Key Cases, Regulatory Changes & Land Use Developments Affecting Real Estate Professionals
Welcome back to the Real Estate Law Newsletter. This issue keeps a tight New Jersey focus: a redlining consent order that won’t close out, a brand-new statewide ban on algorithmic rent pricing, a servicing lawsuit out of Essex County. Whether you’re advising lenders, landlords, or fellow practitioners, our Real Takeaways translate each into practical next steps.
Quick Highlights
- A federal judge keeps Lakeland Bank under its $13M redlining consent order, citing insufficient proof of compliance.
- New Jersey enacts the FAIR Act, banning algorithmic rent-pricing software statewide starting July 2027.
- An Essex County homeowner sues Newrez/Shellpoint over alleged RESPA and state consumer-fraud violations.
- A state appellate panel affirms summary judgment for Brach Eichler in a real estate malpractice suit.
A New Jersey federal judge has declined to close out a $13 million redlining settlement between Lakeland Bank and the Department of Justice, ruling the bank hasn’t yet shown enough evidence of sustained compliance with the underlying consent order. The original case accused the bank of avoiding mortgage lending in majority-Black and Hispanic neighborhoods across the state.
Real Takeaways:
- Consent orders don’t end on schedule: Courts are willing to keep New Jersey institutions under oversight past the expected term if compliance proof is thin.
- CRA files need staying power: Lenders operating in-state should be prepared to document fair-lending compliance well beyond a settlement’s nominal end date.
- Plan for multi-year engagements: Attorneys advising banks under similar orders should budget for extended monitoring, not a one-time close-out.
Gov. Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act, making New Jersey the fourth state to restrict software that pools nonpublic rent, occupancy, and lease data across landlords. The law takes effect July 1, 2027, and builds on an antitrust suit the state Attorney General filed against RealPage and ten of its largest landlords.
Real Takeaways:
- A new compliance clock is running: Landlord clients have roughly a year to review whether their pricing software falls under the law before it takes effect.
- Local ordinances are preempted: The FAIR Act overrides conflicting local rules, including Jersey City’s earlier ban, worth flagging for multifamily clients operating across municipalities.
- Litigation and legislation are linked: The pending RealPage antitrust suit helped build the case for this law; expect the two tracks to keep influencing each other.
An Essex County homeowner has sued Newrez, doing business as Shellpoint Mortgage Servicing, in New Jersey state court, alleging the servicer delayed loss-mitigation decisions, gave inconsistent reinstatement figures, and continued foreclosure activity while her requests sat unresolved, claims she says violate RESPA, Regulation X, and the New Jersey Consumer Fraud Act.
Real Takeaways:
- Timing details drive these claims: The suit turns on a reinstatement notice that arrived with only one day left before the payment deadline, a reminder that servicing timelines are heavily scrutinized.
- State and federal claims travel together: Plaintiffs are pairing RESPA/Reg X violations with the NJ Consumer Fraud Act, which can broaden damages exposure.
- Documentation is the defense: Servicers should be able to show consistent, timely communication on loss-mitigation requests, inconsistency itself becomes the allegation.
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