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

Miami /
Nov.November 19, 2016 03:00 PM

From the Los Angeles site: 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
Eric and Lara Trump with 502 Bald Eagle Drive in Jupiter (Getty, Google Maps)
Trump town: Eric and Lara buy home near Don Jr. in Jupiter
Trump town: Eric and Lara buy home near Don Jr. in Jupiter
Fontainebleau Miami Beach, Jeffrey Soffer and former President Donald Trump (Ebyabe/Wikipedia, Getty, iStock)
Gambling portability a no-go in Florida this year for Jeffrey Soffer, Trump
Gambling portability a no-go in Florida this year for Jeffrey Soffer, Trump
Gil Dezer (Photos by Sonya Revell)
The Closing: Gil Dezer
The Closing: Gil Dezer
Brad Parscale and 2319 Desota Drive (Getty, Google Maps)
Brad Parscale, ex-Trump campaign manager, sells Fort Lauderdale home
Brad Parscale, ex-Trump campaign manager, sells Fort Lauderdale home
Donald Trump with sons Eric and Don Jr. and 1125 South Ocean Boulevard (Getty, Google Maps/Illustration by Alexis Manrodt for The Real Deal)
Trump lists beachfront mansion next to Mar-a-Lago for $49M
Trump lists beachfront mansion next to Mar-a-Lago for $49M
Photo illustration of Donald Trump at Mar-a-Lago (iStock, Getty/Illustration by Kevin Rebong for TRD)
Trump argues to live in Mar-a-Lago — as an employee
Trump argues to live in Mar-a-Lago — as an employee
535 North County Road and Mark Pulte with former President Donald Trump (Google Maps; Pulte Family Foundation; Getty)
Spec home built on Trump’s former Palm Beach property under contract for $140M
Spec home built on Trump’s former Palm Beach property under contract for $140M
Trump Plaza’s condo board votes to remove ex-president’s name from West Palm towers
Trump Plaza’s condo board votes to remove ex-president’s name from West Palm towers
Trump Plaza’s condo board votes to remove ex-president’s name from West Palm towers
arrow_forward_ios

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

Loading...