New Jersey's OceanFirst Bank settles US redlining charges (updated)

OceanFirst Financial

18/09/2024 18:04

(Adds accusations, settlement terms, Biden administration
redlining initiative throughout; adds byline)
    By Jonathan Stempel
       Sept 18 (Reuters) - New Jersey's OceanFirst Bank will
invest at least $14 million in a loan subsidy fund to resolve a
U.S. Department of Justice lawsuit accusing it of illegal
redlining in the central part of the state.
    A proposed settlement with the unit of OceanFirst Financial
 OCFC.O  was filed on Wednesday in federal court in Trenton, New
Jersey, and requires a judge's approval.
    The Justice Department said that between 2018 and 2022,
OceanFirst discouraged borrowers from obtaining home loans and
other services in majority-Black, Hispanic and Asian
neighborhoods of Middlesex, Monmouth and Ocean counties, while
serving the needs of borrowers in majority-white areas.
    According to the government, these practices violated the
federal Fair Housing Act and the Equal Credit Opportunity Act.
    A proposed five-year consent order says OceanFirst neither
admitted nor denied wrongdoing, and believes it did not
discriminate based on race, color and national origin.
    OceanFirst nonetheless settled to avoid litigation and to
instead provide "fair and equal access" to home loan services in
the New Brunswick lending region, according to the order.
    The 122-year-old bank also agreed to improve compliance and
training, and to spend at least $1.1 million on education,
foreclosure prevention, other loan services and advertising.
    OceanFirst did not immediately respond to requests for
additional comment.
    The Red Bank, New Jersey-based company recently had 39
banking offices and about $13.3 billion of assets.
    It provides services throughout the state, as well as in the
New York, Philadelphia, Boston and Baltimore markets.
    The Biden administration has targeted illegal residential
lending practices through its Combating Redlining Initiative,
which was announced in October 2021.    

 (Reporting by Jonathan Stempel in New York; editing by Jonathan
Oatis)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))