Business
Bank of America to pay $335 million over alleged discrimination
Thursday, December 22, 2011
Bank of America agreed to pay US$335 million to resolve allegations that its Countrywide unit engaged in a widespread pattern of discrimination against qualified African-American and Hispanic borrowers on home loans.
The settlement with the U.S. Justice Department (DOJ) 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.