A record $335 million dollar settlement in the civil mortgage bias case against Bank of America.
The case settles allegations that its Countrywide unit discriminated against minority homebuyers, by steering minorities to subprime mortgages and charging higher fees than to white borrowers.
At a press conference in Washington DC, Attorney General Eric Holder said it was the largest residential fair lending settlement in history.
SOUNDBITE: ERIC HOLDER, U.S. ATTORNEY GENERAL (ENGLISH) SAYING:
"These allegations represent alarming conduct by one of the largest mortgage lenders in the country during the height of the housing market boom. For example, in 2007, a qualified African American customer in Los Angeles borrowing $200,000 paid an average of roughly $1,200 more in fees than a similarly qualified white borrower. This settlement will compensate the more than 200,000 African American and Hispanic borrowers who were victims of discriminatory conduct."
The settlement covers conduct between 2004 and 2008- which was before Countrywide was bought by Bank of America.
Bobbi Rebell, Reuters.
B of A's historic bias settlement (1:23)
Dec. 21 - Bank of America will pay $335 million to settle civil bias charges related to mortgage lending at its Countrywide unit. Bobbi Rebell reports. ( Transcript )