This case, brought by the United States in December 2011 against Countrywide Financial Corporation, resulted in the largest residential fair lending settlement in U.S. history. $335 million was paid to compensate more than 200,000 African-American and Hispanic borrowers who were allegedly charged ...
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This case, brought by the United States in December 2011 against Countrywide Financial Corporation, resulted in the largest residential fair lending settlement in U.S. history. $335 million was paid to compensate more than 200,000 African-American and Hispanic borrowers who were allegedly charged higher fees and interest rates because of their race or national origin.
The United States also claimed that Countrywide and its subsidiaries ("the Countrywide Defendants") steered thousands of African-American and Hispanic borrowers into subprime mortgages when non-Hispanic White borrowers with similar credit profiles received prime loans.
Prior to entry of the Consent Decree, the Countrywide Defendants stopped originating residential loans. In addition to the monetary relief, the consent decree contains remedial provisions to become effective in the event the Countywide Defendants ever reenter this business. These include implementation of policies and practices to prevent and detect potential fair lending violations not only on the basis of race or national origin, but also on the basis of marital status.
The Consent Decree has a four-year term, beginning December 21, 2011.
Gregory Pitt - 07/16/2012
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