The bank allegedly engaged in redlining from 2013 to 2017. Its redlining practices allegedly included locating and maintaining almost all of its branches and all its loan officers in majority0white neighborhoods. Its advertising and outreach were also allegedly focused on majority-white neighborhoods.
The DOJ launched an investigation and sued the Atlanta-based after the OCC referred its findings it violated the FHA and the ECOA.
Details of the settlement agreement
On Monday, the DOJ and the OCC announced that Cadence Bank agreed to resolve allegations in connection with its lending discrimination practices.
Under the settlement agreement, the Atlanta-based bank agreed to invest more than $5.5 million to increase credit opportunities for residents of Black and Hispanic neighborhoods in the Houston area.
The investment includes $4.17 million in loan subsidy fund and $750,000 for the development of community partnerships to provide services that increase access to residential mortgage credit in those neighborhoods. It also includes at least $625,000 for advertising, outreach, consumer financial education, and credit repair initiatives.
