Justice Department sets major fair-lending enforcement push

Federal attack on 'modern redlining' begins a key administration effort, including the belief that artificial intelligence will exacerbate lending discrimination and redlining. During DOJ's announcement of the new strategy the government also unveiled a fair-lending settlement.

Department of Justice

The Department of Justice has followed through on a key plank in the Biden campaign platform, with the announcement of a renewed effort to enforce federal fair-lending laws.

The announcement specifically launched the Combatting Redlining Initiative and focused on mortgage lending specifically. Attorney General Merrick Garland said that “we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair-lending authorities.”

“We know well that redlining is not a problem from a bygone era but a practice that remains pervasive in the lending industry today,” stated Kristen Clarke, Assistant Attorney General in the DOJ’s Civil Rights Division. “Our new initiative should send a strong message to banks and lenders that we will hold them accountable as we work to combat discriminatory race and national origin-based lending practices.”


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