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Case: Consumer Protection Financial Bureau v. Trident Mortgage Company LP

2:22-cv-02936 | U.S. District Court for the Eastern District of Pennsylvania

Filed Date: July 27, 2022

Case Ongoing

Clearinghouse coding complete

Case Summary

On July 27, 2022, the United States of America and the Consumer Financial Protection Bureau (CFPB) filed this lawsuit in the U.S. District Court for the Eastern District of Pennsylvania, alleging that Trident Mortgage Company engaged in a pattern or practice of lending discrimination by "redlining" in the Philadelphia metropolitan area from 2015 to 2019. Plaintiffs brought this suit under the Fair Housing Act (FHA), the Equal Credit Opportunity Act (ECOA), ECOA’s implementing regulation (Regula…

On July 27, 2022, the United States of America and the Consumer Financial Protection Bureau (CFPB) filed this lawsuit in the U.S. District Court for the Eastern District of Pennsylvania, alleging that Trident Mortgage Company engaged in a pattern or practice of lending discrimination by "redlining" in the Philadelphia metropolitan area from 2015 to 2019. Plaintiffs brought this suit under the Fair Housing Act (FHA), the Equal Credit Opportunity Act (ECOA), ECOA’s implementing regulation (Regulation B), and the Consumer Financial Protection Act of 2010 (CFPA). The Bureau claimed that Trident’s conduct was not justified by a legitimate, non-discriminatory reason or business necessity and was not necessary to achieve a substantial, legitimate, non-discriminatory interest. Rather, that Trident denied or discouraged applications by avoiding providing loans and other credit services in neighborhoods based on the race, color, or national origin of the residents of those neighborhoods. Plaintiffs sought (1) injunctive relief ordering that the defendant end its practice of discriminating and discouraging applicants based on race, color, or national origin, (2) a declaratory judgment that the defendant's acts and practices violated the FHA and ECOA, and (3) monetary damages, punitive damages, and attorney’s fees and costs. This case was assigned to District Judge Gene E.K. Pratter.

On September 14, 2022, the court entered a consent order, requiring the defendant to invest $18.4 million in funding a Loan Subsidy Program to increase the credit extended in predominantly neighborhoods of color in the Philadelphia metropolitan area, $750,000 for the development of community-based organizations or governmental organizations to provide financial, homeownership, or foreclosure prevention services to those neighborhoods, $875,000 for advertising and outreach in those neighborhoods, and $375,000 for consumer financial education. Trident was also required to pay a civil money penalty of $4 million to the Consumer Financial Protection Bureau. In addition, Trident had to retain an independent credit-needs-assessment consultant to create a report on the credit needs of predominantly neighborhoods of color within the Philadelphia metropolitan area. Under the agreement, Trident's staff will also receive bi-annual training on topics such as implicit racial bias and how to detect, prevent, and remedy redlining from a third-party trainer. To monitor Trident's progress, Plaintiffs will be able to interview any Trident employee on the status of compliance and request additional reports that must be submitted by Trident within 30 days.

The court retained jurisdiction over the matter for purposes of enforcement.

Summary Authors

Kathleen Lok (9/20/2022)

Documents in the Clearinghouse

Document
1

2:22-cv-02936

Complaint

July 27, 2022

July 27, 2022

Complaint
13

2:22-cv-02936

Consent Order

Sept. 14, 2022

Sept. 14, 2022

Order/Opinion

Docket

See docket on RECAP: https://www.courtlistener.com/docket/64435577/consumer-financial-protection-bureau-v-trident-mortgage-company-lp/

Last updated Sept. 19, 2022, 9:18 p.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT against TRIDENT MORTGAGE COMPANY LP, filed by CONSUMER FINANCIAL PROTECTION BUREAU. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C)(Watson, Rebeccah) (Additional attachment(s) added on 7/27/2022: # 4 Civil CoveCOMPLAINT against TRIDENT MORTGAGE COMPANY LP, filed by CONSUMER FINANCIAL PROTECTION BUREAU. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C)(Watson, Rebeccah) (Additional attachment(s) added on 7/27/2022: # 4 Civil Cover Sheet) # 5 Designation Form) (va). (Attachment 4 replaced on 7/27/2022) (sbt).r Sheet) # 5 Designation Form) (va). (Attachment 4 replaced on 7/27/2022) (sbt). (Attachment 5 replaced on 7/27/2022) (sbt). (Entered: 07/27/2022)

July 27, 2022

July 27, 2022

Clearinghouse
2

STIPULATION re 1 Complaint (IFP or Government Plaintiff) by CONSUMER FINANCIAL PROTECTION BUREAU. (Attachments: # 1 Civil Cover Sheet, # 2 Designation Form)(Watson, Rebeccah) (Attachments uploaded in error. Uploaded to Complaint as per Atty.) Modified on 7/27/2022 (va). (Entered: 07/27/2022)

July 27, 2022

July 27, 2022

PACER
3

EXHIBIT Revised Designation Form by CONSUMER FINANCIAL PROTECTION BUREAU.. (Watson, Rebeccah) (Entered: 07/27/2022)

July 27, 2022

July 27, 2022

PACER
4

Summons Issued as to TRIDENT MORTGAGE COMPANY LP. Forwarded To: counsel on 7/27/22 (mbh) (Entered: 07/27/2022)

July 27, 2022

July 27, 2022

PACER

Attorneys are required by local rule to complete and file both a Civil Cover Sheet and a Designation Form. Plaintiff's counsel is directed to file COMPLETED Designation Form, since the top section isn't complete, in this case using the Exhibit docket event. (sbt)

July 27, 2022

July 27, 2022

PACER

Attorney Required Forms

July 27, 2022

July 27, 2022

PACER
5

NOTICE of Appearance by GERALD B. SULLIVAN on behalf of UNITED STATES OF AMERICA (SULLIVAN, GERALD) (Entered: 08/02/2022)

Aug. 2, 2022

Aug. 2, 2022

PACER
6

NOTICE of Appearance by Sara Lewenberg Niles on behalf of UNITED STATES OF AMERICA (Niles, Sara) (Entered: 08/02/2022)

Aug. 2, 2022

Aug. 2, 2022

PACER
7

NOTICE of Appearance by DAVID H. PITTINSKY on behalf of TRIDENT MORTGAGE COMPANY LP with Certificate of Service(PITTINSKY, DAVID) (Entered: 08/10/2022)

Aug. 10, 2022

Aug. 10, 2022

PACER
8

NOTICE of Hearing: TELEPHONE CONFERENCE SET FOR 8/19/2022 AT 10:00 AM BEFORE THE HONORABLE GENE E.K. PRATTER.(sfl) (Entered: 08/12/2022)

Aug. 12, 2022

Aug. 12, 2022

PACER
9

MOTION for Leave to Appear Pro Hac Vice filed by TRIDENT MORTGAGE COMPANY LP.Declaration, Certificate of Service.(PITTINSKY, DAVID) (Entered: 08/17/2022)

Aug. 17, 2022

Aug. 17, 2022

PACER
10

ORDER RE: EACH ATTORNEY SHALL HAVE UNTIL 8/24/2022 TO REMIT THE $40 FILING FEE TO THE CLERK OF COURT OR THE COURT WILL DENY THE MOTION 9 WITHOUT PREJUDICE.. SIGNED BY THE HONORABLE GENE E.K. PRATTER ON 8/17/2022. 8/17/2022 ENTERED AND COPIES E-MAILED.(sfl) (Entered: 08/17/2022)

Aug. 17, 2022

Aug. 17, 2022

PACER
11

Filing fee: $ 120, receipt number 20001307. (mbh) (Entered: 08/18/2022)

Aug. 18, 2022

Aug. 18, 2022

PACER
12

ORDER granting 9 MOTION FOR LEAVE TO APPEAR. SIGNED BY THE HONORABLE GENE E.K. PRATTER ON 8/18/2022.8/18/2022 ENTERED AND COPIES E-MAILED.(sfl) (Entered: 08/18/2022)

Aug. 18, 2022

Aug. 18, 2022

PACER
13

CONSENT ORDER. SIGNED BY THE HONORABLE GENE E.K. PRATTER ON 9/14/2022. 9/14/2022 ENTERED AND COPIES E-MAILED.(sfl) (Entered: 09/14/2022)

Sept. 14, 2022

Sept. 14, 2022

PACER

Case Details

State / Territory: Pennsylvania

Case Type(s):

Fair Housing/Lending/Insurance

Fair Housing/Lending/Insurance

Key Dates

Filing Date: July 27, 2022

Case Ongoing: Yes

Plaintiffs

Plaintiff Description:

The United States of America and the Consumer Financial Protection Bureau.

Plaintiff Type(s):

U.S. Dept of Justice plaintiff

Non-DOJ federal government 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

Trident Mortgage Company LP, 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

Declaratory Judgment

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: 24,400,000

Order Duration: 2022 - None

Content of Injunction:

Discrimination Prohibition

Develop anti-discrimination policy

Issues

General:

Housing

Discrimination-area:

Lending

Discrimination-basis:

National origin discrimination

Race discrimination