The U.S. government sued JPMorgan Chase for discriminating against minority borrowers by charging them higher rates and fees on home mortgage loans. Bobbi Rebell reports.
The U.S. government is suing JPMorgan Chase for discriminating against minority borrowers. The lawsuit accuses the bank charged them higher rates and fees on home mortgage loans between 2006 and at least 2009. The alleged discrimination involved so-called wholesale loans made through mortgage brokers. The complaint said, Chase allowed them to change rates without giving any reason, and failed to address racial discrimination, encouraging it to continue. Robert Heim of law firm Meyers & Heim says JPMorgan disclosed the investigation in its SEC filling and settled the suit to avoid litigation costs: (SOUNDBITE) ROBERT G. HEIM, ATTORNEY AT LAW, MEYERS & HEIM LLP, (ENGLISH) SAYING: "The terms of the settlement are, as it's typical in this scenario, done without admitting any wrongdoing, but the key part of the settlement is the agreement by JPMorgan to pay $55 million in civil penalties to address the alleged Fair Housing Act violations. So, it's quite significant number. It's meant to deter and to help JPMorgan understand that the DOJ is going to be very aggressive in enforcing this statue." JPMorgan Chase did not immediately respond to requests for comment. The bank got hit with another lawsuit on Wednesday, this time for pay discrimination against women.