SUMMARY OF $5.7 MILLION CONSENT ORDER BETWEEN FIRST AMERICAN BANK AND THE DEPARTMENT OF JUSTICE
The United States' lawsuit alleges that First American Bank engaged in a pattern of discrimination on the basis of race, color, and national origin in the extension of residential real estate-related, consumer, and small business loans in the Chicago and Kankakee, Illinois areas. Specifically, the Complaint alleges that the Bank avoided marketing itself and doing business in minority census tracts because of the race or national origin of the residents. This is a discriminatory practice known as redlining, which violates both the Fair Housing and Equal Credit Opportunity Acts. The parties have agreed to resolve the suit through this Consent Order.
Nondiscrimination Injunction
First American Bank is enjoined from engaging in any practice which discriminates on the basis of race, color, or national origin in any aspect of a residential real estate-related or credit transaction.
Lending Initiatives - Monetary Relief
In order to remedy the alleged discrimination and ensure that all types of credit offered by First American are marketed and made available in minority residential areas on no less favorable a basis than in majority white residential areas, First American will:
• Open four new full-service branch offices in minority communities within three years. Three of the branches will be in majority African American census tracts and one in a majority Hispanic census tract.
• Invest a minimum of $5 million over five years in a special financing program for home mortgage, home equity, small business, community development, and consumer lending for residents of and small businesses located in minority census tracts. This special financing program will provide subsidized interest rates for qualified residents and businesses in minority census tracts of a minimum of ½ of a percentage point below the standard interest rate then set by the Bank for that product. The Bank will use its best efforts to make 30% of the subsidized loans each year to small businesses, including community development loans for small businesses located in minority census tracts.
• Spend a minimum of $400,000 over the five-year term of the Order to expand the Bank's marketing and outreach program by advertising in print media and on radio stations targeted to African American and Hispanic audiences, and by creating point-of-sale materials, published in English, Spanish, and other foreign languages commonly used in minority census tracts, to advertise its products and services. The Bank will also utilize direct mailings to residents and small businesses located in minority census tracts within the neighborhoods surrounding the four new bank branches required under the Order.
• Invest a minimum of $300,000 in consumer education over the term of the Order to provide credit counseling, financial literacy, business planning, and other related educational programs for residents of the minority census tracts.

• Deploy deposit-taking ATMs at all new branches, while locating off-premises ATMs on a nondiscriminatory basis, principally in high-rise office buildings or the central business district of Chicago.
• Employ a full-time person to direct its community lending program with responsibility to oversee development of residential, consumer and small business lending in minority census tracts and compliance with the Order.
• Provide fair lending training at least annually to all employees and agents involved in residential, consumer, and small business lending.
• Assess its progress in meeting the goals of the Order after two years by evaluating how its residential, consumer, and small business lending operations are serving the minority communities of the Chicago and Kankakee areas; reviewing the availability of government programs that could enhance its lending operations in minority communities; and meeting with community organizations involved in promoting fair lending, home ownership, and development in minority areas.
• Continue to include the entire Chicago and Kankakee Metropolitan Statistical Areas in its Community Reinvestment Act assessment area.
Monitoring Compliance
During the five-year term of the Order, First American will submit annually to the United States reports on its progress in fulfilling the goals of the Order, as well as the lending data it submits to the Federal Financial Institutions Examinations Council. First American will retain all records relating to its obligations under the Order and make them available to the United States upon request. If the Bank does not comply with the terms of the Order, which becomes effective when it is signed by the judge, the United States can seek court enforcement of its terms.
The Order will last for five years, with the option to terminate the Order at any time after it has been in effect for four years, if the United States concludes that the Bank has fully complied with all the provisions of the Order.

 
 Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 1 of 30 PageID #:1
' I i
'
IN THE UNITED STATES DISTRICT COURT FOR NORTHERN DISTRICT.OF ILLINOIS

UNITED STATES OF AMERICA, Plaintiff,
v. FIRST AMERICAN BANK,
Defendant.

Revised 6/23/04
JUDGE DER-YEGHIAYAN

of 1988, 42 U.S.C. §§3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. §§1691-1691f.
2. This Court has jurisdiction of this action pursuant to 28 U.S.C. §1345, 42 U.S.C. §3614, and 15 U.S.C. §1691(h). Venue is appropriate pursuant to 28 U.S.C. §1391.
3. Defendant First American Bank (hereinafter "First American" or "Bank") is an Illinois state-chartered full service bank headquartered in Carpentersville, Illinois, and doing business primarily in the State of Illinois. The Bank is a subsidiary of First American Bank Corporation, a bank holding company incorporated in 1984 under the laws of the State of Delaware.
4. First American offers the traditional services of a

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 2 of 30 PageID #:2
financial depository institution, including the receipt of monetary deposits; the financing of residential housing, commercial, and consumer loans; and other types of credit transactions. As of March 31, 2004, First American Bank had total assets of $1.9 billion and over $1.7 billion in deposits. First American was subject to the regulatory authority of the Federal Reserve Board (hereinafter "the Board") until November 24, 2003; since that time, the Federal Deposit Insurance Corporation has been its regulator.
5. The Bank is subject to the federal laws governing fair lending including the Fair Housing Act, the Equal Credit Opportunity Act, and the Community Reinvestment Act ("CRA"), 12 U.S.C. §§2901-2906, and the re'gulations promulgated under each of those statutes. The Fair Housing Act and the Equal Credit Opportunity Act prohibit financial institutions from discriminating on the basis of, inter alia, race, color, or national origin in their lending practices.
6. Beginning in January 2001, the Federal Reserve Board conducted an examination of the lending practices of First American Bank to evaluate its compliance with the Fair Housing Act, the Equal Credit Opportunity Act, and the Community Reinvestment Act. Based on information gathered in its examination, the Board determined that it had reason to believe that First American was engaged in a pattern or practice of dis-
- 2-

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crimination on the bases of race and national origin by redlining majority minority census tracts - defined as those with non-white populations of 50% or greater - in the Chicago and Kankakee, Illinois, metropolitan areas. The Board determined that the Bank was engaged in practices which prevented or discouraged the residents of those census tracts from obtaining equal access to residential, consumer, and small business credit because of the race, color, or national origin of the majority of the tracts' residents. The Board also lowered First American's CRA rating to "Substantial Noncompliance", the lowest possible. Of the 312 lending institutions the Board rated for CRA compliance between July 1, 2001, and June 30, 2002, First American was the only lender to receive that rating; the Board rated 40 lenders as "Outstanding", 270 "Satisfactory", and 1 "Needs to Improve".
7. Pursuant to 15 U.S.C. §1691e(g), the Board referred the matter to the Attorney General on May 14, 2002, for appropriate enforcement action, following the Board's determination as described in Paragraph 6.
8. First American Bank originated in the 1980s from the consolidation of eight smaller Chicago and Kankakee metropolitan area banks. By 1995, those banks had been further consolidated into three banks - First American Bank, Carpentersville; First American Bank, Kankakee; and First American Bank, Joliet. In September 1999, First American Bank Corporation consolidated the
-3 -

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charters of those three institutions into one charter, First American Bank, Carpentersville, Illinois. By January 2003, First American had grown to a network of thirty-four branch offices located throughout the Chicago/Kankakee region. Throughout this time period, the banks were all operated under the same management.
9. The Chicago Metropolitan Statistical Area (hereinafter "Chicago MSA"), as defined by the United States Census, includes nine counties- Cook (including the City of Chicago), DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will.
10. Residential housing data for the Chicago MSA show significant patterns of racial and ethnic segregation. According to 2000 Census data, the Chicago MSA is the third-most segregated metropolitan area in the nation for both African Americans and Hispanics of the metropolitan areas with populations of either group above 500,000. According to the 2000 Census, ninety percent (90%) of the Chicago MSA's African American residents and 76% of its Hispanic residents live in Cook County, while 68% of the MSA's African American residents and 53% of its Hispanic residents reside in the City of Chicago. 709 of the 800 majority minority census tracts in the Chicago MSA are majority African American, Hispanic, or combined African American/Hispanic. Eight census tracts are majority Asian and the other 83 minority tracts are a combination of various racial and ethnic minorities. See
-4-

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Map attached as Exhibit 1. 11. The Kankakee Metropolitan Statistical Area (hereinafter
"Kankakee MSA"), as defined by the United States Census, encompasses Kankakee County. The Kankakee MSA, located approximately sixty miles south of Chicago, has 26 census tracts, of which four are majority African American and include over 60% of the MSA's African American population. See Map attached as Exhibit 1.
12. In operating and extending the scope of its business, First American has acted to meet the residential, consumer, and business credit needs of predominantly white residential census tracts (census tracts with a population greater than 50% nonHispanic white) throughout the Chicago and Kankakee MSAs (hereinafter "the Chicago region"), and has avoided serving the lending and credit needs of majority minority tracts.
13. By the September 1999 consolidation, First American had expanded its business, including that of extending credit for residential real estate-related transactions, home equity, small business, and motor vehicle and other consumer loans, to substantial portions of the Chicago region. In addition to enlarging the geographic scope of the area within which it extends such credit, a major component of the Bank's expansion included the construction or acquisition of additional branch offices, which are designed both to better serve existing customers and to attract new customers to First American's services and products.
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14. First American has engaged in a race- and national origin-based pattern of locating or acquiring branch offices. It has located or acquired branch offices to serve the residential, consumer, and small business lending and credit needs of majority white census tracts but not those of majority minority tracts. In January, 2001, when the Federal Reserve Board commenced its compliance examination, First American had 30 branch offices in the Chicago region. None of those 30 branches are located in a majority minority census tract. According to the 2000 Census, the 30 branches are located in majority white census tracts in which minority populations range from 0.6% to 26.7%. See Map attached as Exhibit 2.
15. Over the next two years, the Bank continued its raceand national origin-based pattern of adding or acquiring new branch offices to serve only white communities. By January 2003, First American had 34 branches, with three new ones in Cook County and one in Lake County. All four of these new bank branches are located in majority white areas. See Map attached as Exhibit 3.
16. Race and national origin considerations also underlie the distribution of First American's Automated Teller Machines ( "ATMs"). As of January 2001, the Bank had 78 full-service ATMs (deposit taking and cash-dispensing) in the Chicago region. None of the Banks's full-service ATMs was located in a majority
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minority census tract. However, the Bank had chosen to locate 18 (approximately 10%) of its cash-dispensing-only ATMs (also called "CDMs") in minority census tracts. See Maps of ATMs and CDMs attached as Exbibits 4 and 5, respectively.
17. First American has actively solicited credit transactions through a variety of discriminatory means, including, but not limited to, the use of mortgage brokers primarily serving white communities in the Chicago region. As of January 2001, the Bank had a mortgage broker network of 122 offices, all but one in the Chicago MSA. Of that total, 97.5% (119) were located in majority white census tracts and only 2.5% (3) were located in minority tracts, each of which have small populations. See Map attached as Exhibit 6.
18. The unlawful consideration of race and national origin in the business practices and customer solicitation efforts of First American is also evident from its advertising and marketing practices, including, but no.t limited to, its radio and newspaper advertising focus. The Bank has directed its radio advertising to stations that target "general audiences", although many minority format stations exist in the Chicago MSA market. In advertising its products and services through the media, First American never utilized radio stations oriented to minority communities in the Chicago MSA until after the Board's criticism of those advertising practices.
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19. The Bank has also consistently directed its print media advertising to daily newspapers of general circulation and neighborhood and suburban weekly newspapers serving largely nonminority city neighborhoods and suburbs in the Chicago MSA. Until at least December 2002, the Bank had never advertised in minority-focused publications, many of which have larger circulations than some suburban newspapers the Bank has used.
20. The unlawful consideration of race and national origin in the business and customer solicitation efforts of the Bank is also evident from the community service, or assessment area, boundaries that First American has established under the Community Reinvestment Act. In establishing and modifying its assessment area over time, First American long excluded nearly all predominantly minority neighborhoods in the Chicago MSA. Pursuant to statutory direction, the Federal Reserve Board promulgated regulations to implement the CRA, 12 C.F.R. §228 ("Reg BB"). Under Reg BB, .as amended in 1997, a large bank's assessment area must generally consist of one or more metropolitan areas or contiguous political subdivisions, §228.41(b), unless that area would be extremely large, of unusual configuration, or divided by significant geographic barriers, §228.41(d). Reg BB further provides that, if a large bank's assessment area does not include entire political jurisdictions, its assessment area may not reflect illegal discrimination.
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_ __:.:_=--""-'-'-'"-""-'-"'''_,."-'_-","-'."---'-'--"-""'-"--'--------'-------- -------~- - - - - - -

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 9 of 30 PageID #:9
§228.41(e). First American's assessment area historically has not included entire political subdivisions, such as the City of Chicago or all of Cook and Kankakee Counties. The inclusion of these entire jurisdictions would not create an assessment area which would be extremely large, of unusual configuration, or divided by significant geographic barriers, the only exceptions specifically permitted by Reg BB.
21. Instead of defining its assessment area in accordance with Reg BB, First American has circumscribed its lending area in the Chicago region to exclude most majority minority neighborhoods. For example, in 1998, the Bank delineated six highly irregularly-shaped assessment areas, and, in late 1999, it reconfigured them to consist of two distinct areas of the Chicago and Kankakee MSAs. The Bank's Chicago MSA assessment area delineation excluded most minority communities in the Chicago MSA, despite a large number of them being adjacent to the nonminority tracts included in the assessment area. The Bank's 1999 Chicago MSA assessment area included portions of six counties Cook, DuPage, Kane, McHenry, Lake, and DeKalb - and its Kankakee assessment area included only a portion of that county. The 1999 Chicago MSA assessment area included 792 census tracts, of which only 51, 6.4%, had a population that was majority minority. In the Chicago MSA, over 34% of the census tracts were majority minority according to the 1990 census and over 42% were majority
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minority according to the 2000 census. The Bank has not provided any nondiscriminatory rationale for its irregular, atypical assessment areas, not even the most rudimentary objective methodology allegedly used to define them. See Map attached as Exhibit 7.
22. Only in March 2001, after the Federal Reserve Board's compliance examiners expressed concern to Bank management about the assessment areas' exclusion of virtually all minority census tracts, did First American change its assessment area delineation to include all of the Chicago and Kankakee MSAs.
23. First American Bank officials have also made statements to examiners from the Federal Reserve Bank of Chicago with respect to the Bank's lending practices which are based on racial and ethnic stereotypes. Among those statements were ones which: (a) indicated that the Bank did not provide the full range of its services and lending products to minority borrowers because they were allegedly not interested in the full range of services the Bank offered to white customers; (b) indicated that the Bank did not provide the full range of its services and lending products to minority borrowers because they were allegedly qualified only for government-subsidized lending programs; and, (c) equated making loans in low income or minority neighborhoods with making bad loans.
24. Analyses of First American's residential real estate-
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related loan applications for 1999-2001 show that First American has served the credit needs of predominantly white census tracts of the Chicago region to a significantly greater extent than it has served the credit needs of predominantly minority neighborhoods.
25. From 1999-2001, First American generated 10,365 residential real estate-related loan applications in the Chicago region, but only 705, or 6.8%, were secured by residential property located in majority minority census tracts. See Map attached as Exhibit 8.
26. In contrast, the percentage of such applications in the Chicago region which were secured by residential property located in majority minority census tracts for the aggregate of all Chicago and Kankakee MSA lending institutions was 20.8%, more than three times higher than First American's.
27. In connection with the Board's 2001 fair lending examination, First American identified a group of twelve "peer" institutions to which it recommended its lending performance be compared. Of the total residential real estate-related loan applications submitted to this "peer group" in each year from 1999-2001, First American's percentage from majority minority census tracts ranged from 6.2% to 7.3% annually. In contrast, the percentage of such applications for the aggregate of this self-selected "peer group" ranged from 16% to 26% each year.
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28. The geographic distribution of the dollar amounts of residential real estate-related loans funded by First American also demonstrates the consistently stark racial and national origin division in its residential lending activities. Between 1999 and 2001, First American funded nearly $287,892,000 in single-family residential real-estate related loans in the Chicago region. Only 4.5%, about $13,087,000, went to majority minority census tracts.
29. The business policies and practices of First American described in ~~12-24 above have achieved the Bank's objective of serving white communities and not minority communities, as further demonstrated by the Bank's overall residential, consumer, and small business lending over time.
30. In 1999, the Bank originated a total of 7,054 loans in the following categories - residential real estate-related, home equity, motor vehicle, other secured consumer, other unsecured consumer, small business, and other small business. Of that loan total, only 274, or 3.9%, were made in majority minority census tracts. In 2000, the Bank originated a total of 7,069 loans in those seven categories, of which only 308, or 4.4%, were made in majority minority census tracts. Of the combined total of 14,123 such loans the Bank originated in 1999 and 2000, only 4.1% were made in majority minority census tracts in a region where 34% of the census tracts were majority minority in 1990.
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31. For 1999-2000, the Bank originated 1,226 motor vehicle loans of which 97.6% (1196) were made in majority white census tracts and only 2.4% (30) in majority minority tracts. The strikingly low percentage of such loans in minority census tracts, despite the widespread ownership of automobiles by consumers in neighborhoods of varying racial or ethnic characteristics, evidences the Bank's intentional exclusion of minority communities from its lending operations. See Map attached as Exhibit 9.
32. Further demonstrating First American's redlining practices is the demographic distribution of its largest volume credit product - home equity loans. In 1999-2000, the Bank originated 6,365 home equity loans, of which 96.2% (6,123) were in majority white tracts and only 3.8% (242) were in minority tracts despite the fact that 33% of the Chicago region's housing stock is located in minority census tracts. See Map attached as Exhibit 10.
33. The Bank's CRA small business loan originations for 1999-2000 show the same discriminatory pattern and practice. Of the 1,330 CRA small business loans the Bank originated in the Chicago/Kankakee MSAs, 1,268 (95.3%) were made in majority white census tracts, and only 62 (4.7%) in minority tracts in a region which has among the highest number of minority-owned businesses in the nation, over 95,000. See Map attached as Exhibit 11.
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34. The totality of First American's policies and practices described herein constitute the redlining of majority minority neighborhoods of the Chicago and Kankakee MSAs as off-limits for the defendant's lending business. The Bank's policies and practices are intended to deny and discourage, and have the effect of denying or discouraging, an equal opportunity to residents of minority neighborhoods, on account of the racial and/or national origin composition of those neighborhoods, to obtain residential real estate-related credit, consumer credit, and business credit. These policies and practices are not justified by business necessity or legitimate business considerations.
35. The defendant's actions as alleged herein constitute: a. Discrimination on the basis of race, color, and national origin in making available residential real estate-related transactions, in violation of the Fair Housing Act, 42 U.S.C. §3605 (a); b. The making unavailable or denial of dwellings to persons, because of race, color, and national origin, in violation of the Fair Housing Act, 42 U.S.C. §3604(a); c. Discrimination on the basis of race, color, and national origin in the terms, conditions, or privileges of the provision of services or facilities in connection with the sale or rental
of dwellings, in violation of the Fair Housing Act, 42 u.s.c.
§3604(b); and
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d. Discrimination against applicants with respect to credit transactions, on the basis of race, color, and national origin, in violation of the Equal Credit Opportunity Act, 15 U.S.C. §1691 (a) (1).
36. The defendant's policies and practices as alleged herein constitute:
a. A pattern or practice of resistance to the full enjoyment of rights secured by the Fair Housing Act, 42 U.S.C. §§3601 et seq., and the Equal Credit Opportunity Act, 15 U.S.C. §1691e(h}; and
b. A denial of rights granted by the Fair Housing Act to a group of persons that raises an issue of general public importance.
37. Persons who have been victims of the defendant's discriminatory policies and practices are aggrieved persons as defined in 42 U.S.C. §3602(i) and as described in the Equal Credit Opportunity Act, 15 U.S.C. §1691(e) (i), and have suffered damages as a result of the defendant's conduct in violation of both the Fair Housing and the Equal Credit Opportunity Acts, as described herein.
38. The discriminatory policies and practices of the defendant were, and are, intentional and willful, and have been implemented with reckless disregard for the rights of residents of minority neighborhoods.
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WHEREFORE, the United States prays that the Court enter an ORDER that:
(1) Declares that the policies and practices of the defendant constitute a violation of Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. §§3601-3619, and the Equal Credit Opportunity Act, 15
u.s.c. §§1691-1691f;
(2) Enjoins the defendant, its agents, employees, and successors, and all other persons in active concert or participation with the defendant, from:
(A) Discriminating on account of race, color, or national origin in any aspect of their business practices; (B) Failing or refusing to take such affirmative steps as may be necessary to restore, as nearly as practicable, the victims of the defendant's unlawful practices to the position they were in but for the discriminatory conduct; (C) Failing or refusing to take such affirmative steps as may be necessary to prevent the recurrence of any discriminatory conduct in the future and to eliminate, to the extent practicable, the effects of the defendant's unlawful practices, including redefining its CRA assessment area in accordance with the CRA and its
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.. - - - - - - - - - - · · - - · .. -- - - - - - -

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 17 of 30 PageID #:17
implementing regulations, without regard to race, color, or national origin, and providing policies and procedures to ensure all segments of the defined area are served without regard to prohibited characteristics; (3) Awards monetary damages to all the victims of the defendant's discriminatory policies and practices for the injuries caused by the defendant, pursuant to 42 U.S.C. §3614 (d) (1) (B) and 15 U.S.C. §1691e(h); {4) Awards punitive damages to all the victims of the defendant's discriminatory policies and practices, pursuant to 42 U.S.C. §3614 (d) (1) (B) and 15 U.S.C. §1691e(h); and (5) Assesses a civil penalty against the defendant in an amount authorized by 42 U.S.C. §3614(d) (1) (C), in order to vindicate the public interest. The United States further prays for such additional relief as the interests of justice may require.
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Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 18 of 30 PageID #:18

John Ashcroft Attorney General

Patrick J. Fitzgerald United States Attorney

Assistant Attorney Genera Civil Rights Division

oa Laser istant United States
Attorney 219 South Dearborn Street Chicago, IL 60604
(312) 353-1857

Steven H. Rosenbaum Chief, Housing and Civil
Enforcement Section

Valerie R. O'Brian Burtis M. Dougherty
Attorneys U.S. Department of Justice Civil Rights Division Housing and Civil Enforcement
Section 950 Pennsylvania Avenue, N.W. washington, D.C. 20530
(202) 51.4-4751

- 18-

+ N
De Kalb
-~

Chicago and Kankakee MSAs Demographics 2000

McHenry

i g

~

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,•

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Percent Non-White By Census Tract

0.00% - 24.99%
j 25.00% - 49.99%

---·-·· 50.00% - 74.99%

-

75.00%- 100.00'l

Source: 2000 Census

c:J County Line

c:Jchicago
i!lliill!ll Water

• ..
U.S. Dept. of Justice Civil Rights Division Washington, D.C.
Exhibit 1

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 19 of 30 PageID #:19

+ N

Chicago and Kankakee MSAs First American Bank
Distribution of Original 30 Branch Locations as of Januarv. 2001

McHenry
•

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'9

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Percent Non-White By Census Tract
0.00%. 24.99% I'''V-<i•: 25.00% • 49.99%

-

50.00%. 74.99%

-

75.00%. 100.00%

Source: 2000 Census

• Branch Location
c::J County Line

c::Jchicago ' .,. ' Water

•U.S. Dept. of Justice
Civil Rights Division Washington, D.C.
Exhibit 2

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 20 of 30 PageID #:20

+ N
DeKalb
"'>

Chicago and Kankakee MSAs First American Bank
Distribution of 34 Branch locations as of Januarv. 2003

McHenry
•

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l -
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, .

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Kankakee
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Percent Non-White
By Census Tract

0.00%-24.99%
fill 25.00% - 49.99%

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-

75.00%- 100.00%

Source: 2000 Census

• Original Branch

+ New Branch
c:J County Line

c:Jchicago

-Water

tl\
~
U.S. Dept. of Justice Civil Rights Division Washington, D.C.

Exhibit 3

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 21 of 30 PageID #:21

+ N

10

0

Chicago and Kankakee MSAs First American Bank
Distribution of Full Service ATMs as of 12/31/2000

i .•
McHenry "'

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T•J.

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.Lake

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~ '.

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,. Kankakee

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Percent Non-White By Census Tract
0.00% - 24.99% 25.00% - 49.99%
llllii h:I,;,; 50.00%-74.99% 75.00% - 100.00% Source: 2000 Census
e Full Service ATMs D County Line D Chicago
-Water
• ..
U.S. Dept. of Justice Civil Rights Division Washington, D.C .
Exhibit 4

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 22 of 30 PageID #:22

+ N

Chicago and Kankakee MSAs

First American Bank

Distribution of Cash Dispensing (Only) ATMs as of 12/31/2000

J
l -'~ )
McHenry
"

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Percent Non-White By Census Tract
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e Cash Dispensing
(Only)ATMs
D County Line
0Chicago -Water
•U.S. Dept. of Justice
Civil Rights Division Washington, D.C.
Exhibit 5

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 23 of 30 PageID #:23

+ N
De Kalb
'

Chicago and Kankakee MSAs First American Bank
Distribution of Mortgage Broker Offices as of 12/31/2000

..>$ ' '

l

t

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Percent Non-White By Census Tract

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- - 75.00%- 100.00% Source: 2000 Census

• Mortgage Broker

.I

Offices
O County Line

QChicago

-Water

• . .
U.S. Dept. of Justice Civil Righ(s Division Washington, D.C.
Exhibit 6

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 24 of 30 PageID #:24

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 25 of 30 PageID #:25

Chicago and Kankakee MSAs First American Bank
Assessment Area as of September, 1999

·+·

,.,I•/ ~
McHenry

De Kalb
::~

,,
~
Kendall
..__,\::.
Grundy

10 5 o

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,.,
Kankakee

Percent Non-White By Census Tract
0.00% - 24.99% 25.00% - 49.99% ·~ 50.00% - 74.99% 75.00% - 100.00% Source: 2000 Census ,j
tz:Z3 Assessment Area
D County Line D Chicago
l!llllWater
•U.S. Dept. of Justice
Civil Rights Division Washington, D.C.
Exhibit 7

+ N

Chicago and Kankakee MSAs First American Bank
Distribution of HMDA Loans, 1999·2001

••• • • •

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.

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Percent Non-White

By Census Tract

0.00%- 24.99%

25.00% - 49.99%

~~'i 50.00%- 74.99%

- 75.00% - 100.00%

Source: 2000 Census
e HMDALoan

}

Originations
D County Line

QChicago ····z~i Water

tP\ 'lSI
U.S. Dept. of Justice Civil Rights Division Washington, D.C .

Exhibit 8

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 26 of 30 PageID #:26

Chicago and Kankakee MSAs First American Bank
Distribution of Optionally Reported Consumer Auto Loans, 1999-2000

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 27 of 30 PageID #:27

+ N

• De Kalb
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• •

Percent Non-White By Census Tract

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- 75.00%- 100.00%

Source: 2000 Census

"\

• Consumer

j

Auto Loans

D County Line

0Chicago
E,':' j Water

• . .
U.S. Dept. of Justice Civil Rights Division Washington, D.C.

Exhibit 9

+ N
• •

Chicago and Kankakee MSAs First American Bank
Home Equity Loans, 1999-2000
:..,...
•

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Percent Non-White By Census Tract
0.00% - 24.99% 25.00% - 49.99% !i!&ff~il 50.00%- 74.99% - 75.00%- 100.00% Source: 2000 Census
e Home Equity Loans
D County Line
0Chicago ialliii!Water
•U.S. Dept. of Justice
Civil Rights Division Washington, D.C.
Exhibit 10

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 28 of 30 PageID #:28

+ N

Chicago and Kankakee MSAs

First American Bank

CRA Loans, 1999-2000

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Percent Non-White By Census Tract
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- 75.00%-100.00%

Source: 2000 Census

}

e CRA Loans

D County Line

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•..
U.S. Dept. of Justice Civil Rights Division Washington, D.C.

Exhibit 11

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 29 of 30 PageID #:29

If JS44 8

Case: 1:04-cv-04585 Document #: 1 Filed: 07/13/04 Page 30 of 30 PageID #:30

~::~S::,~,il ''""'"'='" "''"" ,.,:~~~~,~~~~=~~"~'~~~~of ''" '"'" rules

of

court.

This

form,

'"d "'
approved

'"'"m"ioo
by the Judicial

Conference

of

the

United

States

in

September

1974,

is

required

for

pl.,dio" " : ; , , . , . " "qoi"d by l•w, """" P<O'idod by loo•l
the use of the Clerk of Court for the purpose of initiating the civil docket

,, sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)

r .• r

F I (a) PLAINTIFf.S

':... ..DEFENDANTS

UNITED STATES OF AMERICA' ..

! -,,;~· ', ') FIRST AMERICAN BANK',,c;;:-
rsv'lO ·r·r•;l 'n, '-' ,

(b) COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF------
(EXCEPT IN U.S. PLAINTIFF CASES)

COUNTY OF RESIDENCE OF FIRST LISTED DEFENDANT_.cCc.O.c_:O.:ck:c__ __ (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF.LAND INVOLVED

fl/ (c) ATTORNEYS (FIRM NAME, ADDRESS, AND TELEPHONE NUMBER) .

DG U.S. Department of Justice

"

U.S. Attorney Office

ATTORNEYS (IF KNOWN
DER-YEGHIAYI4N

219 S. Dearborn Street, 5th Floor Chicago, Illinois 60604

I' AG!STRATE JUDGE

Attn.: Joan Laser, AUSA (312) 353-1857

15""":'\I.I)INE SCAT BROWN.

II. BASIS OF JURISDICTION

(PLACE AN K IN ONE BOX ONLY}

-;{. 1 U.S. Government Plaintiff

0 3 Federal Question (U.S. Government Not a Party)

0 2 U.S. Government Defendant

0 4 Diversity (Indicate Citizenship of Parties in Item Ill)

Ill. CITIZENSHIP OF PRINCIPAL PARTIES '"A"'"'" "o"eo'

(For Diversity Cases Only)

FOR PLAINTIFF AND ONE BOX FOR DEFENDANT)

Citizen of This State

PTF OEF 01 01

Citizen of Another State 02 02

Citizen or Subject of a Foreign Country

03 03

Incorporated or Principal Place of Business In This State
Incorporated and Principal Place of Business ~~~~n.~,t~~r S~te
Foreign Nation · ,.._ .. .J••-,). ;.. "~'·· . /

PTF OEF 04 04
05 05 06 06

IV. CAUSE OF ACTION u.s. (CITE THE

CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUSE.

00 NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY.)

42 U.S.C. §§ 3601-3619 and 15 U.S.C. § 1691-169lf discrimination in lending

v. NATURE OF SUIT (PLACE AN X IN ONE BOX ONLY)

CONTRACT
0 110 11'\Surance 0 120 Marine 0 130 Miller Act 0 140 Negotiable Instrument 0 150 Recovery of 0\lerpayment
& Enforcement of Judgment
0 151 Medicare Act 0 152 Recovery of Defaulte<l
Student Loans (Excl. Veterans)
0 153 Recovery of 0\lerpayment
of Veteran's Benefits
0 160 Stockholders· Suits 0 190 Other Contract 0 195 Contract Product liability
REAL PROPERTY
0 210 Land Condemnation 0 220 FOI"eclosure 0 230 Rent Lease & Ejectment 0 240 Torts to Land 0 245 Tort Product Liability 0 290 All Other Real Property

TORTS

PERSONAL INJURY 0 310 Airplane D 315 Airplane Product
Uabi~ty
0 320 AssauH, Ubel &
Stander
0 330 Fe<reral Employers'
Liability
0 340 Marine 0 345 Marine Product
Liability
0 350 Motor Vehicle 0 355 Motor Vehicle
Product Uability
0 360 Other Personal
Injury

PERSONAL INJURY
0 362 Personal Injury-
MOO Malpractice
0 365 Personal Injury-
Product Liability
0 368 Asbestos Personal
Injury Product Uabi~ty
PERSONAL PROPERTY 0 370 Other Fraud 0 371 Truth in Lending 0 380 Other Personal
Property Damag:e
0 385 Property Damage
Product Liability

CIVIL RIGHTS 0 441 Voting ~ 442 Employment
443 Housing/
Accommodations ,.., 444 WeHare
WO Other Civil Rights
'-

PRISONER PETITIONS
D 510 Motions to Vacate
Senlenoo
Habeas Corpus:
0 530 General 0 535 Death Penalty 0 540 Mandamus & Other 0 550 Olher

FORFEITURE /PENALTY
~ ~10 Agriculture
0 620 Other Food & Drug
D 625 Drug Related Seizure of
Property 21 USC BBI
D 630 Liquor Laws D 640 R.R & Truck. D 650 Airline Regs
nD 660 Occu~tlonal Sa aty!Health 1690 Other
LABOR
0 710 Fair Labor Standards
"" 0 720 Labof/Mgmt. Relations
0 730 Labor/Mgmt.
Reporting & Disclosure Act
D 740 Railway Labor
"" 0 790 Other Labor Utigelioll
0 791 Empl. Ret. Inc.
Sewrity Act

BANKRUPTCY
0 422 Appeal
26 usc 156
0 423 Withdrawal
2B usc 157
PROPERTY RIGHTS
D 820 Copyrights 0 830 Patent 0 840 Trademark
SOCIAL SECURITY 0 861 HIA (139511) 0 862 Black lul'lQ (923) 0 863 DIWC/DIWW (405(g)) 0 864 $SID Tille XVI 0 865 RSI (405(g))
FEDERAL TAX SUITS
0 870 Taxes (U.S. Plainlitr
or Defendant)
0 871 lAS-Third Party
26 usc 7609

VI. ORIGIN
)( 1 Original Proceeding

0 2 Removed from State Court

(PLACE AN x IN ONE BOX ONLY)

Transferred from

0 3 Remanded from 0 4 Reinstated or 0 5 another district

Appellate Court

Reopened

(specify)

0 6 Multidistrict Litigation

OTHER STATUTES
0 400 State
Reapportionment
0 41 0 Antitrust 0 430 Banks and Banking
' 0 450 Commerce/ICC Aetes/et
0 460. Deportation 0 470 Racketeer Influenced and
Corrupt Organizations
0 810 Selective Service 0 850 Securities/Commodities/
Exchange
0 875 Customer Challenge
12 usc 3410
0 891 Agricu~urel Acts 0 892 ECQnomic Stabilization
Act
0 893 Environmental Matters 0 894 Energy Allocation Act 0 895 Freedom of
Information Act
D 900 AppealofFeeDeterminati
Under Equal Access to Justice
0 950 Constiltltionality of
State Statutes
0 890 Other Statutory
Actions
Appeal to Dtstnct
0 7 Judge from
Magistrate
Judgment

VII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION

COMPLAINT:

0 UNDER F.R.C.P. 23

DEMAND$

Ch'eck YES only if demanded in complaint:

JURY DEMAND:

o '\!(YES

NO

VIII. RELATED CASE(S) <See ;nwuclions), IF ANY

JUDGE - - - - - - - - - - - D O C K E T NUMBER_ _ _ _ _ _ _ _ __

DATE
July 13, 2004

SIGNATURE OF ATTORN
Joan Laser

UNITED STATES DISTRICT COURT

 
 Case: 1:04-cv-04585 Document #: 5 Filed: 07/16/04 Page 1 of 1 PageID #:77
AO 450(Rcv. 5/85)Judgment in a Civil Case
United States District Court
Northern District of Illinois
Eastern Division

USA v.
First American Bank

JUDGMENT IN A CIVIL CASE Case Number: 04 C 4585

D Jury Verdict. This action came before the Court for a trial by jury. The issues have been tried and the jury rendered its verdict.

•

Decision by Court. This action came to trial or hearing before the Court. The issues

have been tried or heard and a decision has been rendered.

IT IS HEREBY ORDERED AND ADJUDGED that the parties having entered into a consent order, this matter is hereby dismissed. The Court shall retain jurisdiction for the duration of the consent order to enforce the terms of the order, after which time the case shall be dismissed with prejudice.

Date: 7/16/2004

Michael W. Dobbins, Clerk of Court
Clerk

 
 Case: 1:04-cv-04585 Document #: 6 Filed: 02/13/09 Page 1 of 2 PageID #:78

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS

UNITED STATES OF AMERICA, Plaintiff,
v. FIRST AMERICAN BANK,
Defendant.

)

)

)

CIVIL ACTION NO.

)

04 c 4585

)

)

Judge Der-Yeghiayan

)

Magistrate Judge Brown

)

)

JOINT MOTION TO TERMINATE CONSENT ORDER Pursuant to Rule 60(b)(6), Federal Rules of Civil Procedure, and Section V of the 2004 Consent Order entered in this case, the United States and First American Bank ("the Bank") jointly move the Court for an order terminating the current Consent Order in this case. On July 16, 2004, this Court entered a Consent Order resolving the United States' claims regarding the Bank's compliance with the Fair Housing Act, 42 U.S.C. §§ 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691-1691f. That Order was to terminate in October 2009, three months after submission of the Bank's fifth annual report to the United States, or at any time after the Order had been in effect for four years uponjoint motion ofthe parties, ifthe Bank had fully complied with all the terms of the Order. The parties agree that First American Bank has fulfilled its affirmative obligations under the 2004 Consent Order and is in substantial compliance therewith. On that basis, the parties jointly move this Court to terminate the Consent Order pursuant to the provisions ofthat Order and ofRule 60(b)(6), which provides that a court may relieve a party from a final judgment or order for "any other reason that justifies relief." A proposed order in word perfect has been e-mailed.

Case: 1:04-cv-04585 Document #: 6 Filed: 02/13/09 Page 2 of 2 PageID #:79

For First American Bank:

~~~/

Sean Rahilly, Esq.

~

1660 Louis Avenue

Elk Grove Village, IL 60007

(847) 586-2284

Srahilly@firstambank.com

Respectfully submitted,
For tbe United States:
~!;Dd1J/
Burtis M. Dougherty Attorney Housing & Civil Enforcement
Section Civil Rights Division U.S. Department of Justice 950 Pennsylvania Ave., NW (Northwestern Building) Washington, DC 20530 Tel: (202) 514-4737 Fax: (202) 514-1116 Burtis.M.Doughertv@usdoj.gov
Patrick J. Fitzgerald United States Attorney

s/ 1oan Laser Joan Laser Assistant U.S. Attorney 219 Soutb Dearborn Street Chicago, IL 60604 Tel: (312) 353-1857 Fax: (312) 886-4073 Joan.Laser@usdoj .gov

-2-

 
 Case: 1:04-cv-04585 Document #: 6-2 Filed: 02/13/09 Page 1 of 1 PageID #:80

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS

UNITED STATES OF AMERICA, Plaintiff,
v. FIRST AMERICAN BANK,
Defendant.

)

)

)

CIVIL ACTION NO.

)

04 C 4585

)

)

Judge Der-Yeghiayan

)

Magistrate Judge Brown

)

)

)

ORDER Upon consideration of the Parties’ Joint Motion to Terminate the Consent Order entered in this matter by this Court on July, 16, 2004, it is: ORDERED that the Joint Motion to Terminate the Consent Order be and hereby is GRANTED; and it is FURTHER ORDERED that the Consent Order be and it is hereby terminated; and it is FURTHER ORDERED and ADJUDGED that this case be and it is hereby DISMISSED with prejudice.

SO ORDERED this day of

, 2009.

Samuel Der-Yeghiayan United States District Judge

 
 Case: 1:04-cv-4585 As of: 09/26/2012 07:19 PM CDT 1 of 2
BROWN,TERMED
United States District Court Northern District of Illinois − CM/ECF LIVE, Ver 5.0.3 (Chicago)
CIVIL DOCKET FOR CASE #: 1:04−cv−04585

USA v. 1st Amer Bk Assigned to: Honorable Samuel Der−Yeghiayan Demand: $0 Cause: 42:405 Fair Housing Act
Plaintiff

Date Filed: 07/13/2004 Date Terminated: 07/16/2004 Jury Demand: Plaintiff Nature of Suit: 443 Civil Rights: Accommodations Jurisdiction: U.S. Government Plaintiff

United States of America

represented by Burtis M Dougherty Department of Justice P.O. Box 65998 Washington, DC 20035−5998 (202)514−4713 Email: burtis.m.dougherty@usdoj.gov ATTORNEY TO BE NOTICED

Joan Cagen Laser United States Attorney's Office (NDIL) 219 South Dearborn Street Suite 500 Chicago, IL 60604 (312) 353−1857 Fax: (312)886−4073 Email: joan.laser@usdoj.gov ATTORNEY TO BE NOTICED

V. Defendant First American Bank

represented by Jonathan S. Feld Katten Muchin Rosenman LLP 525 West Monroe Street Chicago, IL 60661 (312) 902−5200 Email: jonathan.feld@kattenlaw.com LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 07/13/2004
07/16/2004 07/16/2004 07/16/2004

# Docket Text
1 COMPLAINT (Attachments); jury demand − Civil cover sheet − ( Summons(es), original and one copy, issued.) ( Documents: 1−1 and 1−2) (ar) (Entered: 07/14/2004)
2 ATTORNEY APPEARANCE for defendant 1st Amer Bk by Jonathan S. Feld. (jmp) (Entered: 07/19/2004)
3 ANSWER by defendant 1st Amer Bk to plaintiff's complaint [1−1]. (jmp) (Entered: 07/19/2004)
4 MINUTE ORDER of 7/16/04 by Hon. Samuel Der−Yeghiayan : The parties having entered into a consent order, this matter is hereby dismissed. The Court shall retain jurisdiction for the duration of the consent order to enforce the terms of the order, after which time the case shall be dismissed with prejudice. All pending dates ane motions are hereby stricken as moot. (Entered Consent Order (Attachment)). terminating case Mailed notice (jmp) (Entered: 07/19/2004)

Case: 1:04-cv-4585 As of: 09/26/2012 07:19 PM CDT 2 of 2

07/16/2004 02/13/2009
02/13/2009
02/19/2009

5 ENTERED JUDGMENT (jmp) (Entered: 07/19/2004)
6 MOTION by Plaintiff United States of America, Defendant First American Bank To Terminate Consent Order (Joint) (Attachments: # 1 Order)(Laser, Joan) (Entered: 02/13/2009)
7 NOTICE of Motion by Joan Cagen Laser for presentment of motion for miscellaneous relief 6 before Honorable Samuel Der−Yeghiayan on 2/19/2009 at 09:00 AM. (Laser, Joan) (Entered: 02/13/2009)
8 MINUTE entry before the Honorable Samuel Der−Yeghiayan:Motion by Plaintiff United States of America, and Defendant First American Bank To terminate consent order 6 is granted. Motion hearing held on 2/19/2009 6 . Mailed notice (tlp, ) (Entered: 02/19/2009)

 
 FOR IMMEDIATE RELEASE TUESDAY, JULY 13, 2004 WWW.USDOJ.GOV

CRT (202) 514-2008 TDD (202) 514-1888

CHICAGO BANK CHARGED WITH DISCRIMINATORY “REDLINING” LENDING

WASHINGTON, D.C. - The Justice Department today announced the filing and resolution of a lawsuit against a Chicago lender. First American intentionally avoided serving the credit needs of residents and small businesses located in minority neighborhoods, a practice commonly referred to as redlining. First American has agreed to invest $5.7 million and open new branches in these minority neighborhoods to settle the lawsuit.
"All Americans should be able to access the financial markets without regard to their race,” said R. Alexander Acosta, Assistant Attorney General for Civil Rights. "We will continue to oppose vigorously any discrimination in credit and lending services."
The Justice Department’s complaint, filed in federal court in Chicago, alleges that First American intentionally failed to market and provide lending products and services to predominantly minority neighborhoods because of race. The complaint notes that not one of First American’s 34 branch offices is located in a minority area. The complaint alleges that statements by First American officials indicate that the Bank’s business practices were racially and ethnically motivated.
The Justice Department also filed today in federal district an enforceable settlement agreement resolving the complaint. Under the agreement, which remains subject to court approval, First American is enjoined from discriminating on the basis of race, color, or national origin in any aspect of a residential real estate-related or credit transaction. In the settlement, First American agrees that over the next five years it will:
open four new full-service branch offices in areas affected by its allegedly discriminatory conduct; invest $5 million in a special financing program under which it will offer residents and small businesses in predominantly minority neighborhoods, residential real estate-related, consumer, and small business loans at subsidized interest rates - at least one-half of a percentage point below that which the Bank would normally charge; spend at least $400,000 to advertise its products in media and direct mailings targeted to generate loan applications from neighborhoods allegedly discriminated against; provide a minimum of $300,000 to develop and implement a comprehensive consumer education program in credit counseling, financial literacy, and business planning for residents and small businesses in

predominantly minority areas.
“Home ownership is the American dream, and the ability to gain credit is crucial to the realization of that dream and to the development of all communities,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. “Redlining robs residents of minority communities of their equal right to a better life. As this case shows, it will not be tolerated.”
The Federal Reserve Board referred this matter to the Department of Justice for enforcement after its 2001 periodic examination of the Bank gave the Board reason to believe that First American was engaged in discriminatory lending practices by redlining minority census tracts in the Chicago and Kankakee areas. Since November 2003, the Federal Deposit Insurance Corporation has been the Bank’s regulator.
The case resulted from a joint investigation conducted by the Civil Rights Division of the Department of Justice and the Office of the United States Attorney for the Northern District of Illinois. First American Bank cooperated fully in the investigation. A copy of the Consent Order, as well as additional information about fair lending enforcement by the Department of Justice, can be obtained from the Justice Department website at www.usdoj.gov/crt/housing.
###
04-478