The news: The Department of Justice (DOJ) announced its first-ever redlining consent order against a credit union, Philadelphia area-based Citadel Federal Credit Union, per American Banker.
- The settlement shocked the credit union industry, known for serving people of modest means and historically disadvantaged groups often hurt by redlining.
How we got here: According to the DOJ, Citadel disproportionately focused its mortgage lending on predominantly white areas around Philadelphia from 2017 through 2021, generating far fewer loan applications and approvals in minority communities than its peers.