GFI Mortgage Bankers reached a settlement with the U.S. Department of Justice, ending a probe into allegations that the lender hit minority borrowers with higher rates and fees.
The mortgage lender noted in a letter to the U.S. District Court of the Southern District of New York that the parties have settled the case.
The notice filed with the court does not include a settlement amount or terms and conditions of the agreement.
In the original lawsuit, GFI was accused of violating the Fair Housing Act and the Equal Credit Opportunity Act by charging minority borrowers more for loans when compared to similarly situated nonminority borrowers.
The loans that became subject of the suit were initiated from 2005 through 2009.
GFI had pushed back early on in the case saying the DOJ’s claims failed to establish a link between the firm’s policies and the lending disparities outlined in the suit.
