JPMorgan Chase settles US discrimination lawsuit

By Ovunc Kutlu

NEW YORK

JPMorgan Chase agreed Wednesday to a $55 million settlement with the U.S. government after it was accused of engaging in discriminatory practices in its mortgage lending division, the bank told Anadolu Agency.

External Communications Manager Elizabeth Seymour confirmed the figure in an e-mail after the federal lawsuit that was filed in a Manhattan court earlier in the day.

“We’ve agreed to settle these legacy allegations that relate to pricing set by independent brokers,” according to a statement from the bank. “We deny any wrongdoing and remain committed to providing equal access to credit.”

The lawsuit said JPMorgan Chase charged higher rates and fees resulting in millions of dollars in added charges to 53,000 blacks and Hispanics between 2006 and 2009, compared to other borrowers, in violation of the U.S. Fair Housing Act and the Equal Credit Opportunity Act.

The average black borrower paid $1,100 more during the first five years on an average loan of $191,100, while Hispanic borrowers paid $1,000 more on an average loan of $237,000, the government said.

JPMorgan Chase reached a $13 billion settlement in 2013 with the Justice Department for its mortgage practices.

The bank, along with Bank of America, Citibank and Goldman Sachs have paid more than $40 billion since 2012 for related activities that led to the 2008 financial crisis.