Madigan, U.S. DOJ Reach $335 Million Settlement With Countrywide/Bank Of America Over Discriminatory Lending

Attorney General Lisa Madigan and the U.S. Department of Justice today announced a $335 million joint settlement with Countrywide, a subsidiary of Bank of America, over allegations that the former mortgage giant steered African-American and Latino borrowers into risky subprime loans more often than similarly situated white borrowers and charged them more for their loans during the height of the nation’s housing boom.
 
The joint settlement reached by Madigan and Department of Justice officials resolves allegations by Madigan and the DOJ of widespread and illegal discrimination against minority borrowers at Countrywide, which was purchased by Bank of America shortly after its collapse in 2008.
 
“Countrywide consistently sold African-American and Latino borrowers riskier loans at a higher cost than similarly credit-situated white borrowers. Even when Countrywide sold minorities prime loans, they paid more than white borrowers,” said Attorney General Madigan. “Now, African Americans and Latinos are still paying a higher price. No one can dispute that minority communities have been hit hardest by this crisis and will feel its effects longer.
 
“This settlement upholds the basic American tenet of justice and fairness for all,” Madigan said. “People’s access to credit, and the terms of their credit, should be determined on an equal basis, not on the basis of the color of their skin.”
 
Today’s settlement provides for an independent administrator to contact and distribute compensation payments to borrowers identified by the Department of Justice as victims of Countrywide’s discrimination. Eligible borrowers will be contacted by the administrator. Individuals who believe they were victims of Countrywide lending discrimination and have questions about the settlement may email countrywide.settlement@usdoj.gov. 
 
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