Manhattan U.S. Attorney Settles Lending Discrimination Suit Against JPMorgan Chase For $53 Million

[nitpicker]

https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-settles-lending-discrimination-suit-against-jpmorgan-chase-53

Department of Justice
U.S. Attorney’s Office
Southern District of New York

FOR IMMEDIATE RELEASE
Friday, January 20, 2017

Manhattan U.S. Attorney Settles Lending Discrimination Suit Against JPMorgan Chase For $53 Million

Settlement Includes Admissions by the Bank and Provides Compensation for Borrowers Harmed by the Discriminatory Lending Practices

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed and settled a federal civil rights lawsuit against JPMORGAN CHASE BANK, N.A. (“CHASE”) alleging discrimination on the basis of race and national origin in the conduct of its wholesale lending business, in violation of the Fair Housing Act (“FHA”) and the Equal Credit Opportunity Act (“ECOA”). The Consent Order between the parties was approved today by the Honorable Alison J. Nathan.
(snip)

• Prior to January 2006 and continuing until early 2009, Chase originated and funded residential mortgage loans through a wholesale channel. Applications for these loans were brought to Chase by thousands of independent mortgage brokers throughout the United States who had entered into contracts with Chase for the purpose of bringing mortgage loan applications to it for origination and funding.

• From 2006 to 2009, approximately 360,000 wholesale mortgage loans were sourced by these independent brokers and brought to Chase. Of these, Chase reported that approximately 40,000 wholesale loans were made to African-American borrowers and that approximately 66,000 wholesale loans were made to Hispanic borrowers. Chase closed its wholesale channel in 2009.

• The government’s data model projects that, from at least 2006 through late 2009, certain of the approximately 106,000 African-American and Hispanic borrowers who obtained loans through independent mortgage brokers participating in Chase’s wholesale channel paid higher rates and fees on “wholesale” home mortgage loans compared to the rates and fees paid by similarly situated white borrowers who obtained loans through independent mortgage brokers participating in Chase’s wholesale channel. It projects that in thousands of instances, an African-American borrower entering into the same type of Chase wholesale mortgage as a white borrower paid higher loan rates and larger fees than such white borrower. Similarly, it projects that in thousands of instances, a Hispanic borrower entering into the same type of Chase wholesale mortgage as a white borrower paid higher loan rates and larger fees than such white borrower.

To compensate the estimated 50,000 African-American and Hispanic borrowers who paid higher rates and fees than similarly situated white borrowers, CHASE has agreed to create a settlement fund in the amount of approximately $53 million. CHASE has further agreed to retain an administrator to manage the settlement fund and to locate borrowers who may qualify for compensation.
(snip)

[Dustlawyer]

1. Chump change, should take them to trial.

They would have paid 1 billion on the courthouse steps to hide their dirt.