01:58 PM EDT, 09/18/2024 (MT Newswires) -- OceanFirst Financial's ( OCFC ) OceanFirst Bank unit will invest a minimum of $14 million in a loan subsidy fund to settle a US Department of Justice lawsuit alleging illegal redlining in central New Jersey, Reuters reported Wednesday.

A proposed settlement with OceanFirst Financial's ( OCFC ) unit was filed Wednesday in federal court in Trenton, New Jersey, pending judicial approval, Reuters said.

The Justice Department claims that from 2018 to 2022, OceanFirst dissuaded individuals from obtaining home loans and other services in majority-Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean counties, while catering to majority-white areas, in violation of the Fair Housing Act and Equal Credit Opportunity Act.

The proposed five-year consent order reveals that OceanFirst neither admitted nor denied wrongdoing but settled to ensure fair home loan access in New Brunswick, while committing to improve compliance and invest at least $1.1 million in education and related services, the report said.

OceanFirst didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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