Judge eliminates Tulsa massacre mentions from DOJ's redlining directive

In a recent development, Magistrate Judge Christine Little removed references to the 1921 Tulsa Race Massacre from a redlining consent order involving the American Bank of Oklahoma. The bank agreed to pay $1.15 million to settle an investigation into inadequate mortgage lending services, but the substantive portion of the August consent order remains unchanged.

The investigation, which covered the years 2017 to at least 2021 in the Tulsa metropolitan area, found that the American Bank of Oklahoma had not provided adequate mortgage lending services in predominantly Black and Hispanic neighbourhoods. As a result, the bank must establish a $950,000 loan fund to subsidize mortgages and home improvement financing in these areas.

The bank must also open a branch in a majority Black and Hispanic census tract. In addition to these requirements, American Bank of Oklahoma is planning to launch new lending and financial education initiatives to serve North and Northeast Tulsa residents.

Joe Landon, CEO of American Bank of Oklahoma, expressed his disagreement with the removal of references to the 1921 Tulsa Race Massacre, stating that they were "irrelevant, confusing, and reputationally harmful." He also claimed that the ruling made it clear that there is no connection between the bank and the massacre.

The removed references in the consent order discussed the historically Black neighborhoods in Tulsa that were the site of the 1921 Tulsa Race Massacre. The DOJ noted in a legal filing that areas that are redlined by lenders are frequently areas that have experienced other types of discrimination in the past. However, no institutions have publicly acknowledged participating in redlining practices in the Tulsa region from 2017 to at least 2021.

The American Bank of Oklahoma, founded in 1998, is based in Collinsville, Oklahoma. According to American Banker, Landon stated that the ruling does not prevent the bank from discussing its history and commitment to diversity and inclusion.

The DOJ has contended that redlining and discrimination are historically deep-seated, and the removal of references to the Tulsa Race Massacre from the consent order has sparked controversy and debate. No information about purchase licensing rights was provided in the article.