Madigan Hails Settlement Over Countrywide Loans

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(Photo by Scott Olson/Getty Images)

(Photo by Scott Olson/Getty Images)

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CHICAGO (AP) — Illinois Attorney General Lisa Madigan is welcoming a $335 million settlement with Bank of America to resolve allegations of discriminatory loans.

Madigan’s office filed suit against Bank of America subsidiary Countrywide Financial Corp. in 2010. The settlement, announced Wednesday by the U.S. Department of Justice, stemmed from that lawsuit.

Madigan says Countrywide consistently sold African-American and Hispanic borrowers riskier loans at a higher cost than it sold to white borrowers with similar credit.

Madigan says the settlement upholds American principles of justice and fairness. She says people’s access to credit, and the terms of their credit, should be determined on an equal basis, not on the basis of the color of their skin.

The settlement is subject to court approval. Countrywide was purchased by Bank of America in 2008.

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 This material may not be published, broadcast, rewritten or redistributed.)

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