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Two Victories for Homeowners

May 14, 2009

Massachusetts Attorney General Martha Coakley announced this week that she is settling a case with Goldman Sachs & Company, an investment bank which securitized many subprime loans.  As a result of Coakley’s investigation, Goldman will provide loan restructuring valued at $50 million to homeowners and an additional $10 million to the state of Massachusetts.  Coakley plans to continue investigating investment banks which securitized subprime loans.

And, according to the, “First Mariner Bank of Baltimore has agreed to pay up to $1 million to settle federal complaints that it discriminated against Hispanics, blacks and women seeking home mortgages by charging higher rates.”

There have been many, many shady and discriminatory practices in the mortgage market over the past years.  It’s nice to see some justice being served against the perpetrators, even if this is only scratching the surface.  Kudos to Martha Coakley and the FDIC for these settlements.

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