Mortgage company to make home loans to poor blacks

Jet, Jan 17, 1994

A mortgage lending company accused of preying on poor Black people has agreed to set aside $70 million for low-cost home loans and pay $164 to each of more than 18,000 borrowers.

The $115 million settlement with Fleet Finance Inc., in Atlanta ends a year-long state investigation and may resolve several consumer lawsuits against the company.

Under the settlement, more than 18,000 people in Georgia who borrowed at high interest rates since 1991 will get refunds of $164. About half will also be charged lower interest rates and fees.

The company also agreed to commit $70 million to a state fund that provides low-cost home loans to the poor.