The Bank of America Maryland's largest bank, will pay $335 million to settle allegations that its Countrywide Financial unit discriminated against blacks and Hispanic homebuyers during the real estate boom to the largest residential fair-lending settlement in history, the U.S. Department of Justice said.
The settlement is subject to court approval was filed Tuesday in the U.S. District Court for the Central District of California in the filing includes the department’s complaint that alleges that Countrywide discriminated by charging more than 200,000 African-American and Hispanic borrowers higher fees and interest rates than non-Hispanic white borrowers in both its retail and wholesale lending and the federal agency also alleges that Countrywide steered minorities into subprime loans while directing its white customers to prime loans.
A alleged discrimination took place from 2004 to 2007, when Countrywide was racking up profits as the nation's largest subprime mortgage lender in the company nearly collapsed in 2008 and was purchased by BofA in a $2 billion distressed sale to we discontinued Countrywide products and practices that were not in keeping with our commitment and will continue to resolve and put behind us the remaining Countrywide issues," BofA spokesman Dan Frahm says in a statement to the payment is one more in a string of Countrywide legal bills that will end up costing BofA billions of dollars.
The settlement is subject to court approval was filed Tuesday in the U.S. District Court for the Central District of California in the filing includes the department’s complaint that alleges that Countrywide discriminated by charging more than 200,000 African-American and Hispanic borrowers higher fees and interest rates than non-Hispanic white borrowers in both its retail and wholesale lending and the federal agency also alleges that Countrywide steered minorities into subprime loans while directing its white customers to prime loans.
A alleged discrimination took place from 2004 to 2007, when Countrywide was racking up profits as the nation's largest subprime mortgage lender in the company nearly collapsed in 2008 and was purchased by BofA in a $2 billion distressed sale to we discontinued Countrywide products and practices that were not in keeping with our commitment and will continue to resolve and put behind us the remaining Countrywide issues," BofA spokesman Dan Frahm says in a statement to the payment is one more in a string of Countrywide legal bills that will end up costing BofA billions of dollars.
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