(Provides settlement particulars, Bank of America remark, NEW YORK
WASHINGTON/NEW YORK, July 23 (Reuters) – Bank of America
Corp agreed on Thursday to settle U.S. Division of
Justice claims it illegally denied mortgages and residential fairness
loans to adults with disabilities who had been beneath authorized
guardianships or conservatorships.
The second largest U.S. bank had adopted the lending coverage
in January 2010 in response to the worldwide monetary disaster, to
defend “at-risk” loan candidates from being exploited.
However the Justice Division stated the coverage, which the
Charlotte, North Carolina-based bank has discontinued, amounted
to incapacity discrimination beneath the federal Truthful Housing Act.
Bank of America agreed within the settlement to pay $4,000 to
compensate every affected loan applicant, with funds anticipated
to whole about $300,000, the Justice Division stated.
The bank denied legal responsibility in agreeing to the settlement,
which requires approval by a federal decide in Brooklyn.
Bank of America ended the coverage for mortgages in 2016 and
for residence fairness loans in 2017.
In an announcement, Bank of America stated it has an “excellent
file” of supporting shoppers and workers with disabilities,
and its Incapacity Advisory Council works to enhance technique.
In response to courtroom papers, the Justice Division started
probing the bank’s lending practices in December 2016, and
suggested in September 2019 it had been licensed to file a
(Reporting by Chris Prentice in Washington and Jonathan Stempel
in New York; Modifying by Leslie Adler and Jonathan Oatis)