Justice Department Says It’s Cracking Down on ‘Modern’ Redlining
- Investigators will examine digital tools used by lenders
- First case of initiative brought against Trustmark Bank
Merrick Garland, U.S. attorney general, speaks at the Department of Justice in Washington, D.C., on Oct. 22.
Photographer: Sarah Silbiger/BloombergThis article is for subscribers only.
The Justice Department will prioritize redlining investigations with Attorney General Merrick Garland pledging the crackdown on discriminatory lending would be unprecedented in its aggressiveness.
Speaking at a Friday press briefing, Garland framed the initiative as targeting “modern redlining.” Other watchdogs at the event said that would include the use of algorithms and online data that could violate fair housing laws. The attorney general said the government has several cases in the works and that it’s likely to open more probes into whether minorities are being denied loans.