Filed Date: Dec. 8, 2010
Closed Date: 2015
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On December 08, 2010, the United States Department of Justice filed a lawsuit in the United States District Court, Northern District of Texas under the Fair Housing and Equal Credit Opportunity Acts against PrimeLending. The plaintiff asked the court for injunctive and monetary relief, claiming that the defendant displayed a pattern and practice of discrimination in lending on the basis of race against African-American borrowers.
On January 11, 2011, the parties entered into a consent order in which Primelending agreed to, 1) refrain from engaging in any act or practice that discriminates on the basis of race in any aspect of a residential real estate-related transaction, 2) alter its lending policy and procedures to prevent the facilitation of race based discrimination, 3) submit to a monitoring and reporting program to ensure compliance with the consent order, 4) provide borrowers with a general notice of nondiscrimination, 5) provide equal credit opportunity training to its employees and officers, 6) provide a total of $2 million to be distributed among those aggrieved, 7) allocate any portion of the $2 million that remains unclaimed to organizations that provide credit counseling and general financial education to African-American borrowers, 8) maintain a complaint resolution program to resolve discrimination claims by borrowers.
In September 2012, the defendants finished giving $2 million to those aggrieved as per the consent order and then received permission from the court to disburse the remaining $367,900 to 15 organizations supporting African-American borrowers. The consent decree terminated in 2015, and the case is now closed.
Summary Authors
Gregory Pitt (8/2/2012)
Elena Malik (11/6/2017)
Holder, Eric H. Jr. (District of Columbia)
Mosteller, Daniel P. (District of Columbia)
Parker, John R (Texas)
Perez, Thomas E. (District of Columbia)
Hancock, Paul F. (Florida)
Solis, Jorge Antonio (Texas)
Last updated March 2, 2024, 3:10 a.m.
State / Territory: Texas
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: Dec. 8, 2010
Closing Date: 2015
Case Ongoing: No
Plaintiffs
Plaintiff Description:
United States of America, 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
Primelending (Dallas, Dallas), Private Entity/Person
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
Available Documents:
Injunctive (or Injunctive-like) Relief
Outcome
Prevailing Party: Plaintiff
Nature of Relief:
Injunction / Injunctive-like Settlement
Source of Relief:
Form of Settlement:
Court Approved Settlement or Consent Decree
Amount Defendant Pays: $2 million
Order Duration: 2011 - 2015
Issues
General:
Discrimination-area:
Discrimination-basis:
Race: