Filed Date: May 7, 1996
Closed Date: 1999
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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 the company 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 approved by the court. Under the settlement agreement, the defendant was required to establish a four million dollar settlement fund to compensate minority borrowers who the parties agreed had paid higher prices for loans between August 1993 and June 1994. The fund was also to contribute to a fair lending outreach campaign. In addition, the defendant was permanently enjoined from continuing such discriminatory practices.
The case is now closed.
Summary Authors
Andrew Nash (6/2/2008)
Megan Richardson (3/30/2014)
Chrein, A. Simon (New York)
Carter, Zachary W. (New York)
Cohen, Sanford M. (New York)
Griffin, Howard R. (District of Columbia)
Bennett, Robert Stephen (District of Columbia)
Chrein, A. Simon (New York)
Korman, Edward Robert (New York)
Last updated April 20, 2024, 3:11 a.m.
State / Territory: New York
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: May 7, 1996
Closing Date: 1999
Case Ongoing: No
Plaintiffs
Plaintiff Description:
The Department of Justice Civil Rights Division 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
Fleet Mortgage Corp., 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:
Amount Defendant Pays: $4,000,000.00
Order Duration: 1996 - 1999
Content of Injunction:
Develop anti-discrimination policy
Issues
General:
Discrimination-area:
Discrimination-basis:
National origin discrimination
Race:
National Origin/Ethnicity: