The U.S. Department of Housing and Urban Development announced that federal officials have launched an inquiry into whether some mortgage lenders discriminated against qualified African Amenrican and Latino borrowers denying them government insured loans. The inquiry is in response to complaints filed Tuesday by the National Community Reinvestment Coalition accusing 22 banks nationwide of violating fair housing laws.
The coalition said the despite the borrowers' credit scores meeting the federal standard of 580 for insurance against default, the banks set higher thresholds and the borrowers were refused the loans.
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