Friday, July 2, 2010
Countrywide Sued for Discriminatory Loans
Posted by Mary Cashiola on Fri, Jul 2, 2010 at 3:11 PM
I know it's Fourth of July weekend and all you want to do is blow things up, but Countrywide already imploded. And now is being sued by the Illinois attorney general's office.
The suit alleges that Countrywide steered Latinos and African-American borrowers into riskier subprime loans even when they qualified for safer mortgages.
The complaint also alleges that minority borrowers paid more for mortgages across Countrywide’s product line, including its prime loans. Significantly, [the attorney general]’s analysis of Countrywide loan data found that the racial disparities could not be explained by objective factors, such as borrowers’ credit scores or debt-to-income ratios.
Illinois filed suit against Wells Fargo in 2009 for violating the state's fair lending and civil rights laws, and that litigation is still ongoing.
Memphis also has a similar suit against Wells Fargo.
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