The New York State Banking Department has put the finishing touches on a $12 million agreement with Delta Funding Corp. to settle charges of predatory lending.

The department had alleged that Delta, of Woodbury, N.Y., made unfair high-cost mortgage loans that targeted minorities in Brooklyn and Queens. As part of the agreement, the state attorney general and the Department of Justice will end their investigations of the subprime lender. The bulk of the $12 million settlement is $7.25 million in reduced loan payments. Another $4.75 million in Delta stock will be put in a trust fund that will provide restitution to affected customers and finance consumer education.

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