Bank of America's Settlement on Predatory Lending

Bank of America on December 21, 2011 settled with the US Department of Justice, and agreed to pay $335 million for its Countrywide's discriminatory lending practices against more than 200,000 minority customers. The pattern and practice covered between 2004 and 2008. During that time, it had also steered more than 10,000 minority customers to subprime mortgage pool while giving the White customers of similar risks prime mortgages. However, December 21, 2011, settlement may not be the end of headache for Charlotte-based financial institution. State Attorney Generals are in the final stage of negotiation with the loan servicers on improper foreclosure practices. The bills may easily reach as high as $20 billion. The remnants of Countrywide agreed in June 2010 to pay $108 million to settle federal charges that the lender exorbitantly slapped fees on customers struggling to keep their homes.