Lakeland Bank, Redlining, New Jersey 2024

Newark, N.J. – Lakeland Bank has landed in hot water after allegations of ‘redlining’ in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey.

The U.S. Attorney’s Office for the District of New Jersey announced an agreement to resolve allegations that Lakeland Bank engaged in a pattern or practice of lending discrimination by ‘redlining’ in the Newark metropolitan area.

‘Financial institutions that refuse to provide mortgage lending services to communities of color not only contribute to the persistent racial wealth gap that exists in this country, but also violate federal law,’ Attorney General Merrick B. Garland said.

Lakeland Bank has agreed to settle this matter without contested litigation and will invest $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area.

The bank will also open two new branches in neighborhoods of color, including at least one in the city of Newark, and ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark.

Under the proposed consent order, Lakeland Bank will also maintain an expanded Community Reinvestment Act Assessment Area that includes Essex, Somerset and Union counties.

Defendant: Lakeland Bank

Criminal Charge: Redlining

City and State: Newark, New Jersey

Date: 2024

Sentence: Lakeland Bank agreed to settle the matter without contested litigation and will invest $12 million in a loan subsidy fund.

Affected individuals will benefit from the settlement, which includes the opening of two new branches in neighborhoods of color and the hiring of mortgage loan officers to serve those communities.

This is a critical step in closing the widening gaps in wealth between communities of color and others.

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