Mortgage brokerages to pay restitution to borrowers

Two mortgage brokerage companies, HCI Mortgage and Consumer One
Mortgage, will pay $665,000 collectively in restitution to
approximately 455 African American and Latino borrowers who were
illegally charged higher fees than white borrowers. The two companies
operate over 20 branches around the state. The Attorney General’s
office, the state Banking Department and fair lending experts found
that African American and Latino borrowers were charged several
thousand dollars more in up-front fees than white borrowers. State and
federal law prohibit mortgage brokers from charging more based on a
customer’s race or ethnicity. Attorney General Andrew Cuomo also filed
a lawsuit in federal district court against U.S. Capital Funding,
another mortgage brokerage company, for similar discriminatory
practices. TRD