NEWARK, NJ, October 31, 2024--New Jersey Citizen Action (NJCA) issued the following statement today in response to New Jersey Attorney General Matthew Platkin and the New Jersey Division on Civil Rights’ (DCR) report on October 29 regarding the unlawful mortgage redlining and discrimination by Republic First Bank, doing business as Republic. The report highlights an investigation initiated by DCR and the New Jersey Division of Law (DOL), which found that Republic engaged in a pattern and practice of redlining Black, Hispanic, and Asian communities in New Jersey in violation of the New Jersey Law Against Discrimination (LAD).
New Jersey is no stranger to redlining. The NJ AG’s report comes on the heels of a recently announced $15 million settlement entered into by OceanFirst Bank and the United States Department of Justice (DOJ) and United States Department of Housing and Urban Development (HUD) last month. That settlement was made in response to allegations that the bank had engaged in a “pattern or practice of lending discrimination by redlining predominantly Black, Hispanic and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties in New Jersey.” Prior to that, the DOJ entered into a $13 million agreement with then-Lakeland Bank in 2022 (which has since been acquired by Provident Bank), and a $27 million settlement with then Hudson City Savings Bank (which was later acquired by M&T Bank).
“Unfortunately, redlining persists to this day here in New Jersey, as evidenced by the Attorney General’s report on the discriminatory lending practices of Republic First Bank,” said Leila Amirhamzeh, Director of Community Reinvestment for NJCA. “NJCA commends Attorney General Platkin and the NJ Division on Civil Rights for their proactive approach and commitment to fair lending. Redlining is not a problem of the past. Lack of access to fair home mortgage loans and other financial products is a major driver of systemic inequity and only increases New Jersey’s larger than average racial wealth gap.
“The now-failed Republic First Bank, which was a depository bank insured by the Federal Deposit Insurance Corporation (FDIC), was closed by regulators in 2024 due to safety and soundness concerns. The FDIC was then appointed the receiver of the failed bank, and subsequently entered into an agreement with Fulton Bank, N.A., under which Fulton assumed Republic’s assets and loan portfolio.
“As disappointed as we are to hear about Republic’s discriminatory practices, we look forward to the opportunity to work with Fulton Bank, given our history of partnering together to promote affordable homeownership opportunities in low- and moderate-income communities across New Jersey. While Fulton only recently acquired the now-closed Republic’s assets, we are confident we can begin working with them to ensure the needs of New Jersey communities, including those communities harmed by Republic, are being met.
“This and other recent cases of redlining only further confirm the need to strengthen Community Reinvestment Act (CRA), a federal fair lending law enacted to address the issue of redlining. In order to effectively achieve its intent, race and ethnicity must be factored into bank performance evaluations. Currently they are not. It also demonstrates the need for regulators to require banks to enter into community benefits or CRA agreements with community stakeholders and advocates to ensure the needs of all communities are being met.”
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New Jersey Citizen Action is a statewide advocacy and empowerment organization that advances social, racial and economic justice for all, while also meeting the pressing needs of low- and moderate-income New Jerseyans through education and direct services.