Consumer Financial Protection Bureau and United States v. Hudson City Savings Bank, F.S.B. (D.N.J.)

On September 24, 2015, the United States filed a complaint and consent order in Consumer Financial Protection Bureau and United States v. Hudson City Savings Bank, F.S.B. (D.N.J.), a Fair Housing Act and Equal Credit Opportunity Act pattern or practice case. The joint complaint with the Consumer Financial Protection Bureau (CFPB) alleges that from at least 2009 to 2013, Hudson City Savings Bank (Hudson City) failed to provide its home mortgage lending services to majority-Black-and-Hispanic neighborhoods on an equal basis as it provided those services to predominantly white neighborhoods, a practice commonly known as "redlining," throughout its major market areas in New Jersey, New York, Connecticut, and Pennsylvania.  Under the consent order Hudson City will provide $25 million in a loan subsidy fund to increase the amount of credit the bank extends to formerly redlined neighborhoods across its market areas; invest $2.25 million for advertising, outreach, financial education, and community partnership and open two full-service branches in these neighborhoods; increase the number of loan officers dedicated to majority-Black-and-Hispanic neighborhoods; develop and implement a compliance management system and training curriculum to ensure compliance with fair lending obligations; and create a comprehensive long-term plan to increase lending in previously redlined areas.  Hudson City will further pay a civil monetary penalty of $5.5 million, pursuant to the CFPB’s civil penalty authority under ECOA. The court entered the consent order on November 4, 2015.