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,
- 100% Financing,
- 2/28 Loans with “Teaser Rates”,
- “Stated Income,” “No-Doc” or “Low-Doc” Loans,
- Substantial Prepayment Penalties,
- 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.