Filed Date: April 2, 2012
Closed Date: 2017
Clearinghouse coding complete
On April 2, 2012, the United States filed a lawsuit under the Fair Housing Act and the Equal Credit Opportunity Act against New York-based correspondence mortgage lender GFI Mortgage Bankers, Inc., in the U.S. District Court for the Southern District of New York. The United States, represented by the Department of Justice Civil Rights Division, asked the court for injunctive and monetary relief. It alleged that between 2005 and 2009, GFI's loan officers engaged in a pattern and practice of charging African-American and Hispanic borrowers in New Jersey and New York higher interest rates and higher fees for residential mortgage loans than they charged similarly situated white borrowers. It further alleged that because of these disparities, African Americans and Hispanics paid or would need to pay between $4,000 and $5,000 more than similarly situated white borrowers over the first four years of their loans' terms, and more than $20,000 over the loans' full terms. The Department of Justice received this case as a referral from the Department of Housing and Urban Development.
GFI moved to dismiss the case, arguing that conduct that has a disparate impact (but no discriminatory intent) is not actionable under the Fair Housing Act or the Equal Credit Opportunity Act. On August 27, 2012, after Judge Katherine Forrest expressed skepticism of the defendants' argument in a scheduling order, the parties entered into a Consent Order. GFI admitted that statistical analyses of data from 2005–2009 showed its loan officers charged African-American and Latino borrowers higher discretionary fees than similarly situated white borrowers. It also admitted that it provided financial incentives for its loan officers to use discretion and charge borrowers fees unrelated to their credit characteristics.
The consent order required GFI to pay $3.5 million to damaged African-American and Hispanic borrowers, and to pay a $55,000 civil penalty to the United States. GFI was required to implement specific policies to prevent pricing discrimination and limit loan officers' discretion in the future, hire senior and managerial staff to ensure compliance with these policies, and develop a fair lending monitoring program that would allow it to identify and correct for lending disparities. The order required GFI to submit these policies for approval to the Department of Justice by the end of October 2012. After the United States approved the new policies, GFI was required hire an independent third-party to provide fair lending training to all of its employees engaged in the loan origination business. The consent decree was scheduled to last for four and a half years. After minor modifications to the consent order, the decree's enforcement period expired and the case is now closed.
Summary Authors
Benjamin Clark (10/18/2012)
Brian Remlinger (2/26/2019)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/4350423/parties/united-states-v-gfi-mortgage-bankers-inc/
Abrams, Robin E. (New York)
Adams, Andrew Caldwell (New York)
Amaditz, Kenneth Carl (New York)
America, United States (New York)
Anderson, Gary L. (New York)
Adams, Andrew Caldwell (New York)
Amaditz, Kenneth Carl (New York)
America, United States (New York)
Applegate, Daniel Arthur (New York)
Apps, Antonia Marie (New York)
Arreola, Anna Elizabeth (New York)
Attorney, Noticing 2255 (New York)
Attorney, United States (New York)
Bain-Creed, Benjamin (New York)
Benavides, Rene Carlo (New York)
Blain, Jennifer Ellen (New York)
Blaskopf, Lawrence Paul (New York)
Booth, Patricia Hubert (New York)
Bretz, Emily Elizabeth (New York)
Brown, Richard O.I. (New York)
Brown, Thomas Mackinnon (New York)
Bueno, Edgar Dennis (New York)
Callahan, Kristy Karen (New York)
Cardona, George Sargent (New York)
Cassella, Stefan Dante (New York)
Castillo, Daniel M. (New York)
Cha-Kim, Stephen Seungkun (New York)
Chan, Andrew Ken-Wei (New York)
Clarkson, John Thomas (New York)
Clayton, Lindsay Laurie (New York)
Clopper, John Dalton (New York)
Coppolino, Anthony Joseph (New York)
Corwin, Neil Matthew (New York)
Cowart, Kerala Thie (New York)
Cowley, Jason Harris (New York)
Curteman, Thomas William (New York)
DePippo, Henry John (New York)
Diedrichs, Clayton R. (New York)
DiPietro, Michael A (New York)
Division, Appellate (New York)
Donnellan, Michael Thomas (New York)
Duane, J. Mackenzie (New York)
Ehrlich, Jeffrey Paul (New York)
Erickson-Pogorzelski, Anthony (New York)
Feinzig, Margery Beth (New York)
Feldman, Brian Marc (New York)
Ferguson, Edmund M. (New York)
Fernandez, Eloisa Delgado (New York)
Fornos, Carolina A. (New York)
Freel, Jennifer Sheffield (New York)
Geddes, Catherine Elaine (New York)
Giorno, Anthony Paul (New York)
Girvin, Ralph Elwood (New York)
Grubman, Scott Robert (New York)
Guerrero, Marco Kelly (New York)
Haas, Alexander Kenneth (New York)
Hambrick, Jonathan Holland (New York)
Harker, Laura Margaret (New York)
Harrell-James, Veronica Vanessa (New York)
Harwood, Christopher Blake (New York)
Hernandez, Jason Peter (New York)
Herskowitz, Michael Vale (New York)
Hinrichs, Fred Turner (New York)
Holder, Charmaine Michele (New York)
Hottle, Douglas Morgan (New York)
Hudson, Jean Barrett (New York)
Ingoglia, Eugene Edward (New York)
Jonas, Bonnie Brooks (New York)
Jones, David Stuart (New York)
Kay, Richard Charles (New York)
Kennebrew, Delora L. (New York)
Kenney, Patricia Jean (New York)
Kobre, Elisha Jonathan (New York)
Kovacev, Robert John (New York)
Krause, Andrew Edward (New York)
Krieger, Paul Matthew (New York)
Lacosta, Anthony W. (New York)
Leary, Peter Decklin (New York)
Lee, Casey Kyung-Se (New York)
Levin, Sharon Cohen (New York)
Lillywhite, Jacob Thomas (New York)
Lindsey, Marilynn Koonce (New York)
Lockard, Michael Dennis (New York)
LoCurto, John Joseph (New York)
London, Ellen Melissa (New York)
Lowry, Faith Johnson (New York)
MacWilliams, Philip Davis (New York)
Magdo, Christine Ingrid (New York)
Magnanini, Robert A. (New York)
McCarthy, Andrew C. (New York)
McClellan, Jessica L. (New York)
McEachin, Onjil Tianna (New York)
McIntosh, Robert P. (New York)
Minnis, Tarra DeShields (New York)
Miranda, Annika Marie (New York)
Monteleoni, Paul Michael (New York)
Mott, Joseph William (New York)
Mountcastle, Rick A. (New York)
Mundell, Melissa Stebbins (New York)
Naftalis, Joshua Arditi (New York)
Normand, Sarah Sheive (New York)
O'Connell, Sean Bryan (New York)
Okula, Stanley John (New York)
Olivera, Jose Apolinar (New York)
Padmanabhan, Kartic (New York)
Paniszczyn, John F. (New York)
Parnham, Thomas Arthur (New York)
Parr, Mary Elizabeth (New York)
Patrick, Bradford Collins (New York)
Paul, Sarah Elizabeth (New York)
Phillips, Cristine Irvin (New York)
Powell, Jeffrey Kenneth (New York)
Price, Daniel Nikon (New York)
Putignano, Peter J. (New York)
Ramseyer, Steven Randall (New York)
Reddy, Kirti Vaidya (New York)
Reinhart, Katherine M (New York)
Richter, Zachary Carl (New York)
Robinson, Richard E (New York)
Rodriguez, Joseph Cuauhtemoc (New York)
Rosado, David Richard (New York)
Rosen, Lawrence Nathan (New York)
Rubin-Smith, Elina A. (New York)
Said, Nadia Elizabeth (New York)
Santos, Amelia Rebecca (New York)
Sassoon, Danielle Renee (New York)
Schild, Clarissa Pinheiro (New York)
Schoenberger, Carina Hyatt (New York)
Schwabauer, Barbara A (New York)
Schwartz, Matthew Lane (New York)
Shaw, Deborah Brittain (New York)
Simmons, Alicia Marie (New York)
Smeltzer, Joshua David (New York)
Smith, Micah William (New York)
Smith, Curtis Cutler (New York)
Sobelman, Robert Benjamin (New York)
Spaccarotella, John C. (New York)
Sponseller, Richard W. (New York)
Statkus, Shannon Heath (New York)
Stier, Cynthia Lewis (New York)
Strawn, Susan Leslie (New York)
Strelka, Andrew Charles (New York)
Strickland, Arthur Patrick (New York)
Sun, Anthony Jan-Huan (New York)
Swauger, Melissa A. (New York)
Tarczynska, Dominika (New York)
Teleanu, Natasha Waglow (New York)
Thomas, Andrew Mark (New York)
Towt, Katharine Farrell (New York)
Tumlin-Bhattacharyya, Tracy Rupa (New York)
Underhill, R. Michael (New York)
Valadez, Mary Nelda (New York)
Vargas, Jeannette Anne (New York)
Velamoor, Niketh Varadaraj (New York)
Walker, Krystal Dawn (New York)
Wasserstrom, Leigh Aaron (New York)
Weidenbach, Mitchell L. (New York)
Weidman, Leon Warren (New York)
Weinkle, James Alan (New York)
Whitsett, Louis Clifford (New York)
Whittaker, Alexandra (New York)
Williamson, Christopher James (New York)
Wilson, Alexander Joshua (New York)
Yasuda, Marsha Michiko (New York)
See docket on RECAP: https://www.courtlistener.com/docket/4350423/united-states-v-gfi-mortgage-bankers-inc/
Last updated Feb. 5, 2025, 12:57 a.m.
State / Territory: New York
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: April 2, 2012
Closing Date: 2017
Case Ongoing: No
Plaintiffs
Plaintiff Description:
United States
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
GFI Mortgage Bankers, Inc., Private Entity/Person
Defendant Type(s):
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
Constitutional Clause(s):
Available Documents:
Injunctive (or Injunctive-like) Relief
Outcome
Prevailing Party: Plaintiff
Nature of Relief:
Injunction / Injunctive-like Settlement
Source of Relief:
Form of Settlement:
Court Approved Settlement or Consent Decree
Content of Injunction:
Develop anti-discrimination policy
Provide antidiscrimination training
Amount Defendant Pays: 3,555,000
Order Duration: 2012 - 2017
Issues
General/Misc.:
Discrimination Area:
Discrimination Basis:
National origin discrimination
Affected National Origin/Ethnicity(s):
Affected Race(s):