The U.S. Department of Justice (DOJ) recently announced legal actions aimed at addressing discriminatory lending practices, documenting systemic racism in the financial services industry. The cases highlight DOJ’s efforts: a $6.5 million settlement with Citadel Federal Credit Union for redlining Black and Hispanic communities, and a lawsuit against Rocket Mortgage , an appraisal management company, and an appraiser for racial discrimination in a mortgage refinance application. These cases underline a painful truth: redlining and racial discrimination in housing and mortgage lending persist, reinforcing racial wealth disparities and undermining the economic potential of minority communities. The Citadel Federal Credit Union Case In the first case, the settlement with Citadel Federal Credit Union reveals a stark reality. Despite decades of laws intended to prevent it, redlining—a practice in which lenders systematically deny or limit financial services to communities of color—remains ...
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