Bank Of America To Pay $335 Million To Settle Countrywide Claims
Posted by Toi Williams on Jan 5th, 2012
Bank of America has agreed to pay $335 million to resolve claims that its Countrywide unit engaged in a pervasive pattern of discrimination. The settlement was filed with the Central District court of California and is subject to court approval. The money from the settlement will be used to compensate the victims of Countrywide’s discriminatory mortgage loans from 2004 through 2007.
The U.S. Justice Department says it’s the largest settlement over residential fair lending practices in history. Between 2004 and 2007, Countrywide originated millions of residential mortgage loans as the nation’s largest single-family mortgage lender. Bank of America bought Countrywide Financial in 2008.
The alleged discrimination was aimed at qualified African-American and Hispanic borrowers that applied for home loans. The complaint alleged that Countrywide charged more than 200,000 African-American and Hispanic borrowers steeply higher fees and interest rates than non-Hispanic white borrowers that had a similar credit profile. These borrowers were charged higher fees and rates because of their race or national origin, rather than any other objective criteria ...
http://localizedusa.com/2012/01/05/bank-of-america-to-pay-335-million-to-settle-countrywide-claims-nyse-bac/