The U.S. Department of Justice (DOJ) has reportedly secured a settlement with ESSA Bancorp, Inc. regarding allegations that the financial institution engaged in discriminatory lending practices, specifically through redlining.

Redlining is a discriminatory banking practice in which financial institutions deny mortgages in certain geographic areas—typically minority neighborhoods—based on the demographics of those areas. According to the DOJ, ESSA engaged in these practices by surveying certain neighborhoods and willing to extend loans only in areas with higher levels of white populations and lower levels of racial minorities.

Key Points:
– The DOJ reached an agreement with ESSA, a financial institution, to address the complaints of redlining
– Redlining is a discriminatory banking practice where services are denied to certain geographic areas due to racial discrimination
– The DOJ alleges that ESSA surveyed neighborhoods and was willing to extend loans in areas with higher populations of white people and lower populations of racial minorities

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