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Case Name United States v. AIG Federal Savings Bank FH-DE-0001
Docket / Court 1:10-cv-00178-JJF ( D. Del. )
State/Territory Delaware
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On March 4, 2010, the United States of America filed this lawsuit under the Fair Housing and Equal Credit Opportunity Acts against AIG Federal Savings Bank in the United States District Court, District of Delaware. The plaintiff, represented by attorneys from the U.S. Department of Justice and the ... read more >
On March 4, 2010, the United States of America filed this lawsuit under the Fair Housing and Equal Credit Opportunity Acts against AIG Federal Savings Bank in the United States District Court, District of Delaware. The plaintiff, represented by attorneys from the U.S. Department of Justice and the U.S. Attorney's office asked the court for declaratory, injunctive, and monetary relief, claiming that AlG had engaged in a pattern or practice of discrimination on the basis of race. Specifically, the U.S. claimed that from July 2003 to May 2006, black borrowers nationwide were charged broker fees 20 basis points higher, on average, than the broker fees charged to white borrowers.

On March 19, 2010, the parties entered into a consent decree in which the bank agreed to: 1) refrain from engaging in any act or practice in wholesale home mortgage lending that discriminates on the basis of race or color; 2) maintain during the period of the order annual fair lending training; 3) develop and implement specific, nonracial standards for the assessment of direct broker fees on residential real estate-related loans; 4) post and prominently display in each location where loan applications are received by the lender a notice of nondiscrimination; 5) require brokers to make certain disclosures to applicants; 6) participate in a monitoring program to ensure compliance with the provisions of the consent decree; 7) provide a minimum of $1 million to certain organizations to provide credit counseling, financial literacy; and other related educational programs to African-American borrowers; 8) provide employees with equal credit opportunity training; and 9) pay $6.1 million in damages to those affected by AIG's discriminatory lending practices.

On July 7, 2011, the Court (Judge Leonard P. Stark) entered an order for distribution of the funds remaining in the settlement fund ($1,268,372.92) among the National Urban League, Operation HOPE and the American Financial Services Association Education Foundation.

Gregory Pitt - 07/30/2012
Asma Husain - 02/14/2016


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Issues and Causes of Action
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Issues
Content of Injunction
Develop anti-discrimination policy
Discrimination Prohibition
Monitoring
Reporting
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
Race discrimination
General
Predatory lending
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) AIG Federal Savings Bank
Plaintiff Description The United States of America on behalf of African-American borrowers affected by AIG's discriminatory lending practices
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 2010 - 2013
Case Closing Year n/a
Case Ongoing Unknown
Docket(s)
1:10-cv-00178 (D. Del.) 07/07/2011
FH-DE-0001-9000 PDF | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 03/19/2010
FH-DE-0001-0001 PDF | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Consent Decree 03/19/2010
FH-DE-0001-0002 PDF | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Disbursement Order 07/07/2011 (D. Del.)
FH-DE-0001-0003 PDF | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Stark, Leonard Philip (D. Del.) [Magistrate]
FH-DE-0001-0002 | FH-DE-0001-0003 | FH-DE-0001-9000
Monitors/Masters None on record
Plaintiff's Lawyers Dull, Robin L. (District of Columbia)
FH-DE-0001-0001 | FH-DE-0001-0002
Griffin, Howard R. (District of Columbia)
FH-DE-0001-0001 | FH-DE-0001-0002 | FH-DE-0001-9000
Hanson, Shannon T. (Delaware)
FH-DE-0001-0001 | FH-DE-0001-9000
Murphy, Donna M. (District of Columbia)
FH-DE-0001-0001 | FH-DE-0001-0002
Weiss, David C. (Delaware)
FH-DE-0001-0001
Defendant's Lawyers Hefferon, Thomas M. (District of Columbia)
FH-DE-0001-0002
Mierzewski, Michael B. (District of Columbia)
FH-DE-0001-0002
Other Lawyers None on record

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