Ameris Bank has agreed to a $9 million settlement with the Department of Justice, which accused the bank of redlining in parts of Jacksonville.
The DOJ alleges that while Ameris Bank operates 18 branches in Jacksonville, it has never operated a branch in a majority-Black or Hispanic neighborhood.
The DOJ complaint states that Ameris Bank failed to provide home loans to residents of those neighborhoods. It adds that Ameris home loans were issued to residents of majority-Black and Hispanic census tracts at a rate of only 2.7% from 2016 through 2021. In comparison, Ameris competitors conducted about 3.5 times more business, with 9.5% of their loans in those census tracts.
Ameris Bank denied the allegations but proposed settling the matter outside of court.
Under the proposed consent order, 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.
The DOJ has over two dozen active investigations into redlining underway around the country. It recently announced it has secured $107 million in judgments and enforcement actions to combat redlining in communities of color.
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