Valleys, Mountains, and Coastal Areas Dangerous heat is expected to persist through the weekend in...

Jury Awards $3.8M to Man Injured by Rubber Bullet During 2020 George Floyd Protest in the Fairfax District

August 22, 2025

August 22, 2025

Filmmaker Suffered Permanent Injuries After Being Struck by a Sheriff’s Deputy’s Round Los Angeles County must pay nearly $4 million...

LAPD Urges Possible Victims to Come Forward in Sexual Assault Case Linked to Social Media

August 22, 2025

August 22, 2025

Suspect Arrested Aug. 20 on Suspicion of Forcible Rape Los Angeles police are asking for the public’s help in identifying...

Frozen Shrimp Recall Expanded to California After Radioactive Contamination Concerns

August 21, 2025

August 21, 2025

Southwind Foods Adds California Shrimp Recall Tied to Possible Cesium-137 Exposure Southwind Foods, LLC is recalling select packages of frozen...

LAPD to Step Up DUI Enforcement With Weekend Checkpoints and Patrols

August 21, 2025

August 21, 2025

Police Plan Multiple Operations Across Los Angeles August 22-24  The Los Angeles Police Department will operate a series of DUI...

Little C by Crustacean Pop-Up Brings Back Mama An’s Street Food in Beverly Hills

August 21, 2025

August 21, 2025

Fan-Favorite Dishes Return Through Aug. 24, With the Debut of Bánh Xèo Little C by Crustacean has returned this month...

Kids Eat Free at Tender Greens Century City During Back-to-School Nights in August

August 20, 2025

August 20, 2025

Weeknight Promotion Offers Free Kids’ Meals With the Purchase of an Entrée. Families dining at Tender Greens in the Westfield...

Stoa Wine Bar & Market Debuts in Marina del Rey With Old-World Charm and California Ease

August 20, 2025

August 20, 2025

New Westside Spot Blends European Traditions, Seasonal Fare, Philosophy of Slowing Down Blending European tradition with California ease, Stoa Wine...

Two LA Culinary Icons and Friends Reunite for One-Night-Only Dinner at Marelle

August 20, 2025

August 20, 2025

Chefs Team Up With Five-Course Tasting Celebrating California Flavors  Two of Los Angeles’ most celebrated chefs will share the kitchen...

Film Review: Honey Don’t!

August 20, 2025

August 20, 2025

Honey Don’t! is a neo-noir with a droll comedic sensibility set in the blazing sun of Bakersfield, California. Margaret Qualley...

Los Angeles City Council Opposes Statewide Density Bill SB 79 in an 8–5 Vote

August 20, 2025

August 20, 2025

Council Rejects Housing Density Plan, Cites Local Control Concerns The Los Angeles City Council voted 8–5 on Monday to oppose...