The subprime mortgage crisis of 2008 came and went, but Emigrant Savings Bank continued to offer predatory loans to minority homeowners, a Brooklyn jury found Monday.
Ending a month-long trial, the jury concluded that the New York City-based bank headed by Howard Milstein, discriminated against eight minority homeowners by marketing “highly abusive” loans with interest rates of up to 18 percent, according to the New York Times.
Homeowners, including a home health aide and Rikers Island employee, filed a lawsuit against Emigrant in 2011, claiming the bank targeted minority borrowers with low credit scores. The bank allegedly offered the minority homeowners offered no-income refinancing loans between 2005 and 2009. [more]