Additionally, Cadence Bank agreed to dedicate at least four mortgage loan officers to majority-Black and Hispanic neighborhoods in Houston and open a new branch in one of those neighborhoods.
Furthermore, the Atlanta-based bank agreed to hire a director of community lending and development who will supervise its compliance with the settlement agreement.
Moreover, Cadence Bank agreed to pay a civil penalty of $3 million to the U.S. Treasury. The OCC assessed the penalty related to its violations of the FHA and ECOA.
In a statement, the DOJ’s Civil Rights Division Assistant Attorney General Kristen Clarke said, “When banks fail to provide equal access to credit in communities of color, they violate our civil rights laws and they deprive people in those communities of the opportunity to build wealth. Redlining is an illegal practice that has far-reaching consequences for people of color, their families, and for the neighborhoods where they live.”
On the other hand, Acting Comptroller of the Currency Michael Hsu commented, “There is no place for discrimination in the federal banking system. The OCC will use the full force of our authority to correct fair lending violations with our supervisory and enforcement tools, including civil money penalties, cease and desist orders, and requiring restitution for customers harmed as a result of any discriminatory practices.”
