Mortgage Company Settles Discriminatory Loan Charges For $3.5 Million

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"Mortgage Company Settles Discriminatory Loan Charges For $3.5 Million"

A mortgage company that was charged with overpricing loans for nonwhite borrowers will pay $3.5 million to the 600 African American and Latino borrowers who paid higher mortgage rates than whites from 2005 to 2009, the New York Times reports. GFI Mortgage Partners will also pay a $55,000 fine, the maximum allowed under the Fair Housing Act. GFI admitted in a statement that federal investigators found that it overcharged minority borrowers, a problem that isn’t isolated to one company: blacks and Latinos were twice as likely as whites to be affected by the housing crisis, as lenders often pushed them into subprime loans and overcharged them on their mortgages.

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