HCI and Consumer One to Pay Over $650,000 in Restitution

(NYAG) Attorney General Andrew M. Cuomo today announced results of a landmark investigation with the New York State Department of Banking into discriminatory practices in the mortgage brokerage industry. In the first law enforcement action of its kind in New York State, two mortgage brokerage companies – HCI Mortgage and Consumer One Mortgage – will collectively pay $665,000 in restitution to approximately 455 Black and Latino borrowers who were illegally charged higher fees than similarly-situated White borrowers. The companies collectively operate more than 20 branches throughout New York State. The Attorney General also filed a lawsuit in federal district court against another mortgage brokerage company – U.S. Capital Funding, LLC – that engaged in similar discriminatory practices.

“The blatant discrimination in this case is as illegal as it is inexcusable,” said Attorney General Cuomo. “These customers were charged significantly higher fees for no reason other than being a minority – something that is explicitly against the law in New York State. Today’s agreements will put in place the necessary controls to ensure mortgage brokers comply with the law and offer fair and legitimate rates to all New Yorkers.”