Industry News

Race-targeted predatory loans deemed ‘discrimination’

Pennsylvania court finds mortgage brokers guilty

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A Pennsylvania appeals court ruled Friday that predatory mortgage loans targeting African-American home buyers can constitute housing discrimination under the Pennsylvania Human Relations Act, Associated Press reported. Last Oct. 26, the state Human Relations Commission ruled against brokers McGlawn & McGlawn Inc. and company co-founder Reginald McGlawn of Elkins Park, Pa., AP reported. At that time, the commission assessed a total of nearly $910,000 in damages and fines, including $700,000 in actual damages, a $25,000 civil penalty and $185,000 for embarrassment and humiliation, press reports said. The commission at that time directed McGlawn & McGlawn to make repayments to the 10 customers, making up the difference between the rates they were charged and the prevailing market rates at the time, AP reported. The three-judge Commonwealth Court panel Friday said the Human Relations Commission had the authority to assess the damages, but said the $700,000, based on a 5 percent ...