The settlement with the U.S. Justice Department was filed Wednesday with the Central District court of California and is subject to court approval. The DOJ says it's the largest settlement in history over residential fair lending practices.
According to the DOJ's complaint, Countrywide charged over 200,000 African-American and Hispanic borrowers higher fees and interest rates than non-Hispanic white borrowers with a similar credit profile. The complaint says that these borrowers were charged higher fees and rates because of their race or national origin rather than any other objective criteria.
"These institutions should make judgments based on applicants' creditworthiness, not on the color of their skin," said Attorney General Eric Holder. "With today's settlement, the federal government will ensure that the more than 200,000 African-American and Hispanic borrowers who were discriminated against by Countrywide will be entitled to compensation."
Read more here BofA in $335M Settlement Over Countrywide Loans
5 comments:
I wonder if BA had sought the help of a loan modification lawyer early on. Would things have been different?
That's a class action lawsuit many homeowners rejoiced over! Too bad I'm not one of them. I'm still working to getting over my IT contractor mortgage.
I could have used the money from this class action lawsuit. I'm lucky I landed under good mortgage leads. Now someone is helping me out with my mortgage payments.
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Most financial institutions simply can't get away with being bias on loan applications or even on decisions that involve los angeles probate advance because there are so much avenues now for those affected to vent out their concerns.
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