Fifth Third Bancorp
) mortgage unit has reached over $1.5 million settlement with the
U.S. Department of Justice to resolve charges of discrimination
against some loan applicants on the basis of disability and receipt
of public assistance. The settlement was filed with the U.S.
District Court in Macon and is subject to court approval.
It was alleged that Fifth Third's mortgage unit insisted that the
mortgage loan applicants should provide letters from their doctors
in order to document the income they obtained from Social Security
Disability Insurance. This practice of discrimination led to
violation of the Fair Housing Act ('FHA') and the Equal Credit
Opportunity Act ('ECOA').
According to the Justice department, Fifth Third fully cooperated
with the department's inquiry into its lending practices. The
company's settlement amount will compensate the eligible mortgage
loan applicants. Further, the company will improve its policies,
undertake training of its underwriters and loan officers, and
ensure that loan applicants with disability are not asked for
letters from their doctors.
Fifth Third currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the finance sector include
AllianceBernstein Holding L.P. (
), Piper Jaffray Companies (
) and Cohen & Steers Inc. (
). All these sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
FIFTH THIRD BK (FITB): Free Stock Analysis
ALLIANCEBERNSTN (AB): Free Stock Analysis
COHEN&STRS INC (CNS): Free Stock Analysis
PIPER JAFFRAY (PJC): Free Stock Analysis Report
To read this article on Zacks.com click here.