The Justice Department’s Civil Rights Division, U.S. Attorney’s Office for the District of New Jersey, and Department of Housing and Urban Development (HUD) announced today that OceanFirst Bank, N.A. has agreed to pay over $15 million to resolve allegations of redlining in predominantly Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties in New Jersey. Redlining is an illegal practice where lenders avoid providing credit services based on the race, color, or national origin of residents.
In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative to address this form of discrimination against communities of color. The initiative aims to expand the department's reach by strengthening partnerships with U.S. Attorneys’ Offices nationwide and regulatory partners. Since its inception in 2021, the department has announced 13 redlining resolutions and secured over $137 million in relief for affected communities.
“This settlement... will help to ensure that future generations of Americans inherit a legacy of home ownership that they have been too often denied,” said Attorney General Merrick B. Garland. “Redlining is unlawful... The Justice Department will continue to hold banks and mortgage companies accountable.”
“Far too often, communities of color have been denied equal access to credit,” said Assistant Attorney General Kristen Clarke. “Through our historic efforts... we have opened up new homeownership opportunities for impacted families.”
“We are committed to ensuring that everyone in New Jersey has access to the American dream,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey.
“Redlining is not only illegal but it unfairly closes doors of economic opportunity,” said HUD Acting Secretary Adrianne Todman.
The Justice Department’s complaint alleges that from 2018 through at least 2022, OceanFirst Bank failed to provide mortgage lending services in predominantly Black, Hispanic, and Asian neighborhoods while focusing its outreach on majority-white communities.
OceanFirst has agreed to invest at least $14 million in a loan subsidy fund for residents in these neighborhoods; spend $400,000 on community partnerships; allocate $700,000 towards advertising and financial education; open a loan production office; conduct community credit needs assessments; evaluate fair lending compliance systems; conduct staff training on fair lending; and hire a director of community lending.
The investigation into OceanFirst’s practices began after a referral from the Office of the Comptroller of the Currency. OceanFirst cooperated with the investigation.
Information about fair lending enforcement can be found at www.justice.gov/fairhousing or reported via their housing discrimination tip line at 1-833-591-0291.
---