Fifth Third Bancorp has agreed to pay about $1.5 million to settle allegations it discriminated against mortgage borrowers with physical disabilities.
The $133 billion-asset Fifth Third had been accused of engaging in a pattern of discrimination against physically disabled mortgage applicants by requiring them to submit a letter from a physician verifying that their income was derived from Social Security disability insurance.
Fifth Third's payment of $1,522,000 will be used to compensate mortgage loan applicants, the Justice Department said in a Thursday news release. The Cincinnati company also agreed to maintain revised policies and conduct employee training.
The settlement requires court approval. The investigation came as a result of a complaint filed with the U.S. Department of Housing and Urban Development, which referred the matter to the Justice Department.
Fifth Third "cooperated fully" with the investigation and agreed to reach a settlement without entering into contested litigation, the Justice Department said.
Cranbrook Mortgage, which was also a defendant in the case, agreed to revise its underwriting practices and pay $2,000 to compensate loan applicants.