MortgageIT, Inc. offers residential mortgage solutions to purchasers of residential properties at select luxury resorts across the Caribbean and Latin America. The company focuses on originating and lending residential mortgage loans in the United States. It originates residential mortgage loans including prime adjustable-rate (ARM) and fixed-rate, first-lien residential mortgage loans, sub-prime mortgage loans, home equity lines of credit, and second lien loans. The company also originates prime first lien conventional and non-conventional, conforming single-family residential mortgage loans; non-conforming first lien single-family residential mortgage loans, such as jumbo loans, non-prime ...
33 Maiden Lane
6th and 7th Floor
New York, NY 10038
Founded in 1988
MortgageIT, Inc. Agree to $12.1 Million Settlement of Lending Discrimination Claims
Nov 5 13
The U.S. Department of Housing and Urban Development (HUD) announced that MortgageIT, Inc., has agreed to pay $12.1 million under a Conciliation Agreement with HUD resolving allegations that the residential lender discriminated against African American and Hispanic borrowers seeking mortgage loans. HUD had alleged that the lenders practices contributed to minority borrowers being charged higher Annual Percentage Rates (APRs) and fees than similarly-situated white borrowers, and denied minority applicants loans more often than similarly-situated white applicants. The Fair Housing Act prohibits housing discrimination in mortgage lending and real estate-related transactions based on a persons race, color, national origin, religion, sex, familial status and disability. This agreement is the result of a complaint that HUDs Assistant Secretary for Fair Housing and Equal Opportunity filed against MortgageIT, alleging that the company discriminated against African American and Hispanic borrowers by underwriting, approving, purchasing, and securitizing mortgage loans in a manner that allowed pricing and denial disparities on the basis of race and national origin. A HUD review of MortgageITs 2007 and 2008 internal loan data alleged that African American and Hispanic borrowers paid APRs that were eight to ten basis points higher, on average than similarly-situated white borrowers. In addition, HUD alleged that African American borrowers were 65% and Hispanic borrowers 72% more likely to receive higher priced loans than similarly-situated white borrowers, African American and Hispanic borrowers also allegedly paid, on average, $707 and $906 more in fees, respectively. HUD also alleged that African-American applicants were 45% more likely to be denied a mortgage loan than similarly-situated white borrowers. Hispanic applicants were allegedly 35% more likely to be denied. Under the terms of the agreement, MortgageIT will establish a $12.1 million fund to compensate borrowers nationwide who were unfairly been denied a loan or whose loans may have contained terms and conditions that violate the Fair Housing Act. Any funds remaining after all victims have been compensated will be distributed to qualified organizations that provide credit and housing counseling, financial literacy, and other related programs that assist African American and Hispanic potential, current, and former homeowners.