The U.S. Justice Department says Plaza Home Mortgage Inc. of San Diego has agreed to pay $3 million to borrowers in a settlement of allegations that it engaged in a pattern or practice of discrimination on the basis of race and national origin.
The department says in a statement Friday that the proposal would settle allegations that Plaza charged thousands of African-American and Hispanic borrowers higher fees than white borrowers on wholesale mortgage loans.
In the settlement, Plaza denies all the allegations and asserts that any differences in pricing were due to legitimate, non-discriminatory factors.
The settlement is subject to approval by a court.
Ed. Note: On Nov. 29, 2016, both parties filed a joint motion to dismiss the action without prejudice upon expiration of the consent order.