Mortgage Daily Logo
mortgage news from industry experts

National City Accused of Discriminatory Pricing

A settlement has been reached over government allegations that National City Bank used discriminatory pricing on mortgage lending to minority borrowers.

National City is accused of charging higher prices on home loans to black and Hispanic borrowers than similarly creditworthy white borrowers.

Such practices violate the Equal Credit Opportunity Act, which prohibits creditors from discriminating against loan applicants on the basis of race or national origin.

The discrimination allegedly took place from 2002 until 2008, a period which reportedly saw more than 1.0 million retail mortgages originated and 0.6 million loans generated through the mortgage broker channel.

The announcement indicated that loan originators and mortgage brokers were given the discretion to price the loans while also being compensated for extra borrower-paid costs.

National City Corp. was acquired in the heat of the financial crisis during 2008 by The PNC Financial Services Group Inc.

PNC has agreed to pay $35 million to settle the charges. The funds will be distributed through a settlement administrator to more than 76,000 harmed black and Hispanic borrowers.

In addition to a proposed settlement filed Monday by the Consumer Financial Protection Bureau and the Department of Justice, a joint complaint was filed in a Pennsylvania federal court.

“Today’s action marks the first joint lawsuit brought in federal court by the CFPB and the DOJ to enforce federal fair lending laws,” the press release stated. “On Dec. 6, 2012, the CFPB and the DOJ signed an agreement that has facilitated strong coordination between the two agencies on fair lending enforcement, including the pursuit of joint investigations such as this one.”

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts