Redlining is 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.

On October 19, 2023, the U.S. Attorney’s Office filed a proposed settlement in federal district court. The U.S. Attorney for the Middle District of Florida had negotiated the settlement with Ameris Bank (Ameris) to resolve a complaint under investigation by the U.S. Department of Justice (DOJ). The settlement is subject to court approval. Ameris is a state-chartered financial institution headquartered in Atlanta, Georgia. DOJ alleged that Ameris had violated the anti-discrimination provisions of the Fair Housing Act and the Equal Credit Opportunity Act.

DOJ found that Ameris, from 2016 through 2021, avoided providing home loans and other mortgage services in majority-Black and Hispanic neighborhoods in Jacksonville, Florida. Ameris had located and maintained its branch offices in majority-white neighborhoods. Ameris had no branch office located in a majority-Black and Hispanic census tract in Jacksonville. Ameris knew its branches were not serving the credit needs of majority- Black and Hispanic areas in Jacksonville, but did not take steps to address this failure.

Ameris’ loan officers targeted majority-white areas to generate loan applications, and avoided marketing, advertising, and outreach in majority-Black and Hispanic areas. From 2016 through 2021, Ameris’ peer lenders generated applications from residents of majority-Black and Hispanic census tracts at over three times the rate of Ameris. The disparity between the rate of applications generated by Ameris and the rate generated by its peer lenders from majority-Black and Hispanic areas was statistically significant, not caused by chance.

Ameris failed to assign any mortgage bankers to majority-Black and Hispanic areas, failed to supervise its mortgage bankers to ensure coverage of the areas, and failed to take any meaningful efforts to compensate for its lack of branches or outreach in the areas. Ameris effectively denied equal access to home loans for those residing in, or seeking credit for properties located in the areas.

DOJ characterized Ameris’ policies and practices as the unlawful redlining of majority-Black and Hispanic communities in Jacksonville, on the bases of the race, color, and national origin of the residents of those communities. Some of these communities had first been redlined in the 1930s.
DOJ maintained that Ameris’ conduct was not justified by business necessity and was not necessary to achieve a substantial, legitimate, non-discriminatory interest. In DOJ’s view, Ameris had engaged in discrimination that was intentional and willful and was implemented with reckless disregard for the rights of individuals based on their race, color, and national origin.

DOJ has now announced a $9 million agreement with Ameris to resolve the allegations that the Bank engaged in redlining Black and Hispanic neighborhoods in Jacksonville. The agreement is designed to make homeownership a reality for minority families who had been unfairly denied access to credit. In accordance with the settlement, Ameris will provide financial remedies to Jacksonville’s underserved communities, as follows.

• 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.