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Civil Rights Litigation Clearinghouse
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Case Name United States v. Fleet Mortgage Corp. FH-NY-0003
Docket / Court CV 96 2279 ( E.D.N.Y. )
State/Territory New York
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
The Department of Justice filed suit on May 7, 1996, in the U.S. District Court for the Eastern District of New York against a mortgage company subsidiary of Fleet Mortgage Financial Group alleging that it engaged in discriminatory lending practices.

The Department of Justice ... read more >
The Department of Justice filed suit on May 7, 1996, in the U.S. District Court for the Eastern District of New York against a mortgage company subsidiary of Fleet Mortgage Financial Group alleging that it engaged in discriminatory lending practices.

The Department of Justice specifically argued that the defendant charged African American and Hispanic borrowers higher prices for home mortgage loans than comparatively qualified white borrowers by requiring African American and Hispanic borrowers to pay higher interest rates or upfront fees. These allegations surfaced after the Federal Reserve completed a routine compliance check with two of Fleet Mortgage Financial Group's branches in Westbury, New York and Woodbridge, New Jersey.

The parties settled the case on June 24, 1996, which was signed by the court. Under the settlement agreement, the defendant will establish a four million dollar settlement fund to compensate minority borrowers who the parties agree paid higher prices for loans between August 1993 and June 1994. The fund will also contribute to a fair lending outreach campaign. In addition, the defendant is permanently enjoined from continuing such discriminatory practices.

Andrew Nash - 06/02/2008
Megan Richardson - 03/30/2014


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Issues and Causes of Action
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Issues
Content of Injunction
Develop anti-discrimination policy
Monitoring
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
Race discrimination
General
Housing
Predatory lending
National Origin/Ethnicity
Hispanic
Plaintiff Type
U.S. Dept of Justice plaintiff
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) Fleet Mortgage Corp.
Plaintiff Description The Department of Justice Civil Rights Division Section on Housing and Civil Enforcement.
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 Private Settlement Agreement
Order Duration 1996 - 1999
Case Closing Year 1996
Case Ongoing No
Additional Resources
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Case Studies Insurer Must Pay $100.5 Million in Redlining Case
The New York Times
Written: Oct. 27, 1998
By: Joseph B. Treaster
[ Detail ] [ External Link ]

  Nationwide Settles Virginia Redlining Suit
Property Casualty 360
Written: May. 06, 2000
By: Amanda Levin
[ Detail ] [ External Link ]

  The Origins of Fair Lending Litigation
Written: Dec. 04, 2008
By: Andrew Nash (Washington University in St. Louis)
[ Detail ] [ PDF ] [ External Link ]

Docket(s)
1:96-cv-02279-ERK-ASC (E.D.N.Y.) 06/24/1996
FH-NY-0003-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
[Summary of Case from the DOJ]
FH-NY-0003-0001.pdf | Detail
Complaint
FH-NY-0003-0002.pdf | Detail
Settlement Agreement 05/07/1996
FH-NY-0003-0003.pdf | Detail
Fleet Subsidiary to Pay $4 Million to Settle Claims that Blacks and Hispanics were Charged Higher Loan Prices than Whites 05/07/1996
FH-NY-0003-0004.pdf | Detail
Judges Chrein, A. Simon (E.D.N.Y.) [Magistrate]
FH-NY-0003-9000
Korman, Edward Robert (E.D.N.Y.)
FH-NY-0003-9000
Monitors/Masters None on record
Plaintiff's Lawyers Carter, Zachary W. (New York)
FH-NY-0003-0002 | FH-NY-0003-0003
Cohen, Sanford M. (New York)
FH-NY-0003-0002 | FH-NY-0003-0003 | FH-NY-0003-9000
Griffin, Howard R. (District of Columbia)
FH-NY-0003-0002 | FH-NY-0003-0003 | FH-NY-0003-9000
Hancock, Paul F. (District of Columbia)
FH-NY-0003-0002 | FH-NY-0003-0003
Patrick, Deval L. (District of Columbia)
FH-NY-0003-0002 | FH-NY-0003-0003
Reno, Janet (District of Columbia)
FH-NY-0003-0002 | FH-NY-0003-0003
Ross, Alexander C. (District of Columbia)
FH-NY-0003-0002 | FH-NY-0003-0003 | FH-NY-0003-9000
Defendant's Lawyers Bennett, Robert Stephen (District of Columbia)
FH-NY-0003-0003 | FH-NY-0003-9000
Sandler, Andrew L. (District of Columbia)
FH-NY-0003-0003
Sweet, William J. Jr. (District of Columbia)
FH-NY-0003-0003
Taylor, Eric Jon (Georgia)
FH-NY-0003-0003
Weirich, C. Geoffrey (Georgia)
FH-NY-0003-0003
Other Lawyers None on record

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