Bank of America to Pay for Discriminatory Lending

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Bank of America will pay $335 million to settle federal claims that its Countrywide unit discriminated against minority borrowers, Justice Department officials announced.

 

Attorney General Eric Holder said a federal probe found discrimination against 200,000 qualified African-American and Hispanic borrowers from 2004 to 2008. Minority borrowers who qualified for prime loans were steered into higher interest subprime loans.

 

Bank of America purchased Countrywide in 2008 for $4 billion in a deal that made the bank the nation’s leading mortgage lender. The deal closed ahead of the meltdown that fall.

 

 

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Filed under Economy, Everyone's a Little Bit Racist

One response to “Bank of America to Pay for Discriminatory Lending

  1. Pingback: Does Disparity In the Criminal Justice System Indicate Discrimination? « Jeff Oakes

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