Case: United States v. Countrywide Financial Corporation

2:11-cv-10540 | U.S. District Court for the Central District of California

Filed Date: Dec. 21, 2011

Closed Date: Dec. 30, 2016

Clearinghouse coding complete

Case Summary

This case, brought by the United States in December 2011 against Countrywide Financial Corporation, resulted in the largest residential fair lending settlement in U.S. history. $335 million was paid to compensate more than 200,000 African-American and Hispanic borrowers who were allegedly charged higher fees and interest rates because of their race or national origin. The United States also claimed that Countrywide and its subsidiaries ("the Countrywide Defendants") steered thousands of African…

This case, brought by the United States in December 2011 against Countrywide Financial Corporation, resulted in the largest residential fair lending settlement in U.S. history. $335 million was paid to compensate more than 200,000 African-American and Hispanic borrowers who were allegedly charged higher fees and interest rates because of their race or national origin. The United States also claimed that Countrywide and its subsidiaries ("the Countrywide Defendants") steered thousands of African-American and Hispanic borrowers into subprime mortgages when non-Hispanic white borrowers with similar credit profiles received prime loans.

Prior to entry of the Consent Decree, the Countrywide defendants had stopped originating residential loans. In addition to the monetary relief, the consent decree contained remedial provisions to become effective in the event the Countywide defendants ever reentered this business. These included implementation of policies and practices to prevent and detect potential fair lending violations not only on the basis of race or national origin, but also on the basis of marital status. Regarding monetary relief, the court required that the defendants deposit $335 million to compensate allegedly aggrieved persons for monetary and other damages they may have suffered as a result of the defendants' alleged violations of the FHA and the ECOA. Each party bore its own costs and attorneys' fees.

The Consent Decree had a four-year term, beginning December 21, 2011.

On January 25, 2016, the Court (Philip S. Gutierrez) entered an amended Consent Decree which extended provisions of the settlement to December 30, 2016. The amended decree required the defendants to present a proposal to the court for the distribution of all money remaining in the Settlement Fund by October 14, 2016.

On April 5, 2016, the court granted am April 4 disbursement order, which granted, among sums to other organizations: (a) The National Urban League $1,000,000.00; (b) National Council of La Raza $1,500,000.00; (c) Habitat for Humanity $1,000,000.00; (d) d. Self−Help Ventures Fund $1,500,000.00; (e) Atlanta Neighborhood Development Partnership $1,000,000; (f) Opportunity Resource Fund $1,000,000.00; (g) Neighborhood Housing Services of Chicago $1,500,000.00; (h) NHS of Los Angeles County $2,000,000.00.

On October 27, 2016, the court approved the defendant's second disbursement plan.

The was no further docket activity after this order and the case is now closed.

Summary Authors

Gregory Pitt (7/16/2012)

Asma Husain (2/14/2016)

Raul Noguera-McElroy (4/19/2019)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/4147962/parties/united-states-v-countrywide-financial-corporation/


Judge(s)

Gutierrez, Philip S. (California)

Attorney for Plaintiff

Dougherty, Burtis M (California)

Mosteller, Daniel P (California)

O'Beirne, Patricia L (California)

Expert/Monitor/Master/Other

Albert, Lenore L (California)

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Documents in the Clearinghouse

Document

2:11-cv-10540

Docket

Oct. 27, 2016

Oct. 27, 2016

Docket
1

2:11-cv-10540

Complaint

United States of America v. Countrywide Financial Corporation

Dec. 21, 2011

Dec. 21, 2011

Complaint

2:11-cv-10540

Press Release

United States of America v. Countrywide Financial Corporation

No Court

Dec. 21, 2011

Dec. 21, 2011

Press Release
4

2:11-cv-10540

Consent Decree

United States of America v. Counrtywide Financial Corporation

Dec. 28, 2011

Dec. 28, 2011

Settlement Agreement

2011 U.S.Dist.LEXIS 150263

20

2:11-cv-10540

Amended Consent Order

Jan. 25, 2016

Jan. 25, 2016

Order/Opinion

Docket

See docket on RECAP: https://www.courtlistener.com/docket/4147962/united-states-v-countrywide-financial-corporation/

Last updated Dec. 18, 2024, 7:11 p.m.

Docket sheet not available via the Clearinghouse.

Case Details

State / Territory: California

Case Type(s):

Fair Housing/Lending/Insurance

Special Collection(s):

Multi-LexSum (in sample)

Key Dates

Filing Date: Dec. 21, 2011

Closing Date: Dec. 30, 2016

Case Ongoing: No

Plaintiffs

Plaintiff Description:

United States

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

Countrywide Financial Corporation, Private Entity/Person

Defendant Type(s):

Bank or credit provider

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

Available Documents:

Trial Court Docket

Complaint (any)

Monetary Relief

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

Amount Defendant Pays: 335 million

Order Duration: 2011 - 2017

Issues

General/Misc.:

Housing

Predatory lending

Discrimination Area:

Lending

Discrimination Basis:

National origin discrimination

Race discrimination

Affected National Origin/Ethnicity(s):

Hispanic

Affected Race(s):

Black