Buffett-owned Mortgage Company Settles Over Redlining Accusations

27 Jul 2022, noon ·

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Warren Buffett of Berkshire Hathaway at the Fortune Most Powerful Women Summit in Laguna Niguel, Calif. (Photo credit Fortune Live Media via Flickr Creative Commons)

NEW YORK (AP) — A Pennsylvania mortgage company owned by Berkshire Hathaway, run by Omaha billionaire businessman Warren Buffett, discriminated against potential Black and Latino homebuyers in Philadelphia, New Jersey and Delaware, the Department of Justice said Wednesday. Officials are calling it the second-largest redlining settlement in history. Trident Mortgage Co. deliberately avoided writing mortgages in minority-majority neighborhoods in West Philadelphia, Camden, New Jersey and in Wilmington, Delaware, the DOJ and the Consumer Financial Protection Bureau said in their settlement with Trident. 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.