BofA to pay $335m over loans bias claims
Bank of America will pay $335m to resolve US allegations that the lender discriminated against African-American and Hispanic borrowers, the latest in a series of legal and costly problems the bank has inherited from its troubled Countrywide unit.
http://www.ft.com/cms/s/0/c65efdb4-2c1e-11e1-b7df-00144feabdc0.html#axzz1hDYy406J
Buried in the story are a few other tidbits:
"The money will be distributed to aggrieved borrowers for an average amount of about $1,600. According to the complaint filed in federal court, some borrowers were allegedly overcharged by hundreds of dollars. Others paid thousands of dollars extra due to the alleged discrimination."
"Investors are trying to force BofA to swallow tens of billions of dollars in losses over allegedly defective home loan bonds, state and federal prosecutors are trying to extract billions of dollars from the bank for its alleged mistreatment of distressed borrowers, and other regulators are probing its lending and servicing activities."
AND
wayyy at the bottom, is the fact that Ilinois AG has settled with BAC in the above suit, also.
"The settlement resolves a separate lawsuit launched by Lisa Madigan, Illinois attorney-general, against BofA for allegedly discriminating against her state’s borrowers. Ms Madigan began her probe of Countrywide in 2008. At least $20m will be reserved for aggrieved borrowers in Illinois"
Gee, BOa has a LOT on its plate.
