NY AG Settles With Two Mortgage Brokerages, Files Suit Against Another For Alleged Race-Based, Discriminatory Lending Practices

From the Office of the New York Atttorney General:

• Attorney General Andrew M. Cuomo [Monday] announced results of a landmark investigation with the New York State Department of Banking into discriminatory practices in the mortgage brokerage industry.

• In the first law enforcement action of its kind in New York State, two mortgage brokerage companies – HCI Mortgage and Consumer One Mortgage – will collectively pay $665,000 in restitution to approximately 455 Black and Latino borrowers who were illegally charged higher fees than similarly-situated White borrowers. The companies collectively operate more than 20 branches throughout New York State.

• The Attorney General also filed a lawsuit in federal district court against another mortgage brokerage company – U.S. Capital Funding, LLC – that engaged in similar discriminatory practices.(1)

Go here for the NY AG press release: Attorney General Cuomo Announces Groundbreaking Agreement With Major Mortgage Brokers Who Discriminated Against Minority Customers (HCI and Consumer One to Pay Over $650,000 in Restitution After Illegally Charging Black and Latino Customers Higher Brokerage Fees; Cuomo Sues U.S. Capital Funding for Similar Discriminatory Practices).

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

(1) According to the NY AG press release, unlike HCI and Consumer One, U.S. Capital Funding failed to agree to provide appropriate relief to victims. Consequently, the Attorney General filed a lawsuit seeking restitution for over 100 minority borrowers and a court order requiring the company to cease its discriminatory practices. DiscriminationPredatoryLendingAlpha