Deutsche Bank's former subsidiary MortgageIT has agreed to pay $12.1 million to settle claims that it discriminated against African-American and Hispanic consumers seeking mortgage loans, the U.S. Department of Housing and Urban Development said Tuesday.

HUD alleged that MortgageIT charged African-American and Hispanic borrowers higher interest rates and fees and denied a disproportionate portion of mortgage applications from minority borrowers in violation of the Fair Housing Act.

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