Mortgage Company To Pay $2.1 Billion In HUD Discrimination Settlement
WASHINGTON (AllPolitics, April 3) -- Accubanc Mortgage Corporation of Dallas,Texas, has agreed to a pay $2.148 billion in a settlement with the Department of Housing and Urban Development for discrimination in loan practices.
HUD Secretary Andrew Cuomo announced the largest settlement ever in an unfair housing dispute.
Accubanc will make the money available through mortgage loans and program development to increase home ownership over the next three years. The loans will allow 15,700 low- and moderate-income families and minority families to obtain home mortgages that were previously denied. Accubanc is expected to take a loss on the loans, although the dollar figure was not immediately
The Fort Worth Human Relations Commission and the City of Dallas filed two discrimination complaints in November 1997 based on tests conducted by the Fort Worth Commission under a HUD grant. The complaints alleged discrimination based on race and national origin in Accubane's lending practices.