Lender agrees to pay $9 million to settle mortgage lending discrimination charges

The Justice Department and Consumer Financial Protection Bureau have filed a consent order to resolve allegations that Provident Funding Associates engaged in a pattern or practice of discrimination. The consent order resolves allegations that Provident increased loan prices for African-American and Hispanic borrowers who obtained residential mortgages between 2006 and 2011 from Provident’s nationwide network of mortgage brokers.

Under the proposed settlement, which requires court approval, Provident will pay $9 million dollars into a fund for the benefit of victims of the mortgage lending discrimination. 

The Department of Justice press release has the details.

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