Offers compensation for communities of color that have experienced discrimination by mortgage lending.
The U.S. Department of Justice has investigated allegations of discrimination by banks and lending companies through the Combatting Redlining Initiative. Though redlining is now illegal, some organizations around the nation have reportedly quietly continued the practice.
Redlining is a practice in which banks and real estate companies “redline” areas on a map where they will not invest. These acts of discrimination were especially overt in the mid-1900s, creating the locations and borders of low-income black and minority neighborhoods seen in major cities to this day.
The Justice Department announced the first results of ongoing investigations, settling legal allegations of redlining with Ameris Bank in Jacksonville, Florida. The settlement procures $107 million to distribute to those who have been affected by the current practice of redlining.
“As today’s case makes clear, redlining is not just a relic of the past,” said Attorney General Merrick Garland. “This work is just the beginning – the Justice Department currently has over two dozen active investigations into redlining, spanning neighborhoods across the country.”
As the Lord Leads, Pray with Us…
- For wisdom for Attorney General Garland as he heads the Justice Department.
- For DOJ attorneys and prosecutors as they seek to hold companies accountable for discriminatory practices.
Sources: Department of Justice
