As U.S. demographics shift, it is smart business to ramp up recruiting of non-white sales professionals.
Why it matters:
• In July 2022, the DOJ settled its first case on modern-day redlining with a non-bank. The settlement penalty was $25 million.
• The DOJ cited many factors including the location of branches and the firm\’s hiring practices. They mentioned that 94% of the firm’s loan officers were white, and branches were 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 Consumer Financial Protection Bureau article.