NYC Feds Put Squeeze On Mortgage Banker In Civil Suit Alleging Fair Housing, ECOA Violations In Lending To Black, Hispanic Home Loan Borrowers

From the Office of the U.S. Attorney (Manhattan):

• Preet Bharara, the United States Attorney for the Southern District of New York, [and others] announced [] that the United States has filed a civil rights lawsuit against GFI MORTGAGE BANKERS alleging violations of the Fair Housing Act and the Equal Credit Opportunity Act.



• The Complaint alleges that GFI engaged in a pattern or practice of discrimination on the basis of race and national origin in making hundreds of loans from 2005 through 2009. The Complaint, which was filed [] in Manhattan federal court, seeks a declaration that GFI’s practices were illegal, an injunction against further discrimination, compensatory damages to benefit the victims of GFI’s discrimination, and civil penalties.



• Manhattan U.S. Attorney Preet Bharara said: “As the lawsuit we filed today alleges, discrimination still exists in certain quarters and it has profound consequences for the victims. At a time when so many American homeowners of all races and nationalities are struggling to make their mortgage payments, it is unacceptable that, as we allege, the impact of GFI Mortgage’s business practices resulted in its African-American and Hispanic customers paying higher fees and interest rates for their residential mortgages. As today’s suit demonstrates, this type of discriminatory action will not be tolerated. We will continue to work to ensure that fair lending laws are enforced throughout the district.”

For the U.S. Attorney press release, see Manhattan U.S. Attorney Sues Mortgage Banker For Engaging In Discriminatory Lending Practices Against African-American And Hispanic Borrowers.