Case: United States v. Delta Funding Corp.

1:00-cv-01872 | U.S. District Court for the Eastern District of New York

Filed Date: March 30, 2000

Closed Date: 2003

Clearinghouse coding complete

Case Summary

On March 30, 2000, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of New York against a bank, in coordination with the United States Department of Housing and Urban Development and the Federal Trade Commission, alleging that it engaged in discriminatory lending practices. The plaintiffs alleged that as a result of the defendant's discriminatory policies and practices, African-American female borrowers were charged higher mortgage bro…

On March 30, 2000, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of New York against a bank, in coordination with the United States Department of Housing and Urban Development and the Federal Trade Commission, alleging that it engaged in discriminatory lending practices.

The plaintiffs alleged that as a result of the defendant's discriminatory policies and practices, African-American female borrowers were charged higher mortgage broker fees than similarly situated white male borrowers. The plaintiffs also alleged that the defendant provided financial incentives to mortgage brokers to steer loan applicants to Delta and that the defendant approved loans without regard to the borrower's ability to repay.

The plaintiff filed a proposed consent order on April 10, 2000 that was signed by the court (Judge Sifton). Under the settlement agreement, the Defendant-bank is prohibited from lending engaging in any lending practices based on sex, race, or color. In addition, Delta has agreed to create a $7,250,000 remediation fund as well as an amelioration fund consisting of 525,000 unregistered shares of common stock to compensate borrowers impacted by the Defendant-bank's previous discriminatory measures.

This case was the first case for DOJ to litigate with combined allegations of fair lending and consumer protection.

Summary Authors

Megan Richardson (4/3/2014)

People


Judge(s)

Go, Marilyn D. (New York)

Sifton, Charles Proctor (New York)

Attorneys(s) for Plaintiff

Berrelez, Rolando (District of Columbia)

Chua, Michelle (District of Columbia)

Lee, Bill Lann (District of Columbia)

Lynch, Loretta (New York)

Magagna, Joan A. (District of Columbia)

Markison, Kenneth (District of Columbia)

O'Brian, Valerie R. (District of Columbia)

Race, Peter S. (District of Columbia)

Judge(s)

Go, Marilyn D. (New York)

Sifton, Charles Proctor (New York)

Attorneys(s) for Plaintiff

Berrelez, Rolando (District of Columbia)

Chua, Michelle (District of Columbia)

Lee, Bill Lann (District of Columbia)

Lynch, Loretta (New York)

Magagna, Joan A. (District of Columbia)

Markison, Kenneth (District of Columbia)

O'Brian, Valerie R. (District of Columbia)

Race, Peter S. (District of Columbia)

Reno, Janet (District of Columbia)

Ross, Alexander C. (District of Columbia)

Tepper, Marla (New York)

Valentine, Debra A. (District of Columbia)

Documents in the Clearinghouse

Document

Docket

United States v. Delta Funding Corpor

April 10, 2000 Docket

Delta Funding Corporation Settle US Charges on Fair Lending and Consumer Law

No Court

March 30, 2000 Press Release
1

Complaint

United States of America v. Delta Funding Corporation

March 30, 2000 Complaint
2

Settlement Agreement and Order

United States of America v. Delta Funding Corporation

April 5, 2000 Settlement Agreement

Docket

Last updated May 11, 2022, 8 p.m.

ECF Number Description Date Link
1

COMPLAINT filed and no summons(es) issued for Delta Funding Corpor, Delta Financial Corp (Chow, Alice) (Entered: 04/03/2000)

March 30, 2000
2

SETTLEMENT AGREEMENT AND ORDER dated 4/5/00. See document for complete details. ( Signed by Senior Judge Charles P. Sifton, on 4/5/00) (Guzzi, Roseann) (Entered: 04/10/2000)

April 10, 2000

Case closed. *Notified Magistrate Go. (Guzzi, Roseann) (Entered: 04/10/2000)

April 10, 2000

State / Territory: New York

Case Type(s):

Fair Housing/Lending/Insurance

Key Dates

Filing Date: March 30, 2000

Closing Date: 2003

Case Ongoing: No

Plaintiffs

Plaintiff Description:

United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement

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

Delta Funding Corporation, Delta 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

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: $12,000,000.

Order Duration: 2000 - 2003

Content of Injunction:

Develop anti-discrimination policy

Provide antidiscrimination training

Monitoring

Issues

General:

Predatory lending

Discrimination-area:

Lending

Discrimination-basis:

Gender identity

Race discrimination

Race:

Black

Affected Gender:

Female