OneWest Bank, founded by Steven Mnuchin, accused of redlining in SoCal

Mnuchin is a contender for Sec. of Treasury in Donald Trump’s administration

TRD LOS ANGELES /
Nov.November 18, 2016 04:00 PM

Two housing advocacy groups have accused OneWest Bank, which is headquartered in Pasadena, of discriminating against black and hispanic borrowers in California.

Steven Mnuchin, a contender for the position of Treasury secretary in Donald Trump’s administration, founded the bank in the wake of the 2008 mortgage crisis. The groups allege the bank made few mortgages to minority homeowners and had very few branches in minority neighborhoods.

Their complaint requests the Department of Housing and Urban Development investigate whether OneWest violated federal discrimination laws, including redlining, Bloomberg reported.

Historically, redlining referred to the Federal Housing administration flagging neighborhoods, usually black neighborhoods, as high-risk, making it difficult for homeowners to get loans, and putting them at the mercy of lenders who could easily exploit them.

OneWest has 52 branches in Los Angeles alone, but lent to only two black borrowers across six Southern California counties throughout the years of 2014 and 2015, according to an analysis by the two housing groups, California Reinvestment Coalition and Fair Housing advocates of Northern California.

Out of its 74 branches in Southern California, zero are in predominantly black neighborhoods, according to the analysis. There were 11 branches in majority-Latino neighborhoods and one in a majority-Asian neighborhood.

Mnuchin, who sold the bank to CIT Group last year, is not named directly in the suit, but was active at the bank during the period of alleged redlining.

CIT, which paid $3.4 billion for the bank, said it was “committed to fair-lending.” Mnuchin owned a 1.2 percent stake in CIT as recently as March. [Bloomberg] Chava Gourarie 


Related Articles

arrow_forward_ios
From left: Jason Segel, Donald Trump, Shaun White White, and Dr. Dre (Credit: Getty Images)

This week in celeb real estate: Trump leaves Beverly Hills, Dr. Dre buys in Pacific Palisades… and more

This week in celeb real estate: Trump leaves Beverly Hills, Dr. Dre buys in Pacific Palisades… and more
Donald Trump has sold his home in Beverly Hills (Credit: Getty Images, and Google Maps)

Trump Org sells off Beverly Hills home

Trump Org sells off Beverly Hills home
Gavin Newsom, Donald Trump and a rendering of the train

Trump derails $929M in funding for the bullet train, jeopardizing construction

Trump derails $929M in funding for the bullet train, jeopardizing construction
Donald Trump and Sam Zell (Credit: Getty Images)

Zell on Trump: President’s tax documents showing massive losses “don’t tell much of a picture”

Zell on Trump: President’s tax documents showing massive losses “don’t tell much of a picture”
President Trump said to acknowledge talks about Moscow skyscraper continued through election night

President Trump said to acknowledge talks about Moscow skyscraper continued through election night

President Trump said to acknowledge talks about Moscow skyscraper continued through election night
Trump’s “new NAFTA” deal with Canada could be relief for developers

Trump’s “new NAFTA” deal with Canada could be relief for developers

Trump’s “new NAFTA” deal with Canada could be relief for developers
Trump pal Thomas Barrack snaps up Brentwood spec home

Trump pal Thomas Barrack snaps up Brentwood spec home

Trump pal Thomas Barrack snaps up Brentwood spec home
Lisa Korbatov and Donald Trump, with local officials celebrating a 2014 groundbreaking on the Metro Purple Line Extension (Credit: Neon Tommy via Flickr, Wikimedia Commons)

Force behind campaign against Metro’s Purple Line may have a Trump card

Force behind campaign against Metro’s Purple Line may have a Trump card
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...