Countrywide Financial to Pay $335 Million Lending Discrimination Settlement

December 21, 2011 Updated Dec 21, 2011 at 6:39 PM EDT

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Countrywide Financial to Pay $335 Million Lending Discrimination Settlement

December 21, 2011 Updated Dec 21, 2011 at 6:39 PM EDT

According to a news release issued Wednesday, the U.S. Department of Justice has reached a $335 million settlement with Countrywide Financial Corporation to settle allegations of lending discrimination against more than 200,000 qualified African-American and Hispanic borrowers in their mortgage lending from 2004-08.

According to the DOJ news release, the settlement -- which is subject to court approval -- would provide $335 million in compensation.

“The department’s action against Countrywide makes clear that we will not hesitate to hold financial institutions accountable, including one of the nation’s largest, for lending discrimination,” Attorney General Eric Holder said in the news release. “These institutions should make judgments based on applicants’ creditworthiness, not on the color of their skin. With today’s settlement, the federal government will ensure that the more than 200,000 African-American and Hispanic borrowers who were discriminated against by Countrywide will be entitled to compensation.”

Read the Department of Justice news release HERE.