Boston Globe (06/04/08); Blanton, Kimberly
Option One Mortgage Corp. has been hit with litigation that accuses the company of targeting minorities with subprime mortgages and charging them higher initial fees than white customers. Filed by the Massachusetts attorney general's office in Suffolk Superior Court in Boston, the lawsuit cites four examples--including a case in which Option One charged a black borrower with a 523 credit rating $10,635 in fees for a $167,000 refinance loan while charging a white borrower with a 520 credit score just $2,275 in fees to borrow $200,000. Attorney General Martha Coakley is seeking a preliminary injunction to prevent foreclosures on homes purchased with Option One mortgages, in addition to civil penalties and restitution for borrowers.
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