Wednesday, December 21, 2011

DOJ reaches historic settlement with Countrywide

 by Sarah Jawaid, National Housing Conference

Today, the Justice Department announced a settlement to resolve claims against Countrywide Financial Corporation and its subsidiaries, now owned by Bank of America. The $335 million settlement, described by Justice as the largest fair housing settlement in U.S. history, compensates 200,000 African American and Latino borrowers from 2004 through 2008 who were subject to discriminatory mortgage lending practices. 

“In this thorough investigation, the Department uncovered a pattern or practice of discrimination involving victims in more than 180 geographic markets across 41 states and the District of Columbia," read a statement from the Justice.  "These discriminatory acts allegedly included widespread violations of the Fair Housing Act and the Equal Credit Opportunity Act, and resulted in African-American and Hispanic borrowers being charged higher rates for mortgage loans—solely because of their race or national origin.”

Read more on Department of Justice website.

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