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Berkshire Hathaway subsidiary settles U.S. mortgage redlining charges

Berkshire Hathaway subsidiary settles U.S. mortgage redlining charges

Reuters · 07/27/2022 11:30
Berkshire Hathaway subsidiary settles U.S. mortgage redlining charges

- A mortgage subsidiary of Warren Buffett's Berkshire Hathaway Inc BRK A has agreed to pay $22.4 million to settle U.S. government charges that it intentionally discriminated against minority families in the Philadelphia area.

In a joint statement on Wednesday, the Department of Justice and the Consumer Financial Protection Bureau said Trident Mortgage Co actively discouraged people in majority-minority from applying for mortgages or mortgage refinancings, through a process known as redlining.

The agencies said Trident developed marketing campaigns that discouraged minority loan applications and employed loan officers almost exclusively in majority-white , while employees often distributed racist emails and used racist tropes.

Wednesday's settlement is the first by the U.S. government involving illegal discrimination by a mortgage lender.

Trident's lawyers and its parent HomeServices of America, itself a Berkshire unit, did immediately respond to requests for comment.

The $22.4 million payment includes a $4 million civil fine, and $18.4 million to subsidize loans for minority applicants. Trident will also spend $2 million on ads to generate applications and serve credit in redlined areas.

Trident stopped accepting mortgage loan applications in 2021.



(Reporting by Jonathan Stempel in New York; Editing by Josie Kao)

((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.))