New Jersey Citizen Action (NJCA) has expressed strong disapproval of the recent decision by the Trump administration's Department of Justice to terminate a consent order with Lakeland Bank, now known as Provident Bank. The order was part of a $13 million settlement addressing allegations of discriminatory redlining practices affecting communities of color in Newark and other areas.
The NJCA Education Fund (NJCAEF), an affiliate organization, has filed an affidavit for an amicus brief in federal court aiming to prevent the termination. The consent order was initially established under the Biden administration's Department of Justice after accusations that Lakeland engaged in systematic redlining, which hindered Black and Hispanic individuals from accessing homeownership—a crucial avenue for building generational wealth.
NJCA Executive Director Dena Mottola Jaborska criticized the move, stating, "This is yet another example of how the Trump administration has no respect for the law or the needs of low-and moderate-income communities, and in particular the needs of people of color." She added that it is "unconscionable" for the Department of Justice to vacate a consent order against a bank that denied equitable access to financial tools necessary for homeownership.
Under the original agreement, Lakeland was required to establish a $12 million loan subsidy fund aimed at reducing costs associated with mortgages and refinancing loans for residents in predominantly Black and Hispanic neighborhoods across Essex, Somerset, and Union counties. An additional $1.1 million was allocated for advertising, financial counseling, and community development efforts in these areas.
Leila Amirhamzeh, NJCA Director of Community Reinvestment (CRA), emphasized the importance of maintaining these initiatives: “This funding and these programs are critical to remediate the impact of redlining.” She noted that while Lakeland/Provident Bank had been cooperating with community partners like NJCAEF to implement the consent order, efforts by the Trump Administration to terminate it suggest a lack of accountability for banks engaging in discriminatory practices. Amirhamzeh urged courts to uphold the consent order "in the interests of social, economic and financial justice."
