As the financial crisis was building in 2008, Bank of America bought Countrywide, which specialized in so-called subprime mortgages, focusing on loans to those with lower credit ratings and charging them higher interest rates.

The settlement covers conduct between 2004 and 2008 before the acquisition by Bank of America, and involves a range of alleged wrongdoing including charging African-Americans and Hispanics higher interest rates and fees than non-minorities.

Minorities also were steered to more expensive subprime loans even though they were qualified for traditional mortgage rates. U.S. Justice Department officials said it was the largest residential discrimination settlement in U.S. history.

“The victims had no idea they were being victimized. They were thrilled to have gotten a loan and realize the American dream,” Thomas Perez, head of the Justice Department’s civil rights division, told reporters. “This is discrimination with a smile.”