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
Fair Housing Justice Center President Bernhard Blythe and Eastchester (Blythe Designs, Getty)
Discrimination suit prompts suburb to change Section 8 housing policy
Discrimination suit prompts suburb to change Section 8 housing policy
JPMorgan CEO Jamie Dimon and 270 Park Avenue (Getty, Google Maps)
JPMorgan Chase will embrace “flexible” design for 270 Park HQ
JPMorgan Chase will embrace “flexible” design for 270 Park HQ
The Department of Justice’s Civil Rights Division settled a lawsuit with Village Realty of Staten Island and Denis Donovan. (Getty, iStock)
Feds settle housing discrimination lawsuit against firm, broker
Feds settle housing discrimination lawsuit against firm, broker
David Wolkoff of G&M Realty. (Getty, 5Pointz LIC)
Wolkoff family firm snags $350M loan for 5Pointz
Wolkoff family firm snags $350M loan for 5Pointz
The “flexible hybrid model” is set to debut in July in North America (iStock)
Et tu, Ford? Automaker lets 30K workers stay home post-pandemic
Et tu, Ford? Automaker lets 30K workers stay home post-pandemic
(Getty, iStock)
Flood costs are highest in formerly redlined areas
Flood costs are highest in formerly redlined areas
Aaron Carr of Housing Rights Initiative (Facebook, iStock)
Housing Rights probe accuses brokerages, landlords of Section 8 discrimination
Housing Rights probe accuses brokerages, landlords of Section 8 discrimination
In 2018, a Brookings Institution study found homes in majority-Black neighborhoods were undervalued by $48,000 on average. (iStock)
Appraisal Institute taking steps to root out racial bias
Appraisal Institute taking steps to root out racial bias
arrow_forward_ios

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

Loading...