Another predatory lending lawsuit…
In what the plaintiffs’ attorneys are calling a “first of its kind” decision, a federal jury in Brooklyn ruled this week that Emigrant Savings Bank and Emigrant Mortgage Company engaged in predatory lending by “aggressively marketing toxic mortgages to Black and Latino homeowners with poor credit” in the run-up to the housing crisis.
According to Legal Services NYC, which represented several aggrieved homeowners in the case, a federal jury found that Emigrant Bank violated the Fair Housing Act, Equal Credit Opportunity Act, and New York City Human Rights Law.
The decision is the first jury verdict finding a bank liable for targeting grossly unfavorable and predatory financial products to African-American and Hispanic communities, a practice known as reverse redlining, Legal Services NYC said in a release.
The plaintiffs’ attorneys also said that this is the “first case where a jury had the opportunity to hold a bank accountable for predatory practices that contributed to the financial crisis in 2008.”
According to Legal Services NYC, the jury awarded six plaintiffs a combined $950,000 in damages.