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Case Name United States v. Long Beach Mortgage Company FH-CA-0001
Docket / Court 2:96-cv-06159-DT-CW ( C.D. Cal. )
State/Territory California
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On September 5, 1996, the U.S. Department of Justice filed a lawsuit under 42 U.S.C. §§ 3601-3619 (Fair Housing Act) and 15 U.S.C. § 1691 (Equal Credit Opportunity Act) against the Long Beach Mortgage Company in the United States District Court for the Central District of California. The ... read more >
On September 5, 1996, the U.S. Department of Justice filed a lawsuit under 42 U.S.C. §§ 3601-3619 (Fair Housing Act) and 15 U.S.C. § 1691 (Equal Credit Opportunity Act) against the Long Beach Mortgage Company in the United States District Court for the Central District of California. The Department of Justice sought declaratory and injunctive relief and monetary damages on behalf of African-Americans, Latinos, women, and persons over 55 who had allegedly been victims of the defendant's discriminatory policies. Specifically, the DOJ alleged that Long Beach, a sub-prime mortgage lender, had failed properly instructed its employees regarding their obligation to treat prospective customers without regard to race, national origin, gender or age in compliance with fair lending laws. The DOJ further alleged that the company used a number of discriminatory practices and tactics that resulted in a pattern of higher fees and costs for loan applicants of minority groups.

Contemporaneously with filing the complaint, the parties submitted a proposed Settlement Agreement to the Court for approval. The Agreement established objective guidelines for establishing the risk of future mortgage applicants, and set up a training program for Long Beach employees. The Agreement also created a monitoring program to help Long Beach ensure that no further pattern of discrimination would emerge in its practice, and established a record keeping and reporting program that included semi-annual reports to the DOJ. Long Beach further agreed to establish a fund of $3 million to reimburse its borrowers previously given unfair terms, and to donate $1 million to consumer education programs. The District Court (Judge Dickran Tevrizian) approved the Settlement Agreement on September 5, 1996.

The PACER docket does not reflect any further activity on the case.

Nick Niles - 07/12/2007


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Issues and Causes of Action
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Issues
Discrimination-area
Lending
Discrimination-basis
Age discrimination
Sex discrimination
National Origin/Ethnicity
Hispanic
Race
Black
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
Defendant(s) Long Beach Mortgage Company
Plaintiff Description The United States, on behalf of African American, Hispanic, female and/or elderly customers who took out loans from Long Beach between 01/1991 and 06/1994.
Indexed Lawyer Organizations U.S. Dept. of Justice Civil Rights Division
Class action status sought No
Class action status granted No
Prevailing Party Plaintiff
Public Int. Lawyer Yes
Nature of Relief Damages
Injunction / Injunctive-like Settlement
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 1996 - 1999
Case Closing Year 1996
Case Ongoing No
Docket(s)
2:96-cv-06159-DT-CW (C.D. Cal.) 09/05/1996
FH-CA-0001-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint for Compensatory and Punitive Damages, Civil Money Penalties and Injunctive Relief 09/05/1996
FH-CA-0001-0001.pdf | Detail
Settlement Agreement and Order Thereon 09/05/1996
FH-CA-0001-0002.pdf | Detail
USDOJ Press Release: "Long Beach Lender to Pay $3 Million for Allegedly Charging Higher Rates to African Americans, Hispanics, Women, and the Elderly" 09/05/1996
FH-CA-0001-0003.pdf | Detail
Judges Tevrizian, Dickran M. Jr. (C.D. Cal.)
FH-CA-0001-0002 | FH-CA-0001-9000
Woehrle, Carla M. (C.D. Cal.) [Magistrate]
FH-CA-0001-9000
Monitors/Masters None on record
Plaintiff's Lawyers Cass, Jennifer (District of Columbia)
FH-CA-0001-0001 | FH-CA-0001-0002 | FH-CA-0001-9000
Dowell, Gavin C. (District of Columbia)
FH-CA-0001-0001 | FH-CA-0001-0002 | FH-CA-0001-9000
Hancock, Paul F. (District of Columbia)
FH-CA-0001-0001 | FH-CA-0001-0002 | FH-CA-0001-9000
Johnston, Pamela L. (California)
FH-CA-0001-0001
Manella, Nora Margaret (California)
FH-CA-0001-0001
Patrick, Deval L. (District of Columbia)
FH-CA-0001-0001 | FH-CA-0001-0002 | FH-CA-0001-0003 | FH-CA-0001-9000
Reno, Janet (District of Columbia)
FH-CA-0001-0001
Ross, Alexander C. (District of Columbia)
FH-CA-0001-0001 | FH-CA-0001-0002 | FH-CA-0001-9000
Weidman, Leon W. (California)
FH-CA-0001-0001
Defendant's Lawyers Noto, Thomas J. (District of Columbia)
FH-CA-0001-0002
Platt, Laurence E. (District of Columbia)
FH-CA-0001-0002
Stevens, Ronald W. (District of Columbia)
FH-CA-0001-0002
Thornburgh, Dick (District of Columbia)
FH-CA-0001-0002
Other Lawyers None on record

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