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Coakley: ‘Discriminatory’ Lender To Adjust 5,500 Mass. Home Loans

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BOSTON (AP) — About 5,500 Massachusetts homeowners will see their home loans adjusted and about 3,000 black and Latino borrowers will be reimbursed for high fees as part of a settlement with Option One, a subprime lender the state accused in a lawsuit of unfair and discriminatory lending practices.

Massachusetts Attorney General Martha Coakley on Tuesday announced the settlement, valued at $125 million, including an estimated $115 million in home loan adjustments. Option One is now known as Sand Canyon, a subsidiary of H&R Block.

WBZ NewsRadio 1030’s Kim Tunnicliffe reports

The state’s lawsuit alleged Option One made loans it knew or should have known had a high risk of failing.

She said the lawsuit filed in 2008 was the first in the nation alleging civil rights claims against a subprime lender. The settlement was filed late Monday in Suffolk Superior Court.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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