article by Adebola Adeniyi via venturesafrica.com
On Wednesday, a United States Attorney, Preet Bharara, filed a suit in Manhattan against multinational bank, JPMorgan Chase & Co., after over 53,000 African-American and Hispanic borrowers were charged more for home loans than white borrowers with the same credit and risk profiles by the bank’s authorised mortgage brokers.
JPMorgan Chase & Co was indicted by the mortgage brokers the bank engages in originating loans, and in this case, wholesale loans were disbursed to clients. According to an allegation made by a compliant, Chase allowed brokers to change rates charged for loans from those initially set based on objective credit-related factors.
The banking institution was found guilty of knowingly violating the US Fair Housing Act and the Equal Credit Opportunity Act between 2006 and 2009. There were claims that the bank acted with careless disdain towards over 53,000 African-American and Hispanic borrowers. The spokeswoman for JPMorgan, Elizabeth Seymour said the bank agreed to settle the allegation made by the complaint but denies any form of misconduct reaffirming that the bank is dedicated to providing equal access to credit.
To read full article, go to: JPMorgan to pay $55 million in racial discrimination suit – Ventures Africa