Bank of America to settle discrimination claims for $335M

Bank of America to settle discrimination claims for $335M

Bank of America has agreed to pay $335 million to settle federal claims that it discriminated against minority home buyers during the housing boom.

Obama administration officials said the settlement, the largest ever for fair-lending claims, came after investigators reviewed more than 2.5 million home loans originated by Countrywide during the housing boom.
Investigators concluded that Countrywide charged more than 200,000 blacks and Hispanics higher fees and interest rates than comparable white borrowers between 2004 and 2008. In addition, officials claim the firm advised more than 10,000 minority borrowers to take riskier and more costly subprime loans, even though they could have qualified for more traditional mortgages.

Read more from The Washington Post.

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