Provident Funding Settles with Feds on Claims of Predatory Mortgage Lending
Mortgage 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.