The Bank Slate


Park National to pay $9M to settle redlining claims

Park National in Newark, Ohio, has agreed to pay $9 million to settle redlining claims.

The Justice Department said in a press release that the $9.8 billion-asset company decided to resolve allegations that it engaged in “a pattern or practice of lending discrimination” around Columbus, Ohio.

The complaint, filed in the U.S. District Court for the Southern District of Ohio, alleged that Park failed to provide mortgage lending services in majority Black and Hispanic neighborhoods between 2015 and 2021.

“While we disagree with any suggestion that intentional discrimination took place, we are united with the DoJ in our commitment to ensuring equal access to credit for all consumers,” David Trautman, Park’s chairman and CEO, said in the release.

“Park strongly condemns discrimination in any form,” Trautman added.

Park agreed to invest about $7.8 million in a loan subsidy fund to boost access to mortgages, refinance loans and home equity lines of credit in majority Black and Hispanic neighborhoods around Columbus.

The company also agreed to invest $750,000 in outreach and $500,000 to develop community partnerships. The agreement also requires Park to open one new branch and a new mortgage loan production office in majority Black and Hispanic neighborhoods in Columbus.

Finally, Park will conduct a community credit needs assessment to identify the need for financial services in certain markets around Columbus.

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