A mortgage lending company will pay $9 million to settle a U.S. Justice Department lawsuit that alleged the company discriminated against African-American and Hispanic borrowers.
Provident Funding Associates was accused of the discrimination for those who received a residential mortgage between 2006 and 2011 from the company's nationwide network. The lawsuit, filed in U.S. District Court Northern District of California, and alleges Provident violated federal law by charging thousands of Hispanic and African-American borrowers a higher fee on loans. The lawsuit says the higher fees were not based on the risk of the borrower but on their national origin and race.
U.S. Attorney Melinda Haag of the Northern District of California was part of an announcement on Thursday about a $9 million settlement with Provident Funding Associates over allegations of discrimination against African-American and Hispanic borrowers. | U.S. Department of Justice
“The settlement demonstrates this U.S. Attorney’s Office will devote the resources necessary to root out and address unfair lending practices that affect citizens of this district,” said U.S. Attorney Melinda Haag of the Northern District of California. “The law is clear: access to mortgage loans may not be made more difficult because of an applicant’s race or national origin. We are glad that Provident has agreed to put an end to this practice without engaging in protracted litigation.”
The Justice Department and Consumer Financial Protection Bureau investigated the allegations, and said Provident fully cooperated with the investigation into its lending practices.