Categorized | Finance and Mortgage

Bank of America Looks to Settle Fair-Lending Issue

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Bank of America may finally be able to put an end to the fair-lending probe that has largely affected their business operations over the last few months. The most recent press release from the bank indicates that it is nearing a settlement with the United States Justice Department that will ultimately work well for both parties.

While most of the details regarding the settlement are not known at this time, the bank revealed that it would be distributing more money to Countrywide customers as a form of compensation.

The probe and lawsuit against Bank of America came about due to questionable lending practices, including the possible pricing and product placement discrimination against minorities or those with low-income. Acquisitions have come out against that company indicating that certain groups were pushed to certain products based upon their ethnicity and economic situation, thus violating fair-lending standards. More specifically, the company is being accused of pushing subprime mortgages to minorities even when they qualified for a standard loan.

The acquisition of Countrywide has caused nothing but trouble for Bank of America. The bank has since seen its stock shares drop into a freefall, and many worry that the shares will continue to drop in the coming months. Shares fell more than sixty percent in 2011.

If the settlement is approved, Bank of America will have been the largest bank and lending firm to settle a probe and lawsuit with the United States Justice Department. The bank hopes that a settlement will allow it to better focus on regenerating revenue and profit so as to improve the performance of its stock shares.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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