Home USA News Justice Department announces measures to solve lending - Press Releases

Justice Department announces measures to solve lending – Press Releases

The Department of Justice announced today that it has entered into an agreement to resolve allegations that Memphis-based Evolve Bank & Trust committed lending discrimination based on race, gender and national origin in the pricing of its residential mortgage loans in 2014 until 2019.

Evolve Bank maintains mortgage lending offices and provides mortgage lending services in 15 states across the country. As part of the department’s settlement, which is subject to district court approval, Evolve Bank will establish a $1.3 million settlement fund to compensate affected borrowers. Evolve Bank will also pay a $50,000 civil penalty.

“This settlement will provide the relief they deserve to thousands of borrowers who have been discriminated against because of Evolve Bank’s pricing policies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Division of Civil Rights. “This case marks the latest step by the Justice Department to protect Americans from illegal lending practices and shows that we will hold lenders accountable for the impact of their discriminatory practices.”

“This settlement provides a measure of justice for those wronged by Evolve Bank’s discriminatory actions,” said US Attorney Kevin G. Ritz for the Western District of Tennessee. “I also hope it sends a strong message to banks and other lenders that the Justice Department does not condone unlawful impediments to residential mortgage lending.” It is high time these practices stopped.”

The department began its investigation after the Federal Reserve System Board of Governors referred the matter. In accordance with federal law, the board has long referred matters involving potential fair lending violations to the Department of Justice.

According to the complaint, the Justice Department alleges that Evolve Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from…

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