This case, brought by the United States in December 2011 against Countrywide Financial Corporation, resulted in the largest residential fair lending settlement in U.S. history. $335 million was paid to compensate more than 200,000 African-American and Hispanic borrowers who were allegedly charged higher fees and interest rates because of their race or national origin. The United States also claimed that Countrywide and its subsidiaries ("the Countrywide Defendants") steered thousands of African-American and Hispanic borrowers into subprime mortgages when non-Hispanic white borrowers with similar credit profiles received prime loans.
Prior to entry of the Consent Decree, the Countrywide defendants had stopped originating residential loans. In addition to the monetary relief, the consent decree contained remedial provisions to become effective in the event the Countywide defendants ever reentered this business. These included implementation of policies and practices to prevent and detect potential fair lending violations not only on the basis of race or national origin, but also on the basis of marital status. Regarding monetary relief, the court required that the defendants deposit $335 million to compensate allegedly aggrieved persons for monetary and other damages they may have suffered as a result of the defendants' alleged violations of the FHA and the ECOA. Each party bore its own costs and attorneys' fees.
The Consent Decree had a four-year term, beginning December 21, 2011.
On January 25, 2016, the Court (Philip S. Gutierrez) entered an amended Consent Decree which extended provisions of the settlement to December 30, 2016. The amended decree required the defendants to present a proposal to the court for the distribution of all money remaining in the Settlement Fund by October 14, 2016.
On April 5, 2016, the court granted am April 4 disbursement order, which granted, among sums to other organizations: (a) The National Urban League $1,000,000.00; (b) National Council of La Raza $1,500,000.00; (c) Habitat for Humanity $1,000,000.00; (d) d. Self−Help Ventures Fund $1,500,000.00; (e) Atlanta Neighborhood Development Partnership $1,000,000; (f) Opportunity Resource Fund $1,000,000.00; (g) Neighborhood Housing Services of Chicago $1,500,000.00; (h) NHS of Los Angeles County $2,000,000.00.
On October 27, 2016, the court approved the defendant's second disbursement plan.
The was no further docket activity after this order and the case is now closed.
Gregory Pitt - 07/16/2012
Asma Husain - 02/14/2016
Raul Noguera-McElroy - 04/19/2019
compress summary
