NEW YORK -- A Wall Street home mortgage lender catering to the New York, New Jersey and Florida markets has agreed to pay $3.5 million to settle a housing discrimination lawsuit.
Federal prosecutors in Manhattan announced the deal with GFI Mortgage Bankers Inc. on Tuesday. The deal settles a lawsuit alleging blacks and Hispanics were charged more for loans than similarly qualified non-Hispanic white borrowers between 2005 and 2009.
The government says the money will be used to reimburse about 600 black and Hispanic borrowers who overpaid.
The settlement also calls for GFI to take steps to ensure disparities do not resume.
GFI lawyer Andrew Sandler says the company denied the discrimination claims but preferred to settle the case on affordable terms.