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MA Victims of Discriminatory Lending Receive Payments

Money

Minority mortgage borrowers in Massachusetts affected by discriminatory lending practices have received payments as part of a $1.75 million settlement. WAMC’s Lucas Willard reports…

State Attorney General Martha Coakley said Friday that 2,100 affected borrowers will receive checks ranging from $100 to $5,000 as part of a settlement with Sand Canyon, an H&R Block subsidiary, formerly known as Option One. A total of $1.75 million in payments has been disbursed to minority borrowers, Coakley's office said.

The attorney general said Option One "discriminated against African-American and Latino borrowers" and contributed to the economic collapse by making loans that it knew would likely fail.

The settlement with Coakley's office requires Option One to pay nearly $10 million for lending practices, that the attorney general alleges caused minority borrowers to pay more money for their loans than others.

Copyright 2012 The Associated Press. All Rights Reserved.

Lucas Willard is a reporter and host at WAMC Northeast Public Radio, which he joined in 2011.