JPMorgan settles discrimination suit for $55M

US Attorney accused bank of overcharging minorities for mortgages

New York /
Jan.January 18, 2017 11:37 AM

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


Related Articles

arrow_forward_ios
(iStock/Illustration by Kevin Rebong for The Real Deal)
State will use undercover testers to combat housing discrimination
State will use undercover testers to combat housing discrimination
Jerome Powell (Getty)
Powell sees new opportunity to reform low-income lending rule
Powell sees new opportunity to reform low-income lending rule
Sen. Anna Kaplan (Photos via Wikipedia Commons; iStock)
NY Senate to pass housing discrimination bills
NY Senate to pass housing discrimination bills
New York Senators James Skoufis, Kevin Thomas, and Brian Kavanagh. (Facebook via Skoufis, Thomas, and Kavanagh respectfully)
Lawmakers call for stiff penalties, reform after housing discrimination probe
Lawmakers call for stiff penalties, reform after housing discrimination probe
President Joe Biden (Getty)
Biden exec order lays foundation for restoring fair-housing rule
Biden exec order lays foundation for restoring fair-housing rule
55-15 Grand Avenue, Queens; Phil A. Belling of LBA Realty; Jamie Dimon of JPMorgan Chase (Getty, RXR/BL Architects)
LBA lands $316M loan for Amazon warehouse in Maspeth
LBA lands $316M loan for Amazon warehouse in Maspeth
National Association of Realtors president Charlie Oppler (Photo via NAR; iStock)
NAR apologizes for housing discrimination
NAR apologizes for housing discrimination
 JPMorgan’s Marianne Lake (Getty, iStock)
JPMorgan walks back some mortgage constraints
JPMorgan walks back some mortgage constraints
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...