Bank resolves allegations by committing millions in mortgage subsidies
OceanFirst Bank has reached a settlement with the Department of Justice (DOJ) and the Department of Housing and Urban Development (HUD) to resolve allegations of lending discrimination in New Jersey.
The regional bank was accused of violating the Equal Credit Opportunity Act and Fair Housing Act in the New Brunswick-Lakewood area, encompassing Middlesex, Monmouth, and Ocean counties.
The settlement required OceanFirst to invest at least $14 million in a mortgage loan subsidy fund for eligible residents in Middlesex and Monmouth counties over five years. Additionally, the bank will allocate $400,000 for community partnerships, spend $140,000 annually on targeted marketing and outreach in the affected area, and provide financial education workshops to expand access to home mortgage credit.
The bank’s parent company, OceanFirst Financial Corp., did not comment on the accusations, but chairman and CEO Christopher Maher released a statement, saying: “We look forward to continuing the bank’s efforts in the New Brunswick-Lakewood market to help meet the lending and banking needs of families, businesses, schools and organizations.”
This agreement is part of a broader initiative by the DOJ, which has reached similar settlements with about a dozen mortgage lenders since 2021, totaling over $120 million in investments for mortgage lending subsidies, financial education, and outreach.
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OceanFirst Bank claimed in its media release that it has provided over $625 million in loans and investments benefiting thousands of people in its service areas since 2020. The company said it will continue its pre-existing lending and community development initiatives aimed at increasing access to residential lending and other financial services across its footprint in New Jersey and northern Pennsylvania.
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