(Provides settlement particulars, Bank of America remark, NEW YORK dateline, bylines) By Chris Prentice and Jonathan Stempel 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 underneath 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 guard “at-risk” loan candidates from being exploited. However the Justice Division mentioned the coverage, which the Charlotte, North Carolina-based bank has discontinued, amounted to incapacity discrimination underneath 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 complete about $300,000, the Justice Division mentioned. The bank denied legal responsibility in agreeing to the settlement, which requires approval by a federal choose in Brooklyn. Bank of America ended the coverage for mortgages in 2016 and for house fairness loans in 2017. In a press release, Bank of America mentioned it has an “outstanding record” of supporting purchasers and staff with disabilities, and its Incapacity Advisory Council works to enhance technique. In keeping with court docket papers, the Justice Division started probing the bank’s lending practices in December 2016, and suggested in September 2019 it had been approved to file a criticism. (Reporting by Chris Prentice in Washington and Jonathan Stempel in New York; Modifying by Leslie Adler and Jonathan Oatis)Our Requirements:The Thomson Reuters Belief Rules.