On October 29, the New Jersey Office of the Attorney General and Division on Civil Rights released investigatory findings concluding that a bank engaged in a pattern of redlining Black, Hispanic and Asian communities in New Jersey — allegedly violating the New Jersey Law Against Discrimination. The findings revealed that the bank’s peer lenders originated loans to Black borrowers at over one-and-a-half times the rate the bank did, to Asian borrowers at about two-and-a-half times the rate, and to Hispanic borrowers at over three times the rate. Overall, just 6 percent of the bank’s home loans were originated to residents of color. Despite being aware of these disparities, the bank took little corrective action, and the lending disparities worsened between 2018 and 2022.
In response to these findings, New Jersey filed a claim with the FDIC, the receiver for the bank following its failure, seeking monetary relief for New Jersey residents harmed by Republic’s practices. Additionally, New Jersey shared its findings with another bank that acquired the failed bank’s assets following its closure in April of this year, urging proactive steps to mitigate redlining risks.
