Mortgage Company to Pay $8M in Lending Discrimination Settlement

A mortgage company accused of engaging in a pattern of lending discrimination by redlining predominantly Black neighborhoods in Alabama has agreed to pay $8 million plus a nearly $2 million civil penalty to resolve the allegations, federal officials said Tuesday.

Redlining is an illegal practice by which lenders avoid providing credit to people in specific areas because of the race, color, or national origin of residents in those communities, the U.S. Department of Justice said in a news release.

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