Case: United States v. Chevy Chase Bank, F.S.B.

1:13-cv-01214 | U.S. District Court for the Eastern District of Virginia

Filed Date: Sept. 30, 2013

Closed Date: 2015

Clearinghouse coding complete

Case Summary

On September 30, 2013, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of Virginia on behalf of 3,100 African American and Hispanic residential mortgage borrowers against a bank, alleging that it engaged in discriminatory lending practices. The Office of the Comptroller of the Currency referred this case to the plaintiff after completing investigatory action because a bank purchased the defendant. The plaintiffs alleged that, as a re…

On September 30, 2013, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of Virginia on behalf of 3,100 African American and Hispanic residential mortgage borrowers against a bank, alleging that it engaged in discriminatory lending practices. The Office of the Comptroller of the Currency referred this case to the plaintiff after completing investigatory action because a bank purchased the defendant.

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 residential mortgage loans than non-Hispanic White borrowers. The complaint asked the court for a declaratory judgment, injunctive relief and monetary damages.

Specifically, the plaintiffs alleged that the defendant set wholesale loan prices unrelated to credit risk characteristics and loan terms. The defendant did not 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 for loan applications submitted to the lender.

The plaintiff filed a proposed consent order on September 30, 2013, that was entered by the Court (District Judge Anthony J. Trenga) on October 3, 2013. Under the consent order, the defendant agreed to compensate certain African-American and Hispanic residential mortgage borrowers through a settlement fund.

After disbursing the $2,850,000 Settlement Fund to effected parties, more than $200,000 remained in the fund. On November 13, 2014, the court ordered this remaining money to be disbursed to three organizations chosen by the parties - National Council of La Raza, the Northern Virginia Urban League, and the Greater Washington Urban League.

After completing the disbursements, this case was dismissed on January 26, 2015. It is now closed.

Summary Authors

Megan Richardson (2/24/2014)

People


Judge(s)

Anderson, John F. (Virginia)

Trenga, Anthony John (District of Columbia)

Attorneys(s) for Plaintiff

Boente, Dana J. (District of Columbia)

Carlson, Lucy G. (District of Columbia)

Gordon, Steven Eric (Virginia)

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

Montag, Coty R (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Samuels, Jocelyn (District of Columbia)

Attorneys(s) for Defendant

Barloon, Joseph L. (District of Columbia)

Judge(s)

Anderson, John F. (Virginia)

Trenga, Anthony John (District of Columbia)

Attorneys(s) for Plaintiff

Boente, Dana J. (District of Columbia)

Carlson, Lucy G. (District of Columbia)

Gordon, Steven Eric (Virginia)

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

Montag, Coty R (District of Columbia)

Rosenbaum, Steven H. (District of Columbia)

Samuels, Jocelyn (District of Columbia)

Attorneys(s) for Defendant

Barloon, Joseph L. (District of Columbia)

Brown, Austin K. (District of Columbia)

Carney, David Emmett (District of Columbia)

Raman, Anand S. (District of Columbia)

Documents in the Clearinghouse

Document

Docket [PACER]

United States v. Chevy Chase Bank, F.S.B.

Oct. 3, 2013 Docket
1

Complaint

United States of America v. Chevy Chase Bank

Sept. 30, 2013 Complaint
7

Settlement Agreement and Order

United States v. Chevy Chase Bank, F.S.B.

Oct. 2, 2013 Settlement Agreement

Docket

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

ECF Number Description Date Link
1

COMPLAINT against Chevy Chase Bank, F.S.B. filed by UNITED STATES OF AMERICA. (Attachments: # 1 Civil Cover Sheet)(jlan) (Entered: 10/01/2013)

Sept. 30, 2013
2

MOTION for Entry of Settlement Agreement and Order by UNITED STATES OF AMERICA. (Attachments: # 1 Proposed Order)(jlan) (Entered: 10/01/2013)

Sept. 30, 2013
3

Notice of Hearing (WAIVER) (jlan) (Entered: 10/01/2013)

Sept. 30, 2013
4

CERTIFICATE of Service by UNITED STATES OF AMERICA (jlan) (Entered: 10/01/2013)

Sept. 30, 2013
5

NOTICE of Appearance by David Emmett Carney on behalf of Chevy Chase Bank, F.S.B. (Carney, David) (Entered: 10/01/2013)

Oct. 1, 2013
6

Motion to appear Pro Hac Vice by Anand S. Raman and Certification of Local Counsel David E. Carney Filing fee $ 75, receipt number 0422−3690357. by Chevy Chase Bank, F.S.B.. (Carney, David) (Entered: 10/01/2013)

Oct. 1, 2013
8

ORDER granting 6 Motion to appear Pro Hac Vice by Anand S. Raman and Certification of Local Counsel David E. Carney. Signed by District Judge Anthony J Trenga on 10/03/2013. (jlan) (Entered: 10/04/2013)

Oct. 3, 2013

State / Territory: Virginia

Case Type(s):

Fair Housing/Lending/Insurance

Key Dates

Filing Date: Sept. 30, 2013

Closing Date: 2015

Case Ongoing: No

Plaintiffs

Plaintiff Description:

Plaintiff is the United States Attorney's Office for the Eastern District of Virginia and the United States Department of Justice Civil Rights Division's 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

Chevy Chase 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: $2,850,000.00

Order Duration: 2013 - 2014

Content of Injunction:

Develop anti-discrimination policy

Reporting

Recordkeeping

Issues

General:

Housing

Predatory lending

Discrimination-area:

Lending

Discrimination-basis:

National origin discrimination

Race discrimination

Race:

Black

National Origin/Ethnicity:

Hispanic