Countrywide Mortgage to Reform Lending Program

New York Attorney General Eliot Spitzer Tuesday said that Countrywide Financial, one of the largest U.S. mortgage lenders, agreed to new measures that would combat discriminatory pricing for minority borrowers.

This has been a problem in the Sunshine State as the cost of Florida home loans varies by race.

Under the agreement, Countrywide will compensate minority borrowers improperly steered toward higher-cost national and Florida mortgages, while beginning a $3 million consumer education program. A Spitzer spokeswoman said the actual amount of the compensation to be repaid won’t be known until a case by case review.

Countrywide agreed to fair lending training for loan officers and detailed reporting to the attorney general’s office to ensure compliance and to track Countrywide’s progress. The California-based lender also will pay the state $200,000 to cover investigation costs.

Spitzer’s office began investigating Countrywide after federal mortgage data from 2004 showed that black and Latino customers in New York were more likely than white customers to receive higher priced “subprime” or “Alt-A” loans.