Bank of America has agreed to pay $335 million to resolve allegations that its Countrywide unit engaged in a widespread pattern of discrimination against qualified African-American and Hispanic borrowers.
The settlement with the U.S. Justice Department was filed Tuesday with the Central District court of California and is subject to court approval. The DOJ says it’s the largest settlement in history over residential fair lending practices.
The Justice Department investigated Countrywide for abusive lending practices for mortgage loans made between 2004 and 2008.
Charlotte, N.C.-based Bank of America Corp. bought the nation’s largest subprime lender, Countrywide Financial Corp., in 2008.
The settlement amount will be used to compensate victims of Countrywide’s discriminatory mortgage loans from 2004 through 2007.
Bank of America’s shares are trading slightly lower Wednesday and the stock is down 61% year-to-date. (AP)
