Case: United States v. Long Beach Mortgage Company

2:96-cv-06159 | U.S. District Court for the Central District of California

Filed Date: Sept. 5, 1996

Closed Date: 1999

Clearinghouse coding complete

Case Summary

On September 5, 1996, the U.S. Department of Justice filed a lawsuit under 42 U.S.C. §§ 3601-3619 (Fair Housing Act) and 15 U.S.C. § 1691 (Equal Credit Opportunity Act) against the Long Beach Mortgage Company in the United States District Court for the Central District of California. The Department of Justice sought declaratory and injunctive relief and monetary damages on behalf of African-Americans, Latinos, women, and persons over 55 who had allegedly been victims of the defendant's discrimi…

On September 5, 1996, the U.S. Department of Justice filed a lawsuit under 42 U.S.C. §§ 3601-3619 (Fair Housing Act) and 15 U.S.C. § 1691 (Equal Credit Opportunity Act) against the Long Beach Mortgage Company in the United States District Court for the Central District of California. The Department of Justice sought declaratory and injunctive relief and monetary damages on behalf of African-Americans, Latinos, women, and persons over 55 who had allegedly been victims of the defendant's discriminatory policies. Specifically, the DOJ alleged that Long Beach, a sub-prime mortgage lender, had failed properly instructed its employees regarding their obligation to treat prospective customers without regard to race, national origin, gender or age in compliance with fair lending laws. The DOJ further alleged that the company used a number of discriminatory practices and tactics that resulted in a pattern of higher fees and costs for loan applicants of minority groups.

Contemporaneously with filing the complaint, the parties submitted a proposed Settlement Agreement to the Court for approval. The Agreement established objective guidelines for establishing the risk of future mortgage applicants, and set up a training program for Long Beach employees. The Agreement also created a monitoring program to help Long Beach ensure that no further pattern of discrimination would emerge in its practice, and established a record keeping and reporting program that included semi-annual reports to the DOJ. Long Beach further agreed to establish a fund of $3 million to reimburse its borrowers previously given unfair terms, and to donate $1 million to consumer education programs. The District Court (Judge Dickran Tevrizian) approved the Settlement Agreement on September 5, 1996.

The agreement ended in 1999 without any further litigation. The case is now closed.

Summary Authors

Nick Niles (7/12/2007)

People


Judge(s)

Tevrizian, Dickran M. Jr. (California)

Woehrle, Carla M. (California)

Attorneys(s) for Plaintiff

Cass, Jennifer (District of Columbia)

Dowell, Gavin C. (District of Columbia)

Hancock, Paul F. (District of Columbia)

Johnston, Pamela L. (California)

Manella, Nora Margaret (California)

Patrick, Deval L. (District of Columbia)

Reno, Janet (District of Columbia)

Ross, Alexander C. (District of Columbia)

Judge(s)

Tevrizian, Dickran M. Jr. (California)

Woehrle, Carla M. (California)

Attorneys(s) for Plaintiff

Cass, Jennifer (District of Columbia)

Dowell, Gavin C. (District of Columbia)

Hancock, Paul F. (District of Columbia)

Johnston, Pamela L. (California)

Manella, Nora Margaret (California)

Patrick, Deval L. (District of Columbia)

Reno, Janet (District of Columbia)

Ross, Alexander C. (District of Columbia)

Weidman, Leon W. (California)

Attorneys(s) for Defendant

Noto, Thomas J. (District of Columbia)

Platt, Laurence E. (District of Columbia)

Stevens, Ronald W. (District of Columbia)

Thornburgh, Dick (District of Columbia)

Documents in the Clearinghouse

Document

2:96-cv-06159

Docket [PACER]

United States v. Long Beach Mortgage

Sept. 5, 1996

Sept. 5, 1996

Docket
2

2:96-cv-06159

Settlement Agreement and Order Thereon

United States v. Long Beach Mortgage

Sept. 5, 1996

Sept. 5, 1996

Settlement Agreement

USDOJ Press Release: "Long Beach Lender to Pay $3 Million for Allegedly Charging Higher Rates to African Americans, Hispanics, Women, and the Elderly"

United States v. Long Beach Mortgage

No Court

Sept. 5, 1996

Sept. 5, 1996

Press Release
1

2:96-cv-06159

Complaint for Compensatory and Punitive Damages, Civil Money Penalties and Injunctive Relief

United States v. Long Beach Mortgage

Sept. 5, 1996

Sept. 5, 1996

Complaint

Resources

Docket

Last updated July 22, 2022, 3:14 a.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT (Summons(es) issued) (referred to Discovery Carla M. Woehrle ) (bg) (Entered: 09/06/1996)

Sept. 5, 1996

Sept. 5, 1996

2

Settlmnt agreement & ORDER by Judge Dickran Tevrizian. W/i 90 dys of dt of this agreemnt LBMC sh place $3,000,000. into Long Beach Mortgage Company sttlmnt agreemnt compensa fund. Fund sh be maintained in an interest bearing acct. Ea pty to this litigation sh bear its own costs & attys fees. terminating case . (ENT 9/5/96), MD JS-6, mld cpys & ntcs. (twdb) (Entered: 09/06/1996)

Sept. 5, 1996

Sept. 5, 1996

Case Details

State / Territory: California

Case Type(s):

Fair Housing/Lending/Insurance

Special Collection(s):

Multi-LexSum (in sample)

Key Dates

Filing Date: Sept. 5, 1996

Closing Date: 1999

Case Ongoing: No

Plaintiffs

Plaintiff Description:

The United States, on behalf of African American, Hispanic, female and/or elderly customers who took out loans from Long Beach between 01/1991 and 06/1994.

Attorney Organizations:

U.S. Dept. of Justice Civil Rights Division

Public Interest Lawyer: Yes

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

Long Beach Mortgage Company, Private Entity/Person

Case Details

Causes of Action:

Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.

Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691

Availably Documents:

Trial Court Docket

Complaint (any)

Injunctive (or Injunctive-like) Relief

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Damages

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Order Duration: 1996 - 1999

Issues

Discrimination-area:

Lending

Discrimination-basis:

Age discrimination

Sex discrimination

Race:

Black

National Origin/Ethnicity:

Hispanic