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Race Discrimination and Mortgage Fraud
The crisis in the subprime mortgage markets has brought to light many allegations of predatory practices by mortgage lenders and other participants in the housing industry. In Barkley v. Olympia Mortgage Co., NYLJ 8/28/07, p. 31, col. 3, Judge Raymond Dearie of the Eastern District approved a strategy that might permit some victims of the alleged fraud to obtain a federal forum, with the possibility of treble damages and attorneys fees: allege (and prove) that the predatory practices constituted a form of racial discrimination.
The Allegations
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