Wednesday, February 1, 2017

JP Morgan Chase Settles Home Loan Discrimination Suit for $55 Million

JP Morgan Chase agreed to pay $55 million to settle a lawsuit charging that Chase let mortgage brokers over charge Black and Hispanic customers.   The suit claims that Chase permitted brokers to jack up interest rates on more than 53,000 customers resulting in higher charges for Black and Hispanic customers. Blacks were charged an average of $1,126 and Hispanics paid $968 more. The complaint filed Jan 18th, 2017 in NY alleges that Chase willfully violated the US fair Housing Act and the Equal Credit Opportunity Act between 2006 and 2009.

At the heart of the suit is the fact that: Chase allows mortgage brokers to change loan rates that were initially set by objective credit scoring criteria. Chase allowed the brokers to discriminate and charge more.



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