AccuBanc Settles Mortgage Bias Case
A mortgage lender in Texas has agreed to make $2.1 billion in loans to minorities and low- and moderate-income applicants over the next three years to settle housing discrimination complaints, the Housing and Urban Development Department said. Housing Secretary Andrew Cuomo called the settlement with Dallas-based AccuBanc Mortgage Corp. the largest of its kind. The company also agreed to pay an additional $24 million to help its clients pay closing costs. “About 15,000 low- and moderate-income people now will be able to buy their own homes,” Cuomo said at a news conference. The deal came after complaints to HUD led to a probe in which white, black and Latino investigators were sent to AccuBanc posing as loan applicants. The investigation found alleged discrepancies in how white and minority applicants were treated. AccuBanc said the settlement was the best way to quickly make needed changes.