U.S. Department
of Justice
United States v. Lakeland Bank (D.N.J.)
On September 29, 2022, the court approved the entry of consent order resolving all the claims in United States v. Lakeland Bank (D.N.J.). On September 28, 2022, the United States filed the complaint and proposed settlement. The complaint alleged that from at least 2015 to 2021, Lakeland violated the Fair Housing Act and Equal Credit Opportunity Act on the basis of race, color, and national origin by failing to provide mortgage lending services to Black and Hispanic neighborhoods in the Newark, New Jersey, metropolitan area. The Department’s complaint also alleges that all of Lakeland’s branches were located in majority-white neighborhoods and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Newark. Under the settlement, the Bank will invest at least $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area; $750,000 for advertising, outreach and consumer education; and $400,000 for development of community partnerships to provide services that increase access to residential mortgage credit. Lakeland will also open two new branches in Black and Hispanic neighborhoods, including at least one in the city of Newark; ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark; employ a full-time Community Development Officer who will oversee the continued development of lending in Black and Hispanic neighborhoods in the Newark area; and maintain an expanded Community Reinvestment Act Assessment Area that includes Essex, Somerset and Union counties.
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