Settlement Proposed to Address Discriminatory Lending Claims in Tulsa
The U.S. Department of Justice and an Oklahoma bank have put forth a plan to settle accusations of biased lending practices against Black and Hispanic people in the Tulsa region.
Redlining Practice and Settlement Proposal
Redlining, which involves denying credit based on racial or national origin, was reportedly used by the Collinsville-based American Bank of Oklahoma (ABOK) from 2017 to at least 2021, particularly in majority-Black and Hispanic neighborhoods in Tulsa. The proposed agreement, which needs court approval, outlines that ABOK will allocate $1.15 million in credit opportunities to communities of color within Tulsa.
Steps Toward Equity
Assistant Attorney General Kristen Clarke from the department’s Civil Rights Division emphasized that this agreement aims to increase investments and opportunities for homeownership and financial stability in Black and communities of color in Tulsa. The provisions in the agreement are designed to promote generational wealth-building, especially in neighborhoods affected by the historical scars of the Tulsa Race Massacre.
Bank’s Response and Commitments
ABOK denied the allegations but decided to agree to the settlement proposal to avoid prolonged litigation costs and distractions. Bank CEO Joe Landon expressed his sorrow for the tragic events of the 1921 Tulsa Race Massacre, while also sharing plans to expand banking services and options in Tulsa, including mortgage and refinancing choices. Additionally, the bank will establish a loan production office in a historically Black area of the city.
Justice Department’s Requirements
As part of the proposed settlement, ABOK will commit to providing at least two mortgage loan officers for majority-Black and Hispanic neighborhoods. The bank will also host regular consumer financial education seminars with translation and interpretation services in Spanish to promote financial literacy.
Future Outlook
ABOK’s plans include hiring a full-time director of community lending to oversee lending activities in neighborhoods of color in the Tulsa area. This move is intended to contribute to greater equity and inclusivity in the region’s financial services.
In the wake of a history marked by events like the 1921 Tulsa Race Massacre, this settlement proposal represents a step toward addressing historical inequalities and fostering a more inclusive financial landscape.