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Case Name United States of America v. Wells Fargo Bank FH-DC-0005
Docket / Court 1:12-cv-01150 ( D.D.C. )
State/Territory District of Columbia
Case Type(s) Fair Housing/Lending/Insurance
Case Summary
On July 12, 2012, the United States, on behalf of over 34,000 African-American and Hispanic borrowers, filed a lawsuit under the Fair Housing and Equal Credit Opportunity Acts in the United States District Court, District of Columbia. Plaintiff, represented by attorneys from the United States ... read more >
On July 12, 2012, the United States, on behalf of over 34,000 African-American and Hispanic borrowers, filed a lawsuit under the Fair Housing and Equal Credit Opportunity Acts in the United States District Court, District of Columbia. Plaintiff, represented by attorneys from the United States Department of Justice, asked the court for injunctive and monetary relief, claiming that the discriminatory lending practices of Defendant adversely affected African American and Hispanic borrowers. Specifically, Plaintiff claimed that during and between 2004 and 2009, Defendant engaged in a pattern or practice of discrimination on the basis of race and national origin in residential mortgage lending. Two other cases -- Baltimore v. Wells Fargo (FH-MD-0001 in the Clearinghouse) and Memphis v. Wells Fargo (FH-TN-0002 in the Clearinghouse) have made essentially equivalent allegations.

On July 12, 2012, the Court entered a consent order resolving Plaintiff's claims. The settlement provided $125 million in compensation for wholesale borrowers who were steered into subprime mortgages or who paid higher fees and rates based on their race or national origin. Defendant also agreed to provide $50 million in direct down payment assistance to borrowers in certain areas of the country. Additionally, Defendant agreed to conduct an internal review of its retail mortgage lending and will compensate borrowers who were placed into subprime loans based on their race or national origin.

This case is ongoing with semi-annual reports by the Defendant.

Gregory Pitt - 07/16/2012


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Issues and Causes of Action
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Issues
Content of Injunction
Develop anti-discrimination policy
Implement complaint/dispute resolution process
Monitoring
Reporting
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
Race discrimination
General
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) Wells Fargo Bank
Plaintiff Description The United States on behalf of more than 34,000 African-American and Hispanic borrowers.
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 Private Settlement
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2012 - 2015
Case Closing Year n/a
Case Ongoing Unknown
Case Listing FH-MD-0001 : City of Baltimore v. Wells Fargo (D. Md.)
FH-TN-0002 : City of Memphis v. Wells Fargo Bank, N.A. (W.D. Tenn.)
Additional Resources
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Case Studies The Origins of Fair Lending Litigation
Written: Dec. 04, 2008
By: Andrew Nash (Washington University in St. Louis)
[ Detail ] [ PDF ] [ External Link ]

Docket(s)
1:12-cv-01150 (D.D.C.) 12/19/2012
FH-DC-0005-9000 PDF | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Consent Order 07/12/2012 (D.D.C.)
FH-DC-0005-0004 PDF | Detail
Press Release 07/12/2012
FH-DC-0005-0001 PDF | Detail
JOINT MOTION FOR ENTRY OF CONSENT ORDER AND STATEMENT OF POINTS AND AUTHORITIES 07/12/2012
FH-DC-0005-0002 PDF | Detail
Complaint 07/12/2012
FH-DC-0005-0003 PDF | Detail
Memorandum Opinion and Order 09/20/2012 (891 F.Supp.2d 143) (D.D.C.)
FH-DC-0005-0005 PDF | WESTLAW| LEXIS | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Consent Order 09/21/2012 (D.D.C.)
FH-DC-0005-0006 PDF | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Notice Regarding Additional Monetary Relief 12/19/2012
FH-DC-0005-0007 PDF | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Bates, John D. Court not on record
FH-DC-0005-0005 | FH-DC-0005-0006
Monitors/Masters None on record
Plaintiff's Lawyers Guzman, Javier M (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007 | FH-DC-0005-9000
Hecker, Elizabeth Parr (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007
Holder, Eric H. Jr. (District of Columbia)
FH-DC-0005-0006
Lincoln, Holly C. (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007
Machen, Ronald C (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007
Montag, Coty R (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007
Perez, Thomas E. (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007
Rosenbaum, Steven H. (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007
Seward, Jon M. (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007
Van Horn, Daniel F (District of Columbia)
FH-DC-0005-0002 | FH-DC-0005-0003 | FH-DC-0005-0006 | FH-DC-0005-0007
Defendant's Lawyers Longstreth, John (District of Columbia)
FH-DC-0005-9000
Williams, Bart H. (California)
FH-DC-0005-0006
Other Lawyers None on record

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The Clearinghouse has been generously supported by the National Science Foundation.