Case: United States v. Bank of America

3:12-cv-00605 | U.S. District Court for the Western District of North Carolina

Filed Date: Sept. 13, 2012

Closed Date: 2016

Clearinghouse coding complete

Case Summary

On September 13, 2012, the United States filed a lawsuit in the U.S. District Court for the Western District of North Carolina against Bank of America, alleging violations of the Fair Housing Act and the Equal Credit Opportunity Act. Specifically, the federal government alleged that Bank of America discriminated against disabled mortgage applicants by requiring all disabled applicants to submit a letter from their doctors indicating the amount of the disability income they received. In some cas…

On September 13, 2012, the United States filed a lawsuit in the U.S. District Court for the Western District of North Carolina against Bank of America, alleging violations of the Fair Housing Act and the Equal Credit Opportunity Act. Specifically, the federal government alleged that Bank of America discriminated against disabled mortgage applicants by requiring all disabled applicants to submit a letter from their doctors indicating the amount of the disability income they received. In some cases, the U.S. claimed that Bank of America required disabled loan applicants to provide information about the nature and severity of their disability as a condition of receiving a mortgage. The federal government further alleged that Bank of America discriminated against applicants receiving public assistance in violation of the Equal Credit Opportunities Act. The federal government asked the court for an injunction as well as monetary damages.

A consent order was submitted on October 10, 2012 and later amended on December 6. The Court (Chief Judge Robert J. Conrad, Jr.) approved the order, which prohibited Bank of America from requiring applicants to submit a letter from a doctor and required Bank of America to institute a monitoring program, train staff on the new policies, maintain a complaint resolution program, and to compensate affected applicants. According to the press release from the Department of Justice, Bank of America paid a minimum of $370 million in the settlement to about 200,000 borrowers. The order was to remain in effect for 42 months following the approval date.

On June 5, 2013, the case was reassigned to Magistrate Judge David S. Cayer. The consent order terminated without any further litigation, and the case is now closed.

Summary Authors

Megan Dolan (6/8/2014)

Sarah Du (11/10/2018)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/4305348/parties/united-states-v-bank-of-america/


Judge(s)

Conrad, Robert James Jr. (North Carolina)

Keesler, David C. (North Carolina)

Attorneys(s) for Plaintiff

Carlson, Lucy G. (District of Columbia)

Holder, Eric H. Jr. (District of Columbia)

Perez, Thomas E. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Seward, Jon M. (District of Columbia)

Taylor, Paul B. (North Carolina)

Tompkins, Anne M. (North Carolina)

Attorneys(s) for Defendant

Culver, John H. (North Carolina)

Judge(s)

Conrad, Robert James Jr. (North Carolina)

Keesler, David C. (North Carolina)

Attorneys(s) for Plaintiff

Carlson, Lucy G. (District of Columbia)

Holder, Eric H. Jr. (District of Columbia)

Perez, Thomas E. (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Seward, Jon M. (District of Columbia)

Taylor, Paul B. (North Carolina)

Tompkins, Anne M. (North Carolina)

Attorneys(s) for Defendant

Culver, John H. (North Carolina)

Schulman, Phillip L. (District of Columbia)

Documents in the Clearinghouse

Document

Docket (PACER)

United States of America v. Bank of America

June 5, 2013 Docket
1

Complaint

Sept. 13, 2012 Complaint

Justice Department Reaches Settlement with Bank of America to Resolve Allegations of Discrimination Against Recipients of Disability Income

No Court

Sept. 13, 2012 Press Release
7

Consent Order

United States of America v. Bank of America

Oct. 10, 2012 Order/Opinion

Docket

See docket on RECAP: https://www.courtlistener.com/docket/4305348/united-states-v-bank-of-america/

Last updated May 13, 2022

ECF Number Description Date Link
1

COMPLAINT against All Defendants, filed by United States of America.(Taylor, Paul) (Entered: 09/13/2012)

Sept. 13, 2012 RECAP
2

NOTICE by United States of America of Filing of Proposed Consent Order (Attachments: # 1 Proposed Order Consent Order)(Taylor, Paul) (Entered: 09/13/2012)

1 Proposed Order Consent Order

View on PACER

Sept. 13, 2012 PACER
3

MOTION for Leave to Appear Pro Hac Vice as to Phillip L. Schulman Filing fee $ 276, receipt number 0419-1797717. by Bank of America. (Culver, John). Motions referred to David Keesler. (Entered: 09/25/2012)

Sept. 25, 2012 PACER
4

ORDER granting 3 Motion for Leave to Appear Pro Hac Vice added Phillip L. Schulman for Bank of America. Signed by Magistrate Judge David Keesler on 9/25/2012. (eef) (Entered: 09/25/2012)

Sept. 25, 2012 RECAP
5

Joint MOTION for Entry of Judgment /Proposed Consent Order by United States of America.Responses due by 10/15/2012 (Taylor, Paul) (Entered: 09/28/2012)

Sept. 28, 2012 PACER
6

ORDER granting 5 Motion for Entry of Judgment. Signed by Chief Judge Robert J. Conrad, Jr on 10/10/12. (mga) (Entered: 10/10/2012)

Oct. 10, 2012 RECAP
7

CONSENT ORDER re: discrimination claims. Signed by Chief Judge Robert J. Conrad, Jr on 10/10/12. (mga) Modified docket text on 10/11/2012 (bsw). (Entered: 10/10/2012)

Oct. 10, 2012 RECAP
8

Joint MOTION to Amend/Correct 7 Order by United States of America.Responses due by 12/17/2012 (Taylor, Paul). Motions referred to David Keesler. (Entered: 11/29/2012)

Nov. 29, 2012 PACER
9

Amended consent ORDER re 7 Consent Order. Signed by Chief Judge Robert J. Conrad, Jr on 12/5/2012. (blf) (Entered: 12/06/2012)

Dec. 6, 2012 RECAP

State / Territory: North Carolina

Case Type(s):

Fair Housing/Lending/Insurance

Key Dates

Filing Date: Sept. 13, 2012

Closing Date: 2016

Case Ongoing: No

Plaintiffs

Plaintiff Description:

The United States on behalf of disabled individuals applying for home mortgage loans while receiving Social Security Disability Insurance.

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

Bank of America, 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: $370,000,000

Order Duration: 2012 - 2016

Content of Injunction:

Discrimination Prohibition

Provide antidiscrimination training

Implement complaint/dispute resolution process

Recordkeeping

Monitoring

Issues

General:

Housing

Other Banking

Pattern or Practice

Discrimination-area:

Lending

Discrimination-basis:

Disability (inc. reasonable accommodations)

Disability:

disability, unspecified

Benefit Source:

SSDI