Mortgage company owned by Warren Buffet discriminated against Black homebuyers, DOJ says

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The Justice Department alleges that employees of the company made racist comments about making loans to Black homebuyers, calling some neighborhoods 'ghettos.'

A Pennsylvania mortgage company owned by billionaire businessman Warren Buffett's Berkshire Hathaway discriminated against potential Black and Latino homebuyers in Philadelphia, New Jersey and Delaware, the Department of Justice said Wednesday, in what they are calling the second-largest redlining settlement in history.

As part of the agreement with the DOJ and the CFPB, Trident will have to set aside $20 million to make loans in underserved neighborhoods."Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth, and devalued properties in their neighborhoods," said Kristen Clarke, an assistant Attorney General of the Justice Department’s Civil Rights Division, in a prepared statement.

One manager of Trident was photographed posing in front of the Confederate Flag. The marketing materials used by Trident involved exclusively white individuals, and nearly all of the company's staff were white.Josh Shapiro, Pennsylvania's attorney general who is running for governor, called the behavior by Trident "systematic racism, pure and simple."

 

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