Mortgage Lender Pays $3M To Settle Loan Discrimination Suit

Law360, New York (September 27, 2013, 11:27 AM EDT) -- Plaza Home Mortgage Inc. on Friday agreed to pay $3 million to African-American and Hispanic borrowers, settling allegations that the California mortgage lender discriminated against these clients by arbitrarily overcharging them for loans based on race.

The settlement snuffs out the suit one day after it was filed by federal authorities, and requires Plaza to establish race- and national origin-neutral standards for the assessment of broker fees and more closely monitor its wholesale mortgage loans, the Justice Department said on Friday.

"It is patently wrong for...
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