The Justice Department alleges that Countrywide charged a higher interest rate on the mortgages of more than 200,000 minority borrowers, despite the fact that their creditworthiness was comparable to whites who received lower rates. Justice adds that in some cases, Countrywide steered minorities toward subprime loans when they in fact qualified for a traditional loan.
In its press release, the Justice Department adds:
"The complaint further alleges that Countrywide was aware the fees and interest rates it was charging discriminated against African-American and Hispanic borrowers, but failed to impose meaningful limits or guidelines to stop it.
"'Countrywide's actions contributed to the housing crisis, hurt entire communities, and denied families access to the American dream,' said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division."
