Provident Funding Settles with Feds on Claims of Predatory Mortgage Lending
The U.S. Department of Justice, together with the Consumer Financial Protection Bureau, filed a complaint and settlement against Provident Funding for illegal mortgage lending, also called predatory lending.
Provident Funding is allegedly charged “thousands of African-American and Hispanic borrowers higher fees on mortgage loans not based on borrower risk, but because of their race or national origin.”
“Consumers should never be charged higher fees because of their race or national origin,” said CFPB Director Richard Cordray.
Under the terms of the proposed settlement, Provident Funding will pay $9 million dollars into a fund for the benefit of victims of its alleged mortgage lending discrimination.