With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today .
Groups accuse OneWest, CIT Bank of violating Fair Housing Act
File: People walk by the headquarters of CIT Group on Nov. 2, 2009 in New York City.
(
Spencer Platt/Getty Images
)
A map created by housing advocates purports to show OneWest Bank locations in relation to minority communities in the greater Los Angeles area.
(
National Community Reinvestment Coalition
)
A table created by housing advocates purports to show the percentage of loans made to different minority groups by OneWest Bank compared to the percentage of the local population those groups make up.
(
National Community Reinvestment Coalition
)
Two nonprofit housing advocacy groups are accusing Pasadena's OneWest Bank of discriminatory lending practices.
The California Reinvestment Coalition and Fair Housing Advocates of Northern California filed a complaint Wednesday with the federal Department of Housing and Urban Development against OneWest's parent company, CIT Bank. They allege that the bank may have violated the Fair Housing Act through practices that kept minorities — in particular Asian, black and Latino applicants — from having equal access to home loans.
"The bank's lending to people of color in neighborhoods of color is low in absolute terms, it's low compared to what other banks are doing, and it's low compared to the proportion of people of color in the neighborhoods that the bank is meant to serve," California Reinvestment Coalition Deputy Director Kevin Stein told KPCC.
A table created by housing advocates purports to show the percentage of loans made to different minority groups by OneWest Bank compared to the percentage of the local population those groups make up.
(
National Community Reinvestment Coalition
)
Support for LAist comes from
The Fair Housing Act "prohibits discrimination in the sale, rental, and financing of dwellings ... based on race, color, national origin, religion, sex, familial status ... and disability," according to HUD.
The complaint alleges OneWest avoided putting branches in minority communities and extended few mortgage loans to minorities.
"Having branches that kind of ring neighborhoods of color in its assessment area [...] is not making branch loan products, other branch loan products and financial services available to those communities," Stein said.
A map created by housing advocates purports to show OneWest Bank locations in relation to minority communities in the greater Los Angeles area.
(
National Community Reinvestment Coalition
)
The number of home loans made by OneWest in minority communities over the last few years is dwarfed by the number of foreclosures in those areas, Stein said. An estimated 68 percent of the bank's foreclosures occurred in minority communities, the groups allege.
"To have an institution that's main way of interacting with working-class communities and communities of color to be through foreclosure is deeply disturbing," Stein said. "We're hoping that the bank will change its course and recommit itself to doing what is right, and making credit available to all qualified borrowers and consumers in its assessment area."
The groups also say OneWest maintained and marketed foreclosed homes in predominantly white neighborhoods better than those in minority neighborhoods.
Support for LAist comes from
U.S. Bank reached a settlement over a similar complaint about its foreclosed properties in September.
The complaint now goes on to be reviewed by HUD, who will make a determination of whether it falls within their jurisdiction, and if so, whether to pursue an investigation.
KPCC reached out to OneWest Bank for comment, but had not heard back at press time.
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Chip in now to fund your local journalism
(
LAist
)
Trending on LAist
-
The study found recipients spent nearly all the money on basic needs like food and transportation, not drugs or alcohol. -
Kevin Lee's Tokyo Noir has become one of the top spots for craft-inspired cocktails. -
A tort claim obtained by LAist via a public records request alleges the Anaheim procurement department lacks basic contracting procedures and oversight. -
Flauta, taquito, tacos dorados? Whatever they’re called, they’re golden, crispy and delicious. -
If California redistricts, the conservative beach town that banned LGBTQ Pride flags on city property would get a gay, progressive Democrat in Congress. -
Most survivors of January's fires face a massive gap in the money they need to rebuild, and funding to help is moving too slowly or nonexistent.
Best of LAist