Entrepreneur: Cadence (CADE) to Settle Redlining Probes by the DOJ & OCC

Entrepreneur, September 1, 2021, Cadence (CADE) to Settle Redlining Probes by the DOJ & OCC

In order to address and settle previously-slapped allegations of lending discrimination by redlining the Black and Hispanic neighborhoods in Houston, TX, Cadence Bancorporation CADE entered into separate arrangements with the U.S. Department of Justice (DOJ) and the Office of the Comptroller of the Currency (OCC) to pay more than $8.5 million.

To continue ensuring that the minority communities are well served, the bank also entered into a five-year $2.5-billion Community Benefits Plan in 2019. Inaugurated with inputs from the National Community Reinvestment Coalition, the plan comprised provisions for mortgage lending, small business lending, and community development lending and investments across its six-state footprint.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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