Home News DOJ: Warren Buffett’s Mortgage Company Discriminated Against Black, Latino Homebuyers

DOJ: Warren Buffett’s Mortgage Company Discriminated Against Black, Latino Homebuyers

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New York (AP) — A Pennsylvania mortgage company owned by Billionaire businessman Warren Buffett’s Berkshire Hathaway has discriminated against potential black and Latin homebuyers in Philadelphia, New Jersey and Delaware, the Ministry of Justice said Wednesday. Said to. A solution in history.

Trident Mortgage Co., a division of Berkshire’s Home Services of America, deliberately avoided writing mortgages in West Philadelphia’s minority-majority areas such as Malcolm X Park. Camden, NJ; Wilmington, Delaware. The DOJ and the Consumer Finance Department said in a settlement with Trident. As part of the agreement with the DOJ and CFPB, Trident will need to secure $ 20 million to lend in underserved areas.

Kristen Clarke, Assistant Attorney General of the Department of Justice’s Citizenship Department, said: Prepared statement.

DOJ said that Trident employees who stopped making mortgages in 2020 between 2015 and 2019 called certain areas “ghettos” and were racist about lending to black homebuyers. Claimed to have made a good comment. One of Trident’s managers was filmed posing in front of the South Army flag. The marketing materials used by Trident were white only, and almost all of the company’s staff were white.

Josh Shapiro, The Pennsylvania Attorney General, who is running for governor, called Trident’s actions “systematic racism, pure and simple.”

Philadelphia has a long history of racism against black homebuyers and remains unresolved today. The Philadelphia City Council released a report on Wednesday 95% of all Philadelphia home appraisers are white, and there remains a racial gap in how black homeowners and white homeowners are valued. understood.

Trident also agreed to hire a mortgage officer in the affected area and to pay a $ 4 million fine. The Trident is no longer in operation, so another company will be contracted to provide a $ 20 million loan subsidy, DOJ said.

HomeServices of America did not immediately respond to requests for comment. Buffett did not immediately respond to the request for comment, but has historically postponed comments to Berkshire’s subsidiary.

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