Were Africa-American, Latino homeowners steered to high-cost loans?
Attorney General Lisa Madigan has issued subpoenas to Countrywide Home Loans, Inc., and Wells Fargo Financial Illinois, Inc., to determine whether the lenders unfairly steered African American and Latino borrowers into higher cost home loans in violation of fair lending and civil rights laws. The study also found marked disparities in loan pricing between white and non-white borrowers, with African American borrowers three times as likely as white borrowers to receive a high-cost home loan and Latino borrowers twice as likely. Madigan s probe follows a Chicago Reporter study finding that the Chicago area led the country in high-cost home loans for the second year in a row. Mortgage Crisis? Act Now to Avoid Foreclosure Illinois Subpoenas Countrywide, Wells Fargo Bernanke Urges Banks To Forgive Some Mortgage Debt Cuomo’s Cure for Mortgage Malaise Bankruptcy Filings Soared in February New Home Sales Sink In January Mortgage Applications Drop 20% in a Week FDIC Staffs Up to Handle Bank Fai
