Mortgage lender settles $2.9 million discrimination lawsuit with FTC

Gateway, a mortgage lending company, agrees to pay $2.9 million settlement to FTC. Company allowed loan officers to charge overages to African-Americans and Hispanics.

According to Wikipedia, the Equal Credit Opportunity Act (ECOA) is a United States law enacted in 1974, that makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status, or age.

December 18, 2008, West Palm Beach, FL (–Justice discrimination news reporters and loan applicant discrimination lawyers report a recent mortgage lender settlement with the U.S. Federal Trade Commission (FTC) Gateway Funding Diversified Mortgage Services, L.P., and its general partner, Gateway Funding Inc., based in Horsham, Pennsylvania, violated the Equal Credit Opportunity Act (ECOA) in pricing both prime and sub-prime mortgage loans. Gateway’s policy and practice of allowing loan officers to charge discretionary overages resulted in African-Americans and Hispanics being charged higher prices because of their race or ethnicity. Gateway paid loan officers a percentage of these overages and failed to monitor whether African-American and Hispanic consumers were paying higher overages than non-Hispanic white borrowers.

FTC officials, West Palm Beach discrimination lawyers with unfair business practices, and Justice price disparities news reporters agree unlawful discrimination in mortgage pricing is intolerable. The FTC Chairman William E. Kovacic states, “Discretionary pricing policies must be crafted and monitored carefully so that all applicants are treated fairly.” The mortgage lending company gave loan officers nearly complete discretion to charge, in addition to the risk-based price, “overages” that included higher interest rates and higher up-front charges. Hispanic and African-American consumers were paying higher overages than non-Hispanic white borrowers.

JNF minorities rights news reporters and West Palm Beach discrimination attorneys assert if you have been a victim of bias based on race, color, religion, national origin, sex, marital status, or age you may be entitled to compensation.

News Contributor: Justice news correspondent specializing in discrimination legal news.

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