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Case Name United States v. Countrywide Financial Corporation FH-CA-0007
Docket / Court 2: 11-CV-10540-PSG-AJW ( 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
This case, brought by the United States in December 2011 against Countrywide Financial Corporation, resulted in the largest residential fair lending settlement in U.S. history. $335 million was paid to compensate more than 200,000 African-American and Hispanic borrowers who were allegedly charged ... read more >
This case, brought by the United States in December 2011 against Countrywide Financial Corporation, resulted in the largest residential fair lending settlement in U.S. history. $335 million was paid to compensate more than 200,000 African-American and Hispanic borrowers who were allegedly charged higher fees and interest rates because of their race or national origin. The United States also claimed that Countrywide and its subsidiaries ("the Countrywide Defendants") steered thousands of African-American and Hispanic borrowers into subprime mortgages when non-Hispanic White borrowers with similar credit profiles received prime loans.

Prior to entry of the Consent Decree, the Countrywide Defendants had stopped originating residential loans. In addition to the monetary relief, the consent decree contained remedial provisions to become effective in the event the Countywide Defendants ever reentered this business. These included implementation of policies and practices to prevent and detect potential fair lending violations not only on the basis of race or national origin, but also on the basis of marital status.

The Consent Decree had a four-year term, beginning December 21, 2011.

On January 25, 2016, the Court (Philip S. Gutierrez) entered an amended Consent Decree which extended provisions of the settlement to December 30, 2016.

Gregory Pitt - 07/16/2012
Asma Husain - 02/14/2016


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Issues and Causes of Action
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Issues
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
Race discrimination
General
Housing
Predatory lending
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) Countrywide Financial Corporation
Plaintiff Description United States
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 2011 - 2015
Case Closing Year 2016
Case Ongoing Yes
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)
2:11−cv−10540 (C.D. Cal.) 01/25/2016
FH-CA-0007-9000 PDF | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Press Release 12/21/2011
FH-CA-0007-0001 PDF | Detail
Complaint 12/21/2011
FH-CA-0007-0002 PDF | Detail
Consent Decree 12/28/2011 (2011 U.S.Dist.LEXIS 150263)
FH-CA-0007-0003 PDF | LEXIS | Detail
Amended Consent Order 01/25/2016 (C.D. Cal.)
FH-CA-0007-0004 PDF | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Gutierrez, Philip S. (C.D. Cal.)
FH-CA-0007-0004 | FH-CA-0007-9000
Wistrich, Andrew J. (C.D. Cal.) [Magistrate]
FH-CA-0007-9000
Monitors/Masters None on record
Plaintiff's Lawyers Dougherty , Burtis M. (District of Columbia)
FH-CA-0007-0002 | FH-CA-0007-0003 | FH-CA-0007-0004 | FH-CA-0007-9000
Holder, Eric H. Jr. (District of Columbia)
FH-CA-0007-0002 | FH-CA-0007-0003
Mosteller, Daniel P. (District of Columbia)
FH-CA-0007-0002 | FH-CA-0007-0003 | FH-CA-0007-9000
Murphy, Donna M. (District of Columbia)
FH-CA-0007-0002 | FH-CA-0007-0003
O'Beirne, Patricia (District of Columbia)
FH-CA-0007-0002 | FH-CA-0007-0003 | FH-CA-0007-0004 | FH-CA-0007-9000
Perez, Thomas E. (District of Columbia)
FH-CA-0007-0002
Rosenbaum, Steven H. (District of Columbia)
FH-CA-0007-0002 | FH-CA-0007-0003 | FH-CA-0007-0004
Sneed, Sekret T (California)
FH-CA-0007-0004 | FH-CA-0007-9000
Weidman, Leon W. (California)
FH-CA-0007-0002 | FH-CA-0007-0003 | FH-CA-0007-0004
Defendant's Lawyers Asfour, Kevin S. (California)
FH-CA-0007-0004 | FH-CA-0007-9000
Brody, Melanie (District of Columbia)
FH-CA-0007-0003
Goldstein, Seth M. (California)
FH-CA-0007-9000
Other Lawyers None on record

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