'Historic Settlement' On Race-Based Lending Practices In NJ: State Official Says

TRENTON, NJ — A "historic settlement" was reached Thursday between New Jersey and former home mortgage lender Trident Mortgage Company LP to resolve allegations that the company and real estate brokerage Fox & Roach LP engaged in racially discriminatory redlining in their lending practices, the state attorney general's office said.

The settlement mandates that Trident establish an $18.4-million fund that will provide individual subsidies of up to $10,000 for each qualified applicant in support of home purchase, refinance and home improvement loans for owner-occupied homes in majority-minority neighborhoods, according to the state attorney general's office.

In addition, Trident must spend an additional $875,000 on "targeted advertising and public outreach to generate awareness of the $18.4 million fund, $375,000 to fund consumer financial education; and $750,000 to start a Community Development Partnership Program, the state attorney general's office said.

This program will financially support "collaborations with local community-based or governmental organizations that will help extend credit to qualified borrowers," according to the state attorney general's office.

Of the 22,960 loans that were reported under Home Mortgage Disclosure Act that Trident made for single-family dwellings from 2015 through 2019 in the Philadelphia, South Jersey and Delaware areas, 11.7 percent came from residents of majority-minority areas, the attorney general's original complaint stated. Conversely, Trident’s competitors made 16.2 percent of their 50,060 loans from those same neighborhoods, the original complaint continued.

Berkshire Hathaway HomeServices Fox & Roach had mortgage consultants

working in multiple South Jersey locations, including its Haddonfield, Marlton, Medford, Southampton and Turnersville offices as of this story's posting.

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