“The median family wealth for a black family is $ 24,100, compared to $ 188,200 for a white family,” the deputy attorney general said.
WASHINGTON (NEXSTAR) – The US Department of Justice is tackling discrimination in mortgage lending – an issue it says has led to income inequality among minorities.
United States Attorney General Merrick Garland said the Department of Justice has launched a new initiative to tackle discriminatory lending practices known as redlining “by making much more robust use of our authorities. fair loan ”.
The department’s civil rights division will partner with U.S. law firms to help make equitable access to credit a reality in underserved communities.
“The initiative represents the most aggressive effort in the department to combat redlining,” Garland said.
The Justice Department also announced the second redlining settlement in two months, this time with Trust Mark National Bank in a case outside Tennessee.
“The deal resolves the allegation that Trust Mark engaged in lending discrimination by marking predominantly black and Hispanic neighborhoods,” Garland said.
Assistant Attorney General Kristen Clarke explained that historic lending discrimination has contributed to generational wealth inequality.
“The magnitude of the disparities is staggering. The median family wealth for a black family is $ 24,100, compared to $ 188,200 for a white family, ”Clarke said. “The property gap between white and black families is larger today than it was in 1960.”
The Justice Department has said no resources will be spared and more legal actions to tackle redlining will come.
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