Mass AG Tags Option One, H&R Block For Alleged Deceptive Practices In Race-Based Discriminatory Predatory Lending Suit

In Boston, Massachusetts, Reuters reports:

• Massachusetts authorities sued H&R Block Inc. on Tuesday, charging that its mortgage unit discriminated against black and Latino borrowers and escalated a crisis over property foreclosures in the state. The lawsuit is the first by a U.S. state to accuse a subprime-mortgage lender of civil rights violations following a wave of foreclosures of homes in poor, often black, neighborhoods nationwide. The complaint, filed in Suffolk Superior Court, accuses H&R's subprime-lending subsidiary, Option One Mortgage Corp, of engaging "in unfair and deceptive conduct on a broad scale."

According to Massachusetts Attorney General Martha Coakley in the lawsuit, Option One and its corporate parent, H & R Block, allegedly marketed loans with layers of risky features, including:

1. 100% Financing,
2. 2/28 Loans with “Teaser Rates”,
3. “Stated Income,” “No-Doc” or “Low-Doc” Loans,
4. Substantial Prepayment Penalties,
5. Lucrative Broker Incentives to Sell Expensive Subprime Loans.

For more, see Mass. sues H&R Block over mortgages to minorities.

From the Massachusetts Attorney General's Office:

• Lawsuit - State of Massachusetts v. H&R Block, Inc., et al.,
• Press Release - Attorney General Martha Coakley Files Lawsuit Against National Mortgage Lender Option One and Parent H&R Block for Deceptive and Discriminatory Lending Practices.

Go here for other posts on alleged discriminatory subprime lending.