Washington State Files Administrative Action Accusing Countrywide Of Discriminatory, Predatory Lending Practices

In Seattle, Washington, The Seattle Times reports:

• Countrywide Home Loans is facing a $1 million fine and the loss of its mortgage business in Washington after a state agency determined that it charged minority borrowers more for its loans than it charged white borrowers in similar circumstances.

• The company also could be forced to pay restitution to at least 50 borrowers the state says were victimized by the company's discriminatory pricing, according to administrative charges filed Monday by the [Washington] State Department of Financial Institutions.

• The action is the state's first ever fair-lending case, and could pressure the company — and possibly other lenders — to modify loan terms for state homeowners who are struggling to repay mortgages with high interest rates that are continuing to climb, said Deborah Bortner, director of DFI's consumer services division.

For more, see State accuses Countrywide of discriminatory lending (Countrywide Home Loans is facing a $1 million fine and the loss of its mortgage business in Washington after a state agency determined that it charged minority borrowers more for its loans than it charged white borrowers in similar circumstances).

See also:

• Seattle Post Intelligencer: State accuses Countrywide of bias (It proposes fine of $1 million),
• Governor's office press release: Gov. Gregoire announces alleged discriminatory lending by Countrywide Home Loans.

To view the Statement of Charges filed by the state, see In re Countrywide Home Loans.

Go here and go here for other posts on alleged race bias in real estate transactions.

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