Why it matters:
- In July 2022, the DOJ settled its first case of modern-day redlining with a non-bank. The penalty was $25 million.
- The DOJ cited many factors, including the location of branches and the firm’s hiring practices. It mentioned that 94% of the firm’s loan officers are white, and branches are not located in minority communities.
- This landmark ruling sets a precedent for fair lending cases that could impact mortgage lenders in the future.
Hiring diverse LOs is the best way to safeguard your lender against sky-high legal penalties while enabling your sales team to connect with future borrowers. For more information on the case, check out this post from the Consumer Financial Protection Bureau.
Pat Sherlock is the founder of QFS Sales Solutions, an organization that helps organizations improve their sales talent management and performance. For more information, visit https://patsherlock.com.
