More than 3,100 checks totaling $1.5 million are in the mail to borrowers allegedly harmed by Golden Empire Mortgage, Inc. and Howard D. Kootstra.
The refund checks stem from a lawsuit the Federal Trade Commission (FTC) filed against Golden Empire and Kootstra, alleging that they illegally charged Hispanic consumers higher prices for mortgage loans than non-Hispanic white consumers – price disparities that could not be explained by the applicants’ credit characteristics or underwriting risk.
A settlement order imposed a $5.5 million judgment that was suspended when the defendants paid $1.5 million for consumer redress.
The settlement order bars the defendants from discriminating on the basis of national origin in credit transactions and requires Golden Empire to establish and maintain a policy that restricts loan originators’ pricing discretion, a fair lending monitoring program, a program to ensure the accuracy and completeness of their data, and employee training programs.
Consumers who receive the checks should cash them on or before June 21, 2011. The FTC noted that it never requires consumers to pay money or provide information before redress checks may be cashed, so consumers should not fall for scam artists who may contact them and request such payments or information.
Golden Empire customers with questions should call the redress administrator, Gilardi & Co. LLC, at 888-292-6875 or visit the FTC’s refund website.
