Filed Date: Sept. 30, 2013
Closed Date: 2015
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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)
Anderson, John F. (Virginia)
Boente, Dana J. (District of Columbia)
Carlson, Lucy G. (District of Columbia)
Barloon, Joseph L. (District of Columbia)
Brown, Austin K. (District of Columbia)
Anderson, John F. (Virginia)
Trenga, Anthony John (District of Columbia)
Last updated April 2, 2024, 3:17 a.m.
State / Territory: Virginia
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
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):
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: $2,850,000.00
Order Duration: 2013 - 2014
Content of Injunction:
Develop anti-discrimination policy
Issues
General:
Discrimination-area:
Discrimination-basis:
National origin discrimination
Race:
National Origin/Ethnicity: