The Justice Department and the U.S. Attorney’s Office for the Southern District of New York allaeges GFI Mortgage Bankers charged African American and Hispanic borrowers higher rates and fees on mortgage loans compared to whites in similar situations.
According to the recently filed lawsuit, GFI knew that its loan officers priced loans based on factors unrelated to creditworthiness, resulting in thousands of dollars in overcharges for African American and Hispanic borrowers. GFI also failed to monitor its loan officers to ensure that they were pricing loans in a non-discriminatory manner.
For example, an African American borrower who took out a home mortgage loan in 2007 paid on average $7,500 more over the first four years of the loan than a white borrower in a similar situation, and a Hispanic borrower paid $5,600 more, according to the statement.
In addition, during the period when the discrimination occurred, GFI had a policy or practice of allowing and encouraging its loan officers in New York and New Jersey to promote loan products, price loans, and charge fees in a manner that was unrelated to credit risk or loan characteristics.
African American and Hispanic borrowers who received GFI loans since 2005, former employees of GFI, or any other individuals with information relevant to this are encouraged to contact the Justice Department.
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