Legal Blog

Compensation and Compliance Matters – November 15, 2013

Avoid ‘Guesstimates’ in Fair Lending Last week, a Deutsche Bank Subsidiary, MortgageIT, entered into a 12 million dollar conciliation agreement to resolve allegations that it violated fair lending laws. The allegations were that African American borrowers and Hispanics on average paid 8 to 10 points higher in price and were 65% and 72% more likely to receive higher priced loan types. In addition, they purportedly paid on average $707 and $906 more in fees than nonminority borrowers. Further, their denial rates were alleged to be 45% and 35% higher, respectively. Read more on National Mortgage News.