SunTrust Mortgage Pays $21M Over Race Bias Claims

Law360, Washington (May 31, 2012, 8:06 PM EDT) -- SunTrust Mortgage Inc. has reached a $21 million deal with the federal government to settle allegations that the mortgage lender racially discriminated against 20,000 borrowers, the U.S. Department of Justice announced Thursday.

From 2005 to 2009, SunTrust allegedly charged 20,000 African-American and Latino loan recipients higher fees and interest rates than other borrowers based on race and national origin rather than legitimate risk criteria, according to the complaint. That practice violates the Fair Housing Act and Equal Credit Opportunity Act, the Justice Department said.

The Justice...
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