(Reuters) – New Jersey’s OceanFirst Bank will invest at least $14 million in a loan subsidy fund to resolve a U.S. government lawsuit accusing it of illegal redlining.
A proposed settlement with the Toms River-based unit of OceanFirst Financial was filed on Wednesday in Trenton, New Jersey federal court.
The U.S. Department of Justice 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.
