Skip to main content

NY AG Settles Redlining Case With Evans Bank

Phil Hall
Sep 11, 2015
Settlement Handshake Pic/Credit: anyaberkut

New York Attorney General Eric T. Schneiderman has announced a settlement of redlining charges aimed at Hamburg, N.Y.-based Evans Bank NA and its parent company, Evans Bancorp Inc.

Schneiderman’s office had accused Evans of discriminatory practices involving mortgage lending in the predominantly African-American communities within the East Side section of Buffalo, N.Y. As part of the settlement, Evans will revise its Buffalo-area home loan originations to include these neighborhoods, which Schneiderman asserted were intentionally omitted from the lender’s outreach.

The agreement also required the company to establish a $475,000 fund to promote homeownership and financial literacy and a $100,000 grant program to encourage homeownership in Buffalo’s East Side neighborhoods. Evans will also invest $200,000 in advertising and marketing designed to reach potential applicants and residents in the East Side neighborhoods and pay $50,000 to Schneiderman’s office to cover costs and fees relating to the case.

“It is essential that all New Yorkers, regardless of the color of their skin or the racial makeup of their neighborhoods, be afforded equal access to our banking systems—and the basic benefits of obtaining a mortgage," Schneiderman said in a press statement.

The settlement did not require the company to acknowledge wrongdoing. In a separate statement, Evans Bancorp President and CEO David J. Nasca insisted the agreement was reached so the company could “concentrate on our core business without distraction,” adding that the financial aspects of the settlement were “similar to investments that we had already planned and are expected to further complement the significant redevelopment projects in which Evans is currently engaged.”

Sep 11, 2015
R.I. Mortgage Broker Pleads Guilty To $6M Ponzi Scheme

Decade-long scheme was used to finance a lavish lifestyle.

Regulation and Compliance
Sep 30, 2022
Fannie Mae Names Almodovar Its New CEO

Financial services veteran brings more than 30 years experience and a strong commitment to affordable housing.

Regulation and Compliance
Sep 29, 2022
OCC Fines Sterling Bank & Trust $6M Over Mortgage Fraud

Bank, parent company remain under criminal investigation by Justice Department and SEC.

Regulation and Compliance
Sep 27, 2022
Federal Court Shutters Sham Mortgage Relief Operation

FTC, California agency accuse 2 business owners of scam that cost consumers millions of dollars.

Regulation and Compliance
Sep 22, 2022
CFPB Seeks Input On Creating New Mortgage Products

Agency seeks information on refinances, mortgage products to promote competition and support household financial stability.

Regulation and Compliance
Sep 22, 2022
The Fed Raises Interest Rate 0.75% For The 3rd Time

Chairman said housing market may have to go through "a correction" to return to balance.

Regulation and Compliance
Sep 21, 2022