AG Garland announces $9M settlement with Ameris Bank to resolve redlining claims in Jacksonville
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Attorney General Merrick Garland came to Jacksonville on Thursday to announce a $9 million settlement with Ameris Bank, saying the bank’s local branches “engaged in a pattern or practice of redlining predominately Black and Hispanic neighborhoods.”
Redlining is defined as an illegal practice in which lenders avoid providing credit services to individuals living in or seeking to live in, communities of color because of the race, color, or national origin of the residents in those communities.
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According to a news release from the Department of Justice, the bank “avoided providing mortgage services to majority-Black and Hispanic neighborhoods in Jacksonville and discouraged people seeking credit in those communities from obtaining home loans.”
The release said that, “Ameris’ home mortgage lending was focused disproportionately on white areas of Jacksonville while other lenders generated applications in majority-Black and Hispanic neighborhoods at three times the rate of Ameris. Although Ameris operates 18 branches in Jacksonville, Ameris has never operated a branch in a majority-Black and Hispanic neighborhood in the city.”
The settlement with Ameris is one of 10 that Garland’s office has secured since 2021, when Garland announced the Combating Redlining Initiative.
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The other settlements with banks and mortgage companies “to provide credit opportunities to communities of color” have taken place in Houston, Memphis, Philadelphia, Camden, Wilmington, Newark, Los Angeles, Columbus, Tulsa, Rhode Island, the DOJ said in its release.
To date, the settlements, including the one with Ameris in Jacksonville, have totaled more than $107 million.
Under the proposed consent order, which is subject to court approval, Ameris Bank will invest $9 million to increase credit opportunities for communities of color in Jacksonville. The Justice Department said specifically, Ameris will:
Invest $7.5 million in a loan subsidy fund that will be made available to residents of majority-Black and Hispanic neighborhoods and those seeking credit in those communities.
Invest $900,000 for advertising and outreach targeted toward the residents of these neighborhoods.
Invest $600,000 to develop community partnerships to provide services that increase access to residential mortgage credit.
Open a new branch in a majority-Black and Hispanic neighborhood in Jacksonville.
Ensure that at least three mortgage loan officers are dedicated to serving majority Black and Hispanic neighborhoods.
Retain a consultant to assess the bank’s compliance management system as it pertains to redlining risk.
Employ a full-time Director of Community Lending who will oversee the continued development of lending in majority-Black and Hispanic neighborhoods in Jacksonville.
CLICK HERE TO READ THE COMPLAINT | CLICK HERE TO READ THE CONSENT ORDER
“As today’s case makes clear, redlining is not just a relic of the past,” Garland said. “That is why, two years ago this month, the Justice Department launched our Combating Redlining Initiative, and once today’s settlement is approved, that Initiative will have secured more than $100 million for communities across the country that have been harmed by discriminatory lending practices. This work is just the beginning – the Justice Department currently has over two dozen active investigations into redlining, spanning neighborhoods across the country.”
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Ameris released the following statement from CEO Palmer Proctor:
“We strongly disagree with any suggestion that we have engaged in discriminatory conduct and are confident in our efforts to provide equal access to affordable mortgage products in the Jacksonville community and all the markets we serve. We cooperated fully with the Department’s inquiry and have entered into this settlement to avoid the distraction of litigation and because we share the Department’s goal of expanding access to homeownership in underserved areas. The terms of this settlement are consistent with the Bank’s existing programs and initiatives. We condemn discrimination in any form and remain committed to helping people in underserved communities gain equal opportunity to achieve homeownership, as well as access to banking services.
“With a 52-year history of service, Ameris is rooted in its purpose of bringing financial peace of mind to people and communities. Over the years, this purpose has led us to introduce various mortgage loan and downpayment assistance programs, develop affordable loan opportunities, and deliver financial education to schools and community groups. We look forward to continuing these proactive efforts and helping more consumers achieve their financial goals.”
Additional information about the Department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program-0. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
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