Keywords: discrimination, Black, subprime mortgage, housing

Two mortgage brokers have agreed to pay restitution for discriminating against traditionally underrepresented borrowers as part of a settlement with the state of New York, reports The New York Times. An investigation by the state attorney general's office and the New York State Department of Banking found that HCI Mortgage of Lake Ariel, Pa., and Consumer One Mortgage of Ronkonkoma, N.Y., charged higher fees to Black and Latino clients than to whites with similar qualifications.

The two brokers agreed to pay $655,000 to 455 Black and Latino customers who got mortgages between 2005 and 2007. Each borrower should get about $1,440, although some paid much more in higher fees. According to the investigation, Latinos who borrowed from HCI paid 55 percent more in fees than whites, while Blacks paid 46 percent more.

Both companies also agreed not to dispute the results of the investigation, which also led to accusations of discrimination against a third mortgage broker, U.S. Capital Funding of East Islip, N.Y. The attorney general's office has filed a lawsuit seeking restitution for Black and Latino borrowers who got loans from that broker.

Click here to read the full story in The New York Times.

Click here to read "The Housing Crisis: Blacks & Latinos Targeted" on DiversityInc.com.