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LEGAL NEWSLINE

Thursday, April 18, 2024

Justice Department targets loan providers that allegedly discriminated against Hispanic homeowners

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SAN FRANCISCO (Legal Newsline) — The Justice Department has announced a lawsuit against a multitude of mortgage loan modification service providers, alleging violations of the federal Fair Housing Act and Equal Credit Opportunity Act.

 

The department alleges these companies intentionally discriminated against Hispanic homeowners. The companies purportedly gave predatory mortgage loan modification services specifically to Hispanic home owners.


 

The defendants in the lawsuit are The Home Loan Auditors LLC, Century Law Center LLC, SOE Assistance Center Inc., Spieker Law Office and the principals of these entities: Omar Alcaraz, Araceli Castro, Oralia Gutierrez, Hortencia Leon, Raul Luna, Elena Ramirez and David Spieker.

 

“Intentionally targeting any community or person with predatory mortgage services because of their ethnicity or national origin violates federal law, harms working families and hurts our entire economy,” said principal deputy assistant attorney general Vanita Gupta, head of the Justice Department’s Civil Rights Division.

 

Gupta said the department’s lawsuit serves as a reminder that it will work to ensure all homeowners can gain access to mortgage services free from discrimination.

 

Gustavo F. Velasquez, HUD’s assistant secretary for Fair Housing and Equal Opportunity added that Hispanic families do not need empty promises that end up worsening their situations.

 

“HUD is gratified that the Department of Justice is taking action against individuals and companies that victimize homeowners because of where they come from or because they speak Spanish or other languages,” Velasquez said.

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