Jacksonville Initiates End of Redlining Case
Jacksonville, Florida. – Following the announcement by U.S. Attorney General Merrick Garland regarding a settlement with US Bank linked to redlining claims, a federal judge has concluded the consent order in the case. Recent reports highlight this development.
Related | Ameris Bank faced accusations of redlining, which involved denying loans to Black and Hispanic individuals in Jacksonville.
Ameris Bancorp, based in Atlanta, has also shared updates from its quarterly report submitted to the Securities and Exchange Commission on August 8.
US District Judge Marcia Morales Howard approved the closure of the consent order on May 20 after the US Department of Justice requested it, though this termination wasn’t made public at the time.
The Department of Justice noted in a court filing that US Bank has shown a commitment to remedial actions, supporting the case for ending the order.
In October 2023, Garland had earlier issued a consent order, alleging a systematic issue of discrimination against neighborhoods predominantly inhabited by Black and Hispanic residents.
Garland remarked that Ameris Bank had participated in practices reminiscent of redlining, where lenders typically reject or avoid loans based on the racial or ethnic backgrounds of neighborhood residents.
The DOJ asserted that the bank had established branches primarily in predominantly white areas rather than serving Black and Hispanic communities. Notably, 18 full-service branches were opened in other areas of Jacksonville without a single location in majority Black or Hispanic neighborhoods.
In a related instance, Garland pointed out that Ameris had sent out promotional materials that targeted low- to moderate-income areas, yet the promotional postcards featured only white models and reached 13 ZIP codes in Jacksonville without including anyone from majority Black and Hispanic neighborhoods.
Although the US denied these allegations, they opted for a settlement to sidestep potential litigation.
Under the consent order, the US had established several measures aimed at enhancing banking practices within Jacksonville, with the DOJ asserting the bank’s compliance was insufficient.
Ameris Bank confirmed it had met its obligations by contributing the required $7.5 million to a loan grant fund.
The terms of the settlement indicated that Ameris would allocate $7.5 million in mortgage grants over five years within the majority Black and Hispanic census areas of Jacksonville. They plan to invest $900,000 in focused marketing efforts over the same period, along with $600,000 for community development partnerships, offering resources such as financial education and foreclosure prevention services.
Overall, Ameris Bank has been deemed largely compliant with other financial requirements outlined in the consent order.
Since 2019, Ameris has maintained its headquarters in Atlanta after relocating from Jacksonville.
