Provident Funding Settles with Feds on Claims of Predatory Mortgage Lending

provident-fundingMortgage lender Provident Funding engaged in a pattern and practice of discrimination, illegally targeting African-American and Hispanic homeowners, according to a settlement it entered into with the federal government.

The U.S. Department of Justice, together with the Consumer Financial Protection Bureau, filed a complaint and settlement against Provident Funding for illegal mortgage lending, also called predatory lending.

Provident Funding is allegedly charged “thousands of African-American and Hispanic borrowers higher fees on mortgage loans not based on borrower risk, but because of their race or national origin.”

“Consumers should never be charged higher fees because of their race or national origin,” said CFPB Director Richard Cordray.

Under the terms of the proposed settlement, Provident Funding will pay $9 million dollars into a fund for the benefit of victims of its alleged mortgage lending discrimination.

Press Release from Department of Justice



CULIK LAW is a Massachusetts based law firm who believes in doing good work in our New England community to help individuals Champion Your Rights. We help clients with debt, credit reporting, mortgage, consumer protection, employment, and personal injury. If your rights are being violated or you need a new beginning, we want to hear about it and find a way to help.