JPMorgan settles discrimination suit for $55M

US Attorney accused bank of overcharging minorities for mortgages
January 18, 2017 11:37AM

Preet Bharara and Jamie Dimon (Credit: Getty Images)

JPMorgan Chase agreed to pay $55 million to settle charges that independent mortgage brokers working with the bank discriminated against minorities.

In a complaint filed Wednesday, U.S. Attorney for the Southern District of New York Preet Bharara alleged that the brokers charged black and hispanic borrowers higher rates than their white peers between 2006 and 2009. The complaint alleged that the bank “could have, but failed, to better monitor its wholesale brokers to discourage discrimination.”

The 1968 Fair Housing Act makes racial discrimination in the housing market illegal.

According to the complaint, when compared to white customers, the bank charged black customers an average of $1,126 more on an average loan size of $191,100 and Hispanic customers $968 more on a loan size of $236,800, the Wall Street Journal reported.

A JPMorgan spokesperson told the Journal that the bank denies any wrongdoing. [WSJ]Konrad Putzier