J.P. Morgan to Pay $55 Million to With U.S. Over Alleged Discrimination Against Minority Homeowners

By Emily Glazer and Austen Hufford 

J.P. Morgan Chase & Co. will settle with U.S. Attorney Preet Bharara for $55 million over allegations that independent brokers doing business with the bank discriminated against minority mortgage seekers, a person familiar with the matter said.

The settlement is related to a complaint Mr. Bharara filed Wednesday alleging that J.P. Morgan Chase Bank charged African-American and Hispanic borrowers higher rates than white borrowers from 2006 to 2009, in violation of the Fair Housing Act.

A J.P. Morgan spokeswoman said the bank agreed to settle "these legacy allegations that relate to pricing set by independent brokers." She added that the bank denies any wrongdoing and is committed to providing equal access to credit.

According to the complaint, until late 2009, the bank used a network of contracted mortgage brokers to bring in loan applications and that these "wholesale" loans charged discriminatory rates.

The bank "could have, but failed, to better monitor its wholesale brokers to discourage discrimination," the complaint reads.

The Justice Department didn't immediately respond to request for comment on the settlement.

Write to Emily Glazer at [e-mail] and Austen Hufford at [e-mail]

(END) Dow Jones Newswires

January 18, 2017 10:17 ET (15:17 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.