Countrywide's Lending Practices Cost BofA $335 Million
Attorney General Eric Holder announced one of the biggest fair-lending settlements in U.S. history with Bank of America agreeing to pay $335 million to settle complaints levied against Countrywide Financial Corp. by the Department of Justice.
During a press conference Wednesday, Holder said that his office investigated discriminatory lending practices that impacted 200,000 African American and Hispanic homebuyers in 180 geographic markets and 41 states across America.
Holder said his office found qualified minority borrowers were steered by Countrywide, which is now part of BofA, into subprime loans that come with higher penalties, fluctuating interest rates and a higher chance of default.
To settle the dispute, Holder said BofA agreed to pay $335 million in compensation to impacted borrowers.
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