The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice (DOJ) have reached a $15 million settlement with OceanFirst Bank due to allegations of discriminatory redlining in majority-Black, Hispanic, and Asian neighborhoods. The settlement underscores a wider effort to combat discriminatory lending practices that persistently denied credit services based on race and ethnicity.
OceanFirst Bank has faced accusations of redlining, restricting mortgage lending services in majority-Black, Hispanic, and Asian neighborhoods from 2018 to 2022. Their practices led to insufficient access to credit in specific areas, as highlighted by HUD and the DOJ's investigation initiated through a referral from the OCC.
Christopher Maher, CEO of OceanFirst Bank, claimed that the settlement aligns with the institution's long-standing track record of providing financial services to all residents, emphasizing their commitment to serve diverse communities and promote inclusive lending practices moving forward.
The complaint cited numerous instances where OceanFirst's branch closures and inadequate marketing efforts left predominantly Black, Hispanic, and Asian neighborhoods without access to essential mortgage lending services, reinforcing systemic barriers that many communities of color face in accessing financial resources.
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