United States v. ESSA Bank (E.D. Pa.)

On June 9, 2023, the court entered a consent order in United States v. ESSA Bank & Trust (E.D. Pa.). The complaint, which was filed on May 31, 2023, alleged that ESSA violated the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA) by engaging in unlawful redlining in the Philadelphia Metropolitan Statistical Area by avoiding providing mortgage services to majority-Black and Hispanic neighborhoods and discouraging prospective applicants from those neighborhoods from applying for credit. The consent order requires ESSA to: (1) invest at least $2.92 million in a loan subsidy fund to increase access to credit in majority-Black and Hispanic neighborhoods; (2) spend an additional $125,000 on community partnerships and $250,000 on advertising, outreach, consumer financial education, and credit counseling in majority-Black and Hispanic communities; (3) hire two new mortgage loan officers to serve its existing branches in West Philadelphia; and (4) conduct a research-based market study to help identify the needs for financial services in communities of color.

Press Release (May 31, 2023)