Mortgage

MortgageIT pays $12.1 to resolve discrimination practices

The U.S. Department of Housing and Urban Development announced MortgageIT, Inc., an indirect subsidiary of Deutsche Bank, has agreed to pay $12.1 million under a Conciliation Agreement with HUD resolving allegations that the residential lender discriminated against African American and Hispanic borrowers seeking mortgage loans, the department said in a press release.

The lender was alleged to have charged minority borrowers higher annual percentage rates and fees than similarly-situated white borrows.

“It’s creditworthiness and ability to pay that matter when you apply for a loan, not your race or where you come from,” said Bryan Greene, HUD’s acting assistant secretary for fair housing and equal oppportunity.  “This settlement reaffirms HUD’s commitment to ensuring that minorities have equal access to mortgage loan products and that lending institutions meet their obligations under the Fair Housing Act.”

3d rendering of a row of luxury townhouses along a street

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