New Jersey federal judge has declined to sign off on the conclusion of a $13 million redlining deal between Lakeland Bank and the U.S. Department of Justice, ruling that the bank's existing compliance with the deal does not justify its early termination.
U.S. District Judge Claire C. Cecchi on Friday denied the federal government's bid to terminate its 2022 consent order with Lakeland Bank that resolved allegations that the bank discriminated against Black and other minority borrowers in the Newark area, ruling that the government and the bank did not provide enough evidence to meet the burden for the early termination of a consent decree.
Judge Cecchi noted in her decision that Lakeland has distributed only about 65% of the $12 million loan subsidy fund for residents established under the deal and that the consent order required a number of provisions — such as spending $150,000 on marketing and outreach — to be completed each year of the deal's five-year term.
The federal government argued that Lakeland is committed to fair lending compliance, that it would spend all the required amounts related to the loan subsidy fund and meet all of its other financial commitments under the deal.
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