Community leaders joined with several of the state’s top law enforcement officials recently to discuss redlining, an illegal process where banks deny home loans to people of color, based largely on where they live.
“Redlining is happening in New Jersey today. It’s happening right here in Newark,” said U.S. Attorney Philip Selinger.
Lakeland Bank was put under a consent decree last year by the U.S. Department of Justice over discriminatory redlining. “The allegations were shocking,” Selinger said. “If you lived in a Black or Hispanic neighborhood in Essex, Somerset County or Union County, you likely had little opportunity to apply for, and certainly not obtain, a mortgage from Lakeland Bank. And in fact, you probably never even saw a Lakeland branch in your community.”
Banks that are charged with redlining are paying hefty fines to federal and state governments. That money is being used to reinvest into communities of color most impacted by the practice.
Chasing the Dream: Poverty and Opportunity in America is a multiplatform public media initiative that provides a deeper understanding of the impact of poverty on American society. Major funding for this initiative is provided by the JPB Foundation. Additional funding is provided by Ford Foundation.
