Newsroom
September 11, 2015
Bank ends 'redlining' lawsuit with $1M settlement
Evans Bancorp, a local New York bank, agreed to pay nearly $1 million to end a lawsuit claiming the bank violated the Fair Housing Act by "redlining," or failing to offer mortgages to predominantly minority communities regardless of consumers' creditworthiness.
Last year, New York State Attorney General Eric Schneiderman filed suit against the bank in state court.
Authorities found that other banks in the Buffalo area, where Evans is located, lent far more generously, The New York Times reported, but Evans Bancorp said it would have likely prevailed in court had it not decided to settle.
"Throughout the course of this matter, no specific incidents were ever claimed, described or identified, and as such, we believe the underlying lawsuit was based upon unsubstantiated information, and Evans would have eventually prevailed in court," the bank said in a statement recorded by the NYT. "Regardless, Evans believes that this settlement is in the best interests of the community and our shareholders."
Part of the settlement will be used to support the development of affordable housing in Buffalo, the NYT reported. Evans Bancorp also agreed to invest $200,000 in advertising and marketing to reach Buffalo's East Side, a predominately African-America area.
Last year, New York State Attorney General Eric Schneiderman filed suit against the bank in state court.
Authorities found that other banks in the Buffalo area, where Evans is located, lent far more generously, The New York Times reported, but Evans Bancorp said it would have likely prevailed in court had it not decided to settle.
"Throughout the course of this matter, no specific incidents were ever claimed, described or identified, and as such, we believe the underlying lawsuit was based upon unsubstantiated information, and Evans would have eventually prevailed in court," the bank said in a statement recorded by the NYT. "Regardless, Evans believes that this settlement is in the best interests of the community and our shareholders."
Part of the settlement will be used to support the development of affordable housing in Buffalo, the NYT reported. Evans Bancorp also agreed to invest $200,000 in advertising and marketing to reach Buffalo's East Side, a predominately African-America area.
Share This
Related Resources
Add to Calendar 2024-03-26 09:00:00 2024-03-26 09:00:00 Ensuring Safety and Soundness with AI Listen On: Key Takeaways: [03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast. [08:25] Articulating a business use case and how partnering with a Fintech can support it is the first step in having a successful conversation with your board. [10:30] Talk to your account executive at your Fintech and have them help you overcome objections. [15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint. [15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly. Web NAFCU digital@nafcu.org America/New_York public
Ensuring Safety and Soundness with AI
preferred partner
Upstart
Podcast
Help Ease Your Members' Loan Payment Concerns
Planning, Auto Loans, Research
preferred partner
TruStage
Blog Post
The Value of Risk Management in Cybersecurity
preferred partner
DefenseStorm
Video
Add to Calendar 2024-03-13 14:00:00 2024-03-13 14:00:00 Digital Assets in Credit Unions: What Are the AML Risks? The digital asset boom is upon us. Like it or not, you have to deal with it effectively with your members, credit unions are on the frontlines of crypto adoption. Even the NCUA has been providing more and more guidance on different aspects of digital assets. You need to be prepared. How? By understanding the core basics of digital assets (specifically cryptocurrencies) the risks that it poses to credit unions and how you can be better prepared to handle issues when they arise. In this webinar, Understanding the Digital Assets Boom, you’ll focus on the basics of digital assets, a background of cryptocurrencies and types, the regulations that are established and the proposals that are being considered and how to position yourself to understand all of these components and include them in your day-to-day roles. Key Takeaways Comprehend the basics of digital assets including cryptocurrencies Understand currently established regulations and what the future has in store, specifically in 2024 Identify and remediate issues that arise in your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until March 13, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Digital Assets in Credit Unions: What Are the AML Risks?
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.