Calif. Bank Settles DOJ Mortgage Bias Case For $2M

Law360, Los Angeles (September 12, 2012, 11:13 PM EDT) -- California bank Luther Burbank Savings on Wednesday settled federal allegations of discriminatory lending practices, agreeing to invest $2 million to help borrowers in lower-income communities.

According to a complaint filed by the U.S. Department of Justice, Luther Burbank violated the Fair Housing Act by enforcing a minimum loan amount of $400,000 on mortgages for single-family homes.The practice had a disparate impact on African-American and Hispanic borrowers in California from 2006 through 2010, the government said.

“Discriminatory lending practices against minorities threaten the American dream of homeownership,”...
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