Illinois Attorney General Sues Countrywide for Discrimination against African-American and Latino Borrowers

Attorney General Lisa Madigan announced that she has filed a lawsuit against Countrywide, a subsidiary of Bank of America, for unlawfully discriminating against African American and Latino borrowers in home mortgage sales, in violation of the Illinois Human Rights Act and the Illinois Fairness in Lending Act. The Attorney General filed her complaint in Cook County Circuit Court against Countrywide Financial Corporation; Countrywide Home Loans, Inc.; and Full Spectrum Lending, Inc., an arm of Countrywide that mostly sold subprime loans.
 
Madigan’s complaint alleges that the former mortgage giant steered African American and Latino borrowers into risky subprime mortgages more often than similarly-situated white borrowers. The complaint also alleges that minority borrowers paid more for mortgages across Countrywide’s product line, including its prime loans. Significantly, Madigan’s analysis of Countrywide loan data found that the racial disparities could not be explained by objective factors, such as borrowers’ credit scores or debt-to-income ratios.
 
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Illinois homeowners who believe they may be victims of Countrywide's discriminatory lending practices should contact the Attorney General's office via a special e-mail address at CountrywideDiscrimination@atg.state.il.us or by calling the Attorney General’s Homeowners Helpline at 1-866-544-7151.
 
Madigan also reminded homeowners that her Web site, at www.IllinoisAttorneyGeneral.gov, provides resources to assist homeowners in crisis including her Illinois Mortgage Lending Guide, a resource manual containing step-by-step instructions for those struggling to make their loan payments and a list of HUD-certified counseling agencies that offer default counseling services. Homeowners who do not have easy access to the Internet should call the Attorney General's Helpline, to quickly receive the guide by mail. 
 
Related: Attorney General Madigan joins U.S. Attorney General Eric Holder to Announce National Sweep Against Mortgage-Related Fraud