GFI Mortgage To Pay $3.6M To End Loan Race Bias Claims

Law360, New York (August 28, 2012, 7:54 PM EDT) -- GFI Mortgage Bankers Inc. will pay $3.6 million to settle allegations that it discriminated against qualified African-American and Hispanic borrowers by charging them higher interest rates and fees than their white counterparts, the U.S. Department of Justice said Tuesday.

GFI agreed to pay $3.5 million to roughly 600 African-American and Hispanic borrowers as well as a $55,000 fine, according to the DOJ. It admitted that data about note interest rates and fees it charged on mortgage loans to qualified borrowers showed clear differences between white borrowers...
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