Countrywide Financial was once the largest mortgage lender in the U.S., but behind its success was a pattern of discrimination and predatory lending. In 2011, the Department of Justice (DOJ) reached a $335 million settlement with Countrywide after uncovering that African-American and Hispanic borrowers were systematically charged higher mortgage rates and steered into costly subprime loans.
In our latest live stream, we break down how this case exposed widespread mortgage discrimination, led to new legal precedents, and how similar practices still affect minority homebuyers today.
How Countrywide Discriminated Against Borrowers
Countrywide used a lending model called disparate impact, meaning that even though the company didn’t have an official policy of racial discrimination, its lending practices still disproportionately harmed minority borrowers. Here’s how:
✔️ Higher Mortgage Rates – Black and Hispanic borrowers were charged higher interest rates than white borrowers with similar credit profiles. ✔️ Steering into Subprime Loans – Many minority borrowers who qualified for prime loans were instead placed into riskier, high-cost subprime mortgages. ✔️ ECOA & Fair Housing Violations – These practices violated the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act, which protect against discriminatory lending.
Countrywide’s Role in the 2008 Housing Crisis
Countrywide didn’t just discriminate—it helped fuel the 2008 financial crisis. The company aggressively pushed subprime mortgages, even to borrowers who couldn’t afford them. When the housing market collapsed, millions lost their homes, with minority communities hit the hardest.
After the scandal, Bank of America acquired Countrywide, but the damage had already been done. The DOJ settlement was one of the largest in history, but was it enough?
Why It Still Matters Today
While Countrywide is gone, predatory lending and housing discrimination still exist. Minority homebuyers continue to face higher interest rates, biased loan approvals, and modern-day redlining tactics. Understanding this history is key to fighting for fair housing policies.
Watch the Full Discussion
Want to learn more? Watch our deep dive into the Countrywide lawsuit and its impact on today’s mortgage industry.
📺 Watch now on Rumble: Exposing Countrywide’s Role in Redlining & Predatory Lending
What do you think? Should there be stronger protections against discriminatory lending? Drop a comment and join the discussion!
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