Friday, July 2, 2010

Countrywide Sued for Discriminatory Loans

Posted By 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.

Keep the Flyer Free!

Always independent, always free (never a paywall),
the Memphis Flyer is your source for the best in local news and information.

Now we want to expand and enhance our work.
That's why we're asking you to join us as a Frequent Flyer member.

You'll get membership perks (find out more about those here) and help us continue to deliver the independent journalism you've come to expect.



Subscribe to this thread:

Add a comment

© 1996-2018

Contemporary Media
460 Tennessee Street, 2nd Floor | Memphis, TN 38103
Visit our other sites: Memphis Magazine | Memphis Parent | Inside Memphis Business
Powered by Foundation