Citadel Credit Union Doubles Down On Community Lending After DOJ Settlement

ByTMN Editor Reading Time: 2 minutes

Citadel Credit Union is introducing new lending initiatives after settling a redlining allegation from the Department of Justice.

The credit union will pay $6.5 million to resolve allegations that it engaged in redlining in predominantly Black and Hispanic neighborhoods around Philadelphia.

“This redlining settlement marks the Justice Department’s very first resolution involving a credit union, making clear our intent to hold all types of lenders accountable for their role in modern-day redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.

The DOJ is holding this up as a win in its ongoing battle against lending discrimination.

Citadel “respectfully disagrees” with the DOJ’s assessment but took the settlement as a “vital opportunity to enhance our commitment to proactive community engagement.”

It has committed to providing $6 million in mortgage loan subsidies over a 5-year period for majority Black and Hispanic census tracts in Philadelphia County, as well as $270,000 in additional focused marketing and consumer outreach.

Citadel will also contribute $250,000 to community development partnerships and open three full-service branches in Philadelphia County over the next three years.

“We intend to lean into the responsibility that comes with our growth and live up to our promise to help every community in our service area live their brightest future by inspiring them with guidance and tools to build financial strength,” Citadel President and CEO Bill Brown commented.

In addition to these commitments, Citadel announced new initiatives and expanded its philanthropic arm, Citadel Cares. It appointed a new VP dedicated to philanthropy and community engagement.

Citadel Cares has been “re-vamped” and focuses on community engagement, health and wellness, financial literacy, and education.

The credit union also touted that it is “very near” the launch of a Citadel Home Help Program providing affordable products for buyers in low- to moderate-income census tracts.