DOJ V. GFI Mortgage — The End Of Discretionary Pricing?
May 3, 2012, 2:29 PM EDT
Law360, New York (May 3, 2012, 2:29 PM EDT) -- On April 2, 2012, the Civil Rights Division of the U.S. Department of Justice filed suit against GFI Mortgage Bankers Inc., alleging that GFI charged African American and Hispanic borrowers higher rates and fees solely based on their race. Previously, in January 2010, the U.S. Department of Housing and Urban Development found a “pattern or practice” of discrimination at GFI and referred GFI to the DOJ.
GFI used a web-based mortgage pricing software called Optimal Blue, which had been “customized” for GFI’s products and pricing strategy....