Case: United States v. AIG Federal Savings Bank

1:10-cv-00178 | U.S. District Court for the District of Delaware

Filed Date: March 4, 2010

Clearinghouse coding complete

Case Summary

On March 4, 2010, the United States of America filed this lawsuit under the Fair Housing and Equal Credit Opportunity Acts against AIG Federal Savings Bank in the United States District Court, District of Delaware. The plaintiff, represented by attorneys from the U.S. Department of Justice and the U.S. Attorney's office asked the court for declaratory, injunctive, and monetary relief, claiming that AlG had engaged in a pattern or practice of discrimination on the basis of race. Specifically, th…

On March 4, 2010, the United States of America filed this lawsuit under the Fair Housing and Equal Credit Opportunity Acts against AIG Federal Savings Bank in the United States District Court, District of Delaware. The plaintiff, represented by attorneys from the U.S. Department of Justice and the U.S. Attorney's office asked the court for declaratory, injunctive, and monetary relief, claiming that AlG had engaged in a pattern or practice of discrimination on the basis of race. Specifically, the U.S. claimed that from July 2003 to May 2006, black borrowers nationwide were charged broker fees 20 basis points higher, on average, than the broker fees charged to white borrowers.

On March 19, 2010, the parties entered into a consent decree in which the bank agreed to: 1) refrain from engaging in any act or practice in wholesale home mortgage lending that discriminates on the basis of race or color; 2) maintain during the period of the order annual fair lending training; 3) develop and implement specific, nonracial standards for the assessment of direct broker fees on residential real estate-related loans; 4) post and prominently display in each location where loan applications are received by the lender a notice of nondiscrimination; 5) require brokers to make certain disclosures to applicants; 6) participate in a monitoring program to ensure compliance with the provisions of the consent decree; 7) provide a minimum of $1 million to certain organizations to provide credit counseling, financial literacy; and other related educational programs to African-American borrowers; 8) provide employees with equal credit opportunity training; and 9) pay $6.1 million in damages to those affected by AIG's discriminatory lending practices.

On July 7, 2011, the Court (Judge Leonard P. Stark) entered an order for distribution of the funds remaining in the settlement fund ($1,268,372.92) among the National Urban League, Operation HOPE and the American Financial Services Association Education Foundation.

Summary Authors

Gregory Pitt (7/30/2012)

Asma Husain (2/14/2016)

People

For PACER's information on parties and their attrorneys, see: https://www.courtlistener.com/docket/4219150/parties/united-states-v-aig-federal-savings-bank/


Judge(s)

Stark, Leonard Philip (Delaware)

Attorneys(s) for Plaintiff

Dull, Robin L. (District of Columbia)

Griffin, Howard R. (District of Columbia)

Hanson, Shannon T. (Delaware)

Murphy, Donna M. (District of Columbia)

Weiss, David C. (Delaware)

Attorneys(s) for Defendant

Hefferon, Thomas M. (District of Columbia)

Mierzewski, Michael B. (District of Columbia)

Judge(s)

Stark, Leonard Philip (Delaware)

Attorneys(s) for Plaintiff

Dull, Robin L. (District of Columbia)

Griffin, Howard R. (District of Columbia)

Hanson, Shannon T. (Delaware)

Murphy, Donna M. (District of Columbia)

Weiss, David C. (Delaware)

Attorneys(s) for Defendant

Hefferon, Thomas M. (District of Columbia)

Mierzewski, Michael B. (District of Columbia)

Documents in the Clearinghouse

Document

1:10-cv-00178

Docket

July 7, 2011

July 7, 2011

Docket
4

1:10-cv-00178

Consent Decree

March 19, 2010

March 19, 2010

Settlement Agreement
97

1:10-cv-00178

Complaint

United States v. AIG Federal Savings Banks

March 19, 2010

March 19, 2010

Complaint
6

1:10-cv-00178

Disbursement Order

July 7, 2011

July 7, 2011

Order/Opinion

Resources

Docket

See docket on RECAP: https://www.courtlistener.com/docket/4219150/united-states-v-aig-federal-savings-bank/

Last updated July 24, 2022, 3:10 a.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT filed against AIG Federal Savings Bank, Wilmington Finance Inc. - (Filing fee $ 350.) - filed by USA. (Attachments: # 1 Civil Cover Sheet)(els) (Entered: 03/05/2010)

1 Civil Cover Sheet

View on PACER

March 4, 2010

March 4, 2010

RECAP
2

Notice, Consent and Referral forms re: U.S. Magistrate Judge jurisdiction (els) (Entered: 03/05/2010)

March 4, 2010

March 4, 2010

PACER
3

UNOPPOSED MOTION Consent Order - filed by USA. (Attachments: # 1 Text of Proposed Order)(els) (Entered: 03/05/2010)

March 4, 2010

March 4, 2010

PACER
4

ORDER Granting 3 Unopposed MOTION for Entry of Consent Order filed by USA. Signed by Judge Joseph J. Farnan, Jr. on 3/19/2010. (nms) (Entered: 03/22/2010)

March 19, 2010

March 19, 2010

PACER
5

JOINT Motion for Entry of Proposed Order - by USA. (Attachments: # 1 Proposed Order)(Griffin, Howard) Modified on 7/6/2011 (nms). (Main Document 5 replaced on 7/6/2011) (rwc). (Entered: 07/05/2011)

July 5, 2011

July 5, 2011

PACER
6

DISBURSEMENT ORDER -- granting 5 Joint MOTION for Entry of Disbursement Order. Signed by Judge Leonard P. Stark on 7/7/11. (ntl) (Entered: 07/08/2011)

July 7, 2011

July 7, 2011

PACER

Case Details

State / Territory: Delaware

Case Type(s):

Fair Housing/Lending/Insurance

Special Collection(s):

Multi-LexSum (in sample)

Key Dates

Filing Date: March 4, 2010

Case Ongoing: No reason to think so

Plaintiffs

Plaintiff Description:

The United States of America on behalf of African-American borrowers affected by AIG's discriminatory lending practices

Plaintiff Type(s):

U.S. Dept of Justice plaintiff

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

AIG Federal Savings Bank, 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

Availably 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: $7.1 million

Order Duration: 2010 - 2013

Content of Injunction:

Monitoring

Discrimination Prohibition

Develop anti-discrimination policy

Reporting

Issues

General:

Predatory lending

Discrimination-area:

Lending

Discrimination-basis:

Race discrimination

Race:

Black