08/09/2011 02:37 pm ET Updated Oct 09, 2011

$125 Million Subprime Lending Settlement Reached In Massachusetts

Thousands of black and Latino homeowners in Massachusetts will likely save money under a $125 million subprime lending settlement with a subsidiary of H&R Block Inc. unveiled today by attorney general Martha Coakley. The agreement resolves allegations of unfair lending and discriminatory practices by Sand Canyon, formerly known as Option One.

Under the deal, Sand Canyon, based in Irvine, Calif., will pay $9.8 million to the state and direct American Home Mortgage Servicing Inc. -- which services about 5,500 loans in Massachusetts that originated with Option One -- to begin a $115 million loan modification program.