Case: Consumer Financial Protection Bureau and United States v. National City Bank

2:13-cv-01817 | U.S. District Court for the Western District of Pennsylvania

Filed Date: Dec. 23, 2013

Closed Date: Jan. 6, 2017

Clearinghouse coding complete

Case Summary

On December 23, 2013, the Consumer Financial Protection Bureau and the United States Department of Justice, on behalf of approximately 76,000 African-American and Hispanic residential mortgage borrowers, filed a lawsuit in the U.S. District Court for the Western District of Pennsylvania against National City Bank, alleging that it engaged in discriminatory lending practices. In their complaint, the plaintiffs alleged that as a result of the defendant's policies and practices, African-American a…

On December 23, 2013, the Consumer Financial Protection Bureau and the United States Department of Justice, on behalf of approximately 76,000 African-American and Hispanic residential mortgage borrowers, filed a lawsuit in the U.S. District Court for the Western District of Pennsylvania against National City Bank, alleging that it engaged in discriminatory lending practices. In their complaint, the plaintiffs alleged that as a result of the defendant's policies and practices, African-American and Hispanic borrowers unfairly paid higher prices for their home mortgage loans than non-Hispanic White borrowers. The complaint asked the court for injunctive relief, rescission or reformation of contracts, and monetary damages.

Specifically, the plaintiffs alleged that the defendant allowed its mortgage brokers to set wholesale loan prices unrelated to credit risk characteristics and loan terms; did not require mortgage brokers to justify or document the reasons for the amount of broker fees and prices set above the par rate; failed to monitor for disparities based on race or national original because of its policies and practices; and created a financial incentive for mortgage brokers to charge higher fees and interest rates.

The plaintiff filed a proposed consent order with the complaint that was entered by the Court (Judge Cathy Bissoon) on January 9, 2014. The Consent Order addressed National City Bank's practices between 2002 and 2008. Subsequently, PNC Bank acquired the defendant, and so the Consent Order is between PNC Bank and the plaintiffs. Per the order, the bank was to establish an interest-bearing settlement fund of $35 million "to compensate affected borrowers for monetary damages, equitable relief, and other damages that they may have suffered as a result of National City Bank's alleged violations of the ECOA and the FHA." The order also provided a process for determining who the settlement fund recipients should be and for disbursement. The order was to terminate three months after final disbursement.

On Jan. 6, 2017, the court approved disbursement of the last of the settlement fund. The case is now closed.

Summary Authors

Megan Richardson (2/24/2014)

Virginia Weeks (2/22/2018)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/4374299/parties/consumer-financial-protection-bureau-v-national-city-bank/


Judge(s)

Bissoon, Cathy (Pennsylvania)

Attorneys(s) for Plaintiff

Alexis, Anthony (District of Columbia)

Auchterlonie, Sarah (District of Columbia)

Dettelbach, Steven M (District of Columbia)

Ficklin, Patrice A. (District of Columbia)

Gelfond, Rebecca J.K. (District of Columbia)

Hickton, David J. (Pennsylvania)

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

Jung, Je Yon (District of Columbia)

Morris, Lucy (District of Columbia)

Judge(s)

Bissoon, Cathy (Pennsylvania)

Attorneys(s) for Plaintiff

Alexis, Anthony (District of Columbia)

Auchterlonie, Sarah (District of Columbia)

Dettelbach, Steven M (District of Columbia)

Ficklin, Patrice A. (District of Columbia)

Gelfond, Rebecca J.K. (District of Columbia)

Hickton, David J. (Pennsylvania)

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

Jung, Je Yon (District of Columbia)

Morris, Lucy (District of Columbia)

O'Beirne, Patricia (District of Columbia)

Posner, Michael (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Samuels, Jocelyn (District of Columbia)

Seward, Jon M. (District of Columbia)

Attorneys(s) for Defendant

Allen, Thomas A. (Pennsylvania)

Other Attorney(s)

Graden, Tyler S. (Pennsylvania)

Documents in the Clearinghouse

Document

Docket [PACER]

Consumer Financial Protection Bureau v. National City Bank

Jan. 6, 2017 Docket
3

Consent Order

Consumer Financial Protection Bureau v. National City Bank

Dec. 23, 2013 Order/Opinion
1

Complaint

Dec. 23, 2013 Complaint

Docket

See docket on RECAP: https://www.courtlistener.com/docket/4374299/consumer-financial-protection-bureau-v-national-city-bank/

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

ECF Number Description Date Link
1

COMPLAINT against NATIONAL CITY BANK, filed by CONSUMER FINANCIAL PROTECTION BUREAU, UNITED STATES OF AMERICA. (Attachments: # 1 Civil Cover Sheet, # 2 Proposed Consent Order) (ksa) (Entered: 12/23/2013)

1 Civil Cover Sheet

View on PACER

2 Proposed Consent Order

View on PACER

Dec. 23, 2013 PACER
2

Proposed Consent Order by CONSUMER FINANCIAL PROTECTION BUREAU, UNITED STATES OF AMERICA. (ksa) (Entered: 01/09/2014)

Dec. 23, 2013 PACER
3

CONSENT ORDER. The Proposed Consent Order 2 is adopted consistent with the changes made to paragraph 2 and the signature line. In addition, counsel of record shall effectuate service of the Consent Order on all interested parties. Signed by Judge Cathy Bissoon on 1/9/2014. (acs) (Entered: 01/09/2014)

Jan. 9, 2014 PACER
4

MOTION to Intervene Pursuant to Fed.R.Civ.P. 24(a) and 42 U.S.C. sec. 3614(e) for Purposes of Filing a Fee Petition Pursuant to Fed.R.Civ.P. 54(d)(2) and 42 U.S.C. sec. 3614(d)(2) by John Rodriguez, Jennifer Worthington, Bobby Crouther, Jesus Conchas, Rosa Maria Conchas, Luis Ramos, JoAnn Ramos. (Attachments: # 1 Memorandum of Points and Authorities in Support of Motion to Intervene Pursuant to Fed.R.Civ.P. 24(a) and 42 U.S.C. sec. 3614(e) for Purposes of Filing a Fee Petition Pursuant to Fed.R.Civ.P. 54(d)(2) and 42 U.S.C. sec. 3614(d)(2), # 2 Proposed Order) (Graden, Tyler) (Entered: 01/27/2014)

1 Memorandum of Points and Authorities in Support of Motion to Intervene Pursuant

View on PACER

2 Proposed Order

View on PACER

Jan. 27, 2014 PACER
5

AFFIDAVIT re 4 MOTION to Intervene Pursuant to Fed.R.Civ.P. 24(a) and 42 U.S.C. sec. 3614(e) for Purposes of Filing a Fee Petition Pursuant to Fed.R.Civ.P. 54(d)(2) and 42 U.S.C. sec. 3614(d)(2) Declaration of Tyler S. Graden by Jesus Conchas, Rosa Maria Conchas, Bobby Crouther, JoAnn Ramos, Luis Ramos, John Rodriguez, Jennifer Worthington Affiant: Tyler S. Graden. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2) (Graden, Tyler) Modified on 1/29/2014 to correct typos. (ksa) (Entered: 01/27/2014)

1 Exhibit 1

View on PACER

2 Exhibit 2

View on PACER

Jan. 27, 2014 PACER
6

AFFIDAVIT re 4 MOTION to Intervene Pursuant to Fed.R.Civ.P. 24(a) and 42 U.S.C. sec. 3614(e) for Purposes of Filing a Fee Petition Pursuant to Fed.R.Civ.P. 54(d)(2) and 42 U.S.C. sec. 3614(d)(2) Declaration of Donna Siegel Moffa by Jesus Conchas, Rosa Maria Conchas, Bobby Crouther, JoAnn Ramos, Luis Ramos, John Rodriguez, Jennifer Worthington Affiant: Donna Siegel Moffa. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2) (Graden, Tyler) Modified on 1/29/2014 to correct typos. (ksa) (Entered: 01/27/2014)

1 Exhibit 1

View on PACER

2 Exhibit 2

View on PACER

Jan. 27, 2014 PACER
9

BRIEF in Support re 4 Motion to Intervene, filed by JESUS CONCHAS, ROSA MARIA CONCHAS, BOBBY CROUTHER, JOANN RAMOS, LUIS RAMOS, JOHN RODRIGUEZ, JENNIFER WORTHINGTON. (ksa) (Entered: 01/29/2014)

Jan. 27, 2014 PACER
7

NOTICE of Appearance by Thomas L. Allen on behalf of NATIONAL CITY BANK. (Allen, Thomas) (Entered: 01/28/2014)

Jan. 28, 2014 PACER
8

NOTICE of Appearance by Patricia L. O'Beirne on behalf of UNITED STATES OF AMERICA. (O'Beirne, Patricia) (Entered: 01/29/2014)

Jan. 29, 2014 PACER

ORDER Response/Briefing Schedule re 4 Motion to Intervene. Responses due by 2/18/2014. Signed by Judge Cathy Bissoon on 1/29/2014. Text-only entry; no PDF document will issue. This text-only entry constitutes the Order of the Court or Notice on the matter. (acs)

Jan. 29, 2014 PACER

CLERK'S OFFICE QUALITY CONTROL MESSAGE re 4 Motion to Intervene. ERROR: Document should have been filed as two separate documents. CORRECTION: Attorney Graden advised in future that documents of that nature are to be filed as separate documents. Clerk of Court docketed Brief in Support of Motion to Intervene. This message is for informational purposes only. (ksa)

Jan. 29, 2014 PACER
10

RESPONSE IN OPPOSITION to 4 Motion to Intervene, filed by NATIONAL CITY BANK. (Attachments: # 1 Exhibit A) (Allen, Thomas) (Entered: 02/18/2014)

1 Exhibit A

View on PACER

Feb. 18, 2014 PACER
11

BRIEF in Opposition re 4 Motion to Intervene, filed by CONSUMER FINANCIAL PROTECTION BUREAU. (Jung, Je Yon) (Entered: 02/18/2014)

Feb. 18, 2014 PACER
12

MOTION for Leave to File Proposed Intervenors' Motion for Leave to File a Reply Brief in Support of Motion to Intervene Pursuant to Fed.R.Civ.P. 24(a) and 42 U.S.C. sec. 3614(e) for Purposes of Filing a Fee Petition Pursuant to Fed.R.Civ.P. 54 (d)(2) and 42 U.S.C. sec. 3614(d)(2) by JESUS CONCHAS, ROSA MARIA CONCHAS, BOBBY CROUTHER, JOANN RAMOS, LUIS RAMOS, JOHN RODRIGUEZ, JENNIFER WORTHINGTON. (Attachments: # 1 Exhibit A, # 2 Proposed Order) (Graden, Tyler) (Entered: 03/07/2014)

1 Exhibit A

View on PACER

2 Proposed Order

View on PACER

March 7, 2014 PACER

ORDER granting 12 Motion for Leave to File Reply Brief. The Clerk's Office is kindly directed to file Exhibit A at Doc. 12 as the Movants' Reply to Doc. 10 . No further briefing on the 4 Motion to Intervene will be permitted. Signed by Judge Cathy Bissoon on 3/10/2014. Text-only entry; no PDF document will issue. This text-only entry constitutes the Order of the Court or Notice on the matter. (sje)

March 10, 2014 PACER
13

REPLY BRIEF re 4 Motion to Intervene, filed by JESUS CONCHAS, ROSA MARIA CONCHAS, BOBBY CROUTHER, JOANN RAMOS, LUIS RAMOS, JOHN RODRIGUEZ, JENNIFER WORTHINGTON. (ksa) (Entered: 03/11/2014)

March 10, 2014 PACER
14

MEMORANDUM ORDER denying 4 Motion to Intervene. Signed by Judge Cathy Bissoon on 6/4/2014. (sje) Modified on 6/5/2014 to add additional docket text. (ksa) (Entered: 06/04/2014)

June 4, 2014 RECAP

ORDER FOR STATISTICAL CLOSING. The court has been advised by counsel for the parties that the above captioned action has been settled and that the only matters remaining are the execution of the settlement document and the compliance of the terms set out in the settlement agreement. It appears that there is no further action required by the Court at this time. It is, accordingly, hereby ORDERED that the Clerk mark the above captioned case closed; that nothing contained in this Order shall be considered a dismissal or disposition of this action, and that should further proceedings therein become necessary or desirable, either party may initiate the same in the identical manner as if this order had not been entered. FURTHER, the Court expressly retains jurisdiction in this matter to consider any issue arising during the period when settlement is being finalized, including, but not limited to, enforcing settlement. Signed by Judge Cathy Bissoon on 9/3/14. Text-only entry; no PDF document will issue. This text-only entry constitutes the Order of the Court or Notice on the matter. (jhi)

Sept. 3, 2014 PACER
15

Joint MOTION FOR ENTRY OF DISBURSEMENT ORDER by NATIONAL CITY BANK. (Attachments: # 1 Exhibit 1, # 2 Proposed Order) (Allen, Thomas) (Entered: 12/22/2016)

1 Exhibit 1

View on PACER

2 Proposed Order

View on PACER

Dec. 22, 2016 PACER
16

ORDER granting 15 Motion for Entry of Disbursement Order. Signed by Judge Cathy Bissoon on 1/6/17. (jwr) (Entered: 01/06/2017)

Jan. 6, 2017 RECAP

State / Territory: Pennsylvania

Case Type(s):

Fair Housing/Lending/Insurance

Key Dates

Filing Date: Dec. 23, 2013

Closing Date: Jan. 6, 2017

Case Ongoing: No

Plaintiffs

Plaintiff Description:

The Consumer Financial Protection Bureau and the Department of Justice Civil Rights Division.

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

National City 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

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: 35000000

Issues

General:

Housing

Predatory lending

Discrimination-area:

Housing Sales/Rental

Lending

Discrimination-basis:

National origin discrimination

Race discrimination

Race:

Black

National Origin/Ethnicity:

Hispanic