Mass. minority borrowers to get payments
BOSTON (AP) -- Minority mortgage borrowers in Massachusetts affected by discriminatory lending practices have received payments as part of a $1.75 million settlement.
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.