Countrywide sued for racial bias in mortgage loans
|
|
|
By Jonathan StempelNEW YORK (Reuters) - Four black homeowners sued Countrywide Financial Corp. on Thursday, accusing the largest U.S. mortgage lender of racial discrimination in its lending practices.The Massachusetts homeowners accused Countrywide and several affiliates of marking up interest rates or tacking on fees after agreeing to lend based on objective criteria such as credit histories or the values of homes.Such actions, the plaintiffs alleged, have in practice subjected black applicants to "a significantly higher likelihood of exposure to discretionary points, fees and interest mark-ups." This violates the federal Fair Housing Act and Equal Credit Opportunity Act, according to the complaint.The lawsuit is the second in as many days to accuse Calabasas, California-based Countrywide of bias often known as "predatory lending."On Wednesday, the National Association for the Advancement of Colored People accused Countrywide and 13 other lenders of steering blacks into higher-cost loans than white borrowers.Both lawsuits seek class-action status. Thursday's lawsuit was filed with the U.S. District Court in Massachusetts, while the NAACP sued in the federal court in Los Angeles.Countrywide makes roughly one in six U.S. home loans. The company and lawyers for the Massachusetts plaintiffs did not immediately return calls seeking comment.Predatory lending is often used to describe charging high rates or fees to borrowers who may not be able to afford them.The Massachusetts plaintiffs want Countrywide to halt any racially discriminatory lending practices, reimburse unfair charges and pay punitive damages, among other remedies.Countrywide shares closed up 51 cents at $36.68 on the New York Stock Exchange on Thursday. They have fallen 13 percent this year.(Additional reporting by Christian Plumb and Walden Siew)
(c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
HP sees 'encouraging signs of recovery,' profit climbs 14 per cent
San Francisco - The world's biggest computer maker Hewlett Packard said Monday that it saw encouraging signs of recovery as its quarterly earnings rose 14 per cent. The Silicon Valley company said it earned 2.4 billion dollars in the quarter, up fr...
US stocks gain on surprise home sales recovery
New York - US stocks surged Monday after the release of some surprisingly buoyant data on home sales. Existing home sales surged to 6.1 million units in October, the highest annualized rate since February 2007 and up 10.1 per cent from September, acc...
Report: Microsoft and News Corp in search pact talks
San Francisco - Microsoft and News Corp are in advanced negotiations that would see the media conglomerate's content removed from Google's search index and appear exclusively via Microsoft's Bing search engine, the Financial Times reported Monday. Ne...
US home sales surge to highest level since 2007
Washington - Existing home sales surged more than 10 per cent in the United States in October to their highest level since February 2007, according to figures released Monday. The monthly data by the National Association of Realtors (NAR) beat expect...
US economists: 'Jobless' recovery to reach bottom at start of 2010
Washington - The US economy will start adding jobs some time in the first quarter of 2010, ending a so-called jobless recovery that has plagued the world's largest economy since the summer months, according to a survey released Monday. But the Nati...
Hershey, Nestle, sweeten war for Cadbury
Washington - Hershey and Nestle are expected to jump into the war over Cadbury sweets, media reports said Saturday, just weeks after the British-based stalwart rejected a hostile bid by US Kraft Inc. The growing market for chocolate in the developing...
US stock drop slightly on Dell profits, mixed for week
New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
|
|
|
|
|
|
|
|
