JP Morgan Chase has agreed to settle mortgage discrimination claims, brought by the Department of Justice for $55 million. The federal lawsuit alleged that Chase worked with mortgage brokers that discriminated against minority borrowers by charging them, on average, $1,000 more than white borrowers. While Chase admits no wrongdoing as part of the settlement, the lawsuit alleged that approximately 53,000 black and Hispanic borrowers were charged more than white borrowers by the allegedly independent brokers that Chase was working with between 2006 and 2009.
Currently, the settlement is still awaiting judicial approval. The settlement amount may seem like a significant sum of money to most, however, when the $55 million is put up against the bank's $250 billion in equity, and $2.4 trillion in assets, the settlement seems a bit paltry.