TRENTON, N.J. — Attorney General Matthew J. Platkin and the Division on Civil Rights (DCR) released a report on Tuesday revealing findings of unlawful mortgage redlining by Republic First Bank in New Jersey. The report follows a multi-year investigation by the DCR and the Division of Law (DOL) into allegations of discrimination in Republic’s lending practices, which disproportionately impacted Black, Hispanic, and Asian communities.
The investigation found that Republic, which regulators closed in April 2024 due to unsafe conditions, systematically avoided originating home loans in majority-Black, Hispanic, and Asian neighborhoods from 2018 to 2022. According to the report, only 6 percent of Republic’s loans during this period were to residents of these neighborhoods, a rate significantly lower than peer lenders. The bank also concentrated its branches and mortgage offices in predominantly white areas and failed to conduct meaningful advertising in communities of color.
“It is shameful that Republic engaged in practices that redlined neighborhoods based on the race or national origin of the neighborhood’s residents,” said Attorney General Platkin. “Those mortgage redlining practices violate the New Jersey Law Against Discrimination.”
Following the findings, DCR filed a claim with the Federal Deposit Insurance Corporation (FDIC), which acts as the receiver for the failed bank, seeking monetary relief for those harmed by Republic’s practices. The State also shared the report with Fulton Bank, which acquired Republic’s loan portfolio, urging proactive steps to prevent similar discriminatory practices.
The State’s investigation concluded that Republic’s redlining practices included failing to address underperformance in lending to communities of color and making exceptions to underwriting policies more frequently for white applicants. The DCR plans to monitor Fulton Bank’s performance to ensure these practices do not persist.
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