Alert April 17, 2012

The Department of Justice Sues Mortgage Bankers for Violations of Fair Housing Act and Equal Credit Opportunity Act

The Department of Justice filed a complaint against a mortgage banker alleging violations of the Fair Housing Act and Equal Credit Opportunity Act. The complaint alleges that defendant engaged in a pattern and practice of race and national origin discrimination by charging African American and Hispanic borrowers higher interest rates and fees on home mortgage loans compared to the rates and fees the defendant charged to similarly-situated non-Hispanic white borrowers. The Department of Justice alleged that in hundreds of instances African American and or Hispanic borrowers with similar credit and risk profiles as white borrowers, entering in the same type of home mortgage loan, paid higher interest rates and fees. Click here for the complaint.