CFPB, DOJ, and OCC take action against Trustmark National Bank for discrimination

The Consumer Financial Protection Bureau and Department of Justice, in cooperation with the Office of the Comptroller of the Currency, have entered into a settlement to resolve allegations of redlining by Trustmark National Bank. The CFPB and DOJ allege that Trustmark discriminated against Black and Hispanic neighborhoods by deliberately not marketing, offering, or originating home loans to consumers in majority-Black and Hispanic neighborhoods in the Memphis metropolitan area. They also allege that Trustmark discouraged consumers residing in or seeking credit for properties located in these neighborhoods from applying for credit.

Under the settlement, which is pending court approval, Trustmark would put $3.85 million into a loan subsidy program for impacted neighborhoods, increase its lending presence there, and implement proper fair lending procedures. The order would also impose a $5 million civil money penalty against the bank, and will credit the $4 million penalty collected by the OCC toward the satisfaction of this amount.

The CFPB's detailed press release, with links to the complaint and proposed order, is here.

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