Feds Allege Discriminatory Lending In GFI Mortgage Suit

Law360, New York (April 3, 2012, 4:32 PM EDT) -- GFI Mortgage Bankers Inc. charged African-American and Hispanic borrowers thousands of dollars in extra fees that were unrelated to their credit risk, the U.S. attorney in Manhattan alleged in an anti-discrimination lawsuit filed Monday.

The New York-based lender, which is licensed to operate in seven states, systematically ignored its objective criteria for determining loan fees and overbilled hundreds of minority borrowers, the complaint alleges. The conduct was so brazen that it continued even after the company became aware of a federal investigation, prosecutors say.

"Discrimination still...
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