Countrywide Ordered to Pay $335 Million for Lending Bias

Thursday, December 22, 2011

Bank of America, which now owns mortgage giant Countrywide Financial, will pay $335 million for Countrywide discriminating against minorities during the 2004-2008 housing boom. Countrywide brokers are accused of steering blacks and Latinos into more costly home loans than white borrowers with the same financial profile. An estimated 200,000 people were affected.

An estimated 200 thousand borrowers were affected. 

Louise Story, Wall Street and finance reporter for The New York Times, discusses the details of the story.

Contributors:

Louise Story

Comments [1]

listener

In 2007 didn't Bank of America begin a program where they would provide credit cards and loans to undocumented immigrants at a higher rate which was widely reported at the time? Surely that is an "interesting detail" worth mentioning.

"Bank of America is testing the new credit-card program at about 50 Los Angeles branches. Applicants don't need a Social Security number or a traditional credit check to qualify.
Critics are condemning the program, saying the bank is knowingly marketing credit cards to illegal immigrants.
Under the pilot program, cardholders typically put up a deposit to guarantee payment of their credit card bills. They also pay a relatively high interest rate — in some cases, more than 21 percent". NPR 2/13/07

Dec. 22 2011 09:52 AM

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