J.P. Morgan to Pay $55 Million to With U.S. Over Alleged Discrimination Against Minority Homeowners
January 18 2017 - 10:32AM
Dow Jones News
By Emily Glazer and Austen Hufford
J.P. Morgan Chase & Co. will settle with U.S. Attorney Preet
Bharara for $55 million over allegations that independent brokers
doing business with the bank discriminated against minority
mortgage seekers, a person familiar with the matter said.
The settlement is related to a complaint Mr. Bharara filed
Wednesday alleging that J.P. Morgan Chase Bank charged
African-American and Hispanic borrowers higher rates than white
borrowers from 2006 to 2009, in violation of the Fair Housing
Act.
A J.P. Morgan spokeswoman said the bank agreed to settle "these
legacy allegations that relate to pricing set by independent
brokers." She added that the bank denies any wrongdoing and is
committed to providing equal access to credit.
According to the complaint, until late 2009, the bank used a
network of contracted mortgage brokers to bring in loan
applications and that these "wholesale" loans charged
discriminatory rates.
The bank "could have, but failed, to better monitor its
wholesale brokers to discourage discrimination," the complaint
reads.
The Justice Department didn't immediately respond to request for
comment on the settlement.
Write to Emily Glazer at emily.glazer@wsj.com and Austen Hufford
at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 18, 2017 10:17 ET (15:17 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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