The Office of the Controller of the Currency (OCC) has taken enforcement action against an Atlanta, Georgia-based financial institution regarding Fair Housing Act violations.
The OCC alleges that Cadence Bank denied residents in majority Hispanic and majority minority neighborhoods in Houston, Texas, equal access to mortgage loans– evidenced via the bank’s pattern of mortgage application and origination activity, branching history, mortgage loan officer structure and operations, and marketing and advertising.
Authorities noted a $3 million civil money penalty (CMP) would be paid to the U.S. Treasury.
“Promoting fairness and inclusion in banking is a fundamental part of the OCC’s mission and one of my four priorities as Acting Comptroller of the Currency,”
Acting Comptroller of the Currency Michael J. Hsu said. “Action against Cadence Bank for redlining demonstrates the agency’s and my personal commitment to ensuring that all of our regulated institutions provide fair access to financial services for all customers.”
According to the OCC, the agency’s examination of the circumstances surrounding the matter focused on lending activities from 2014 to 2016.
“There is no place for discrimination in the federal banking system,” Hsu concluded. “The OCC will use the full force of our authority to correct fair lending violations with our supervisory and enforcement tools, including civil money penalties, cease and desist orders, and requiring restitution for customers harmed as a result of any discriminatory practices.”