Wednesday, December 15, 2010
NATIONAL LENDER WITH BALTIMORE AREA BRANCHES SETTLES DISCRIMINATION COMPLAINT
PrimeLending Resolve Allegations of Lending Discrimination; 5 Branches in Baltimore Area
PrimeLending, a national mortgage lender with 168 offices in 32 states, has agreed to pay $2 million to resolve allegations that it engaged in a pattern or practice of discrimination against African-American borrowers between 2006 and 2009. The settlement was filed on December 9, 2010, in conjunction with a complaint made by the Justice Department. Brought under the federal Fair Housing Act and Equal Credit Opportunity Act, the complaint alleges African-American borrowers nationwide were charged higher prices on retail loans through PrimeLending’s branch offices - of which 7 in Maryland, including 2 in Baltimore County.
In 2006-2009, PrimeLending charged African-American borrowers higher annual percentage rates of interest for prime fixed-rate home loans and for home loans guaranteed by the FHA and VA than it charged white borrowers. The settlement requires PrimeLending to pay $2 million to the victims and use non-discriminatory loan pricing policies, monitoring, and employee training. Read the December 9, 2010 Article.