Three honest housing organizations are asking to weigh in on a federal case the place the Department of Justice is looking for to finish a redlining settlement with Lakeland Bank — an effort the DOJ and the financial institution each oppose.
The nonprofits — New Jersey Citizen Action Education Fund, the Housing Equality Center of Pennsylvania, and the National Fair Housing Alliance — filed a proposed amicus curiae temporary earlier this month contesting the DOJ’s transfer to finish the Biden-era redlining settlement early, saying the consent order has not but delivered its full advantages to Newark-area residents.
However, each the DOJ and New Jersey-based Lakeland Bank filed separate motions on June 23 urging the court docket to deny the honest housing teams’ request to take part within the case. Both events say the financial institution has applied protocols that ought to fulfill any alleged wrongdoing relating to the settlement.
“There is not any function for amici the place, as right here, a celebration has settled a case with a authorities enforcement company, has complied with the phrases of settlement, and the federal government company workouts its enforcement discretion to terminate the order encompassing the settlement earlier than the expiration of the order’s full time period,” an legal professional representing Lakeland Bank wrote in a submitting.
The financial institution, which was acquired final yr by Provident Financial Services, criticized the nonprofits’ request, claiming it displays a broader disagreement with the DOJ’s enforcement priorities slightly than any particular issues in regards to the case itself.
“The amicus temporary displays a disagreement not over the particular circumstances of this case, however slightly over the suitable prioritization of Justice Department assets between honest lending and different enforcement priorities,” Lakeland Bank wrote.
In 2022, Lakeland was hit with claims by the DOJ that it failed to present mortgage lending providers to Black and Hispanic neighborhoods within the Newark, New Jersey, space between 2015 and 2021.
The financial institution agreed to make investments $12 million in a mortgage subsidy for residents of beforehand excluded neighborhoods over a five-year interval. The agency additionally pledged greater than $1 million towards group outreach, monetary schooling, and partnerships.
In its most up-to-date submitting, Lakeland described its compliance as “exemplary,” noting that out of the $12 million mortgage subsidy fund dedication, it has invested $6.7 million to improve credit score for mortgage candidates in Newark. It will make investments the rest of the required quantity whether or not or not the consent order is terminated, it claims.
Lakeland additionally detailed its inside compliance efforts, together with worker coaching and efforts to open new branches — although it acknowledged delays in acquiring obligatory permits.The DOJ filed its unopposed movement to terminate the consent order in early June, which stays pending earlier than the court docket.
The federal authorities has argued in its movement that Lakeland “has demonstrated a dedication to remediation and has reached substantial compliance with the financial and injunctive phrases” of the order.
The consent order is at the moment scheduled to be in impact till at the least September 2027.
