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Suit Alleges Countrywide Discriminated With Loans

Law360 (July 13, 2007, 12:00 AM EDT) -- Countrywide Home Loans Inc., America's largest mortgage lender, was hit with a purported class action lawsuit Thursday, alleging that the company charged black borrowers more for subprime mortgages than white borrowers.

Countrywide's pricing policy allows for “unchecked, subjective surcharges and additional points and fees to an otherwise objective risk-based financing rate,” according to the suit. That is, after the company arrives at a financing rate based on objective criteria like borrowers' credit histories, it may add further charges at its brokers' discretion.

“These subjective, additional charges...
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