University of Michigan Law School
Civil Rights Litigation Clearinghouse
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Case Name United States v. Delta Funding Corp. FH-NY-0017
Docket / Court 1:00-cv-01872 ( 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
On March 30, 2000, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of New York against a bank, in coordination with the United States Department of Housing and Urban Development and the Federal Trade Commission, alleging that it engaged ... read more >
On March 30, 2000, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of New York against a bank, in coordination with the United States Department of Housing and Urban Development and the Federal Trade Commission, alleging that it engaged in discriminatory lending practices.

The plaintiffs alleged that as a result of the defendant's discriminatory policies and practices, African-American female borrowers were charged higher mortgage broker fees than similarly situated white male borrowers. The plaintiffs also alleged that the defendant provided financial incentives to mortgage brokers to steer loan applicants to Delta and that the defendant approved loans without regard to the borrower's ability to repay.

The plaintiff filed a proposed consent order on April 10, 2000 that was signed by the court (Judge Sifton). Under the settlement agreement, the Defendant-bank is prohibited from lending engaging in any lending practices based on sex, race, or color. In addition, Delta has agreed to create a $7,250,000 remediation fund as well as an amelioration fund consisting of 525,000 unregistered shares of common stock to compensate borrowers impacted by the Defendant-bank's previous discriminatory measures.

This case was the first case for DOJ to litigate with combined allegations of fair lending and consumer protection.

Megan Richardson - 04/03/2014


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Issues and Causes of Action
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Issues
Affected Gender
Female
Content of Injunction
Develop anti-discrimination policy
Monitoring
Provide antidiscrimination training
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
Gender identity
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) Delta Funding Corporation, Delta Financial Corporation
Plaintiff Description United States 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 Court Approved Settlement or Consent Decree
Order Duration 2000 - 2003
Case Closing Year 2000
Case Ongoing No
Docket(s)
1:00−cv−01872 (E.D.N.Y.) 04/10/2000
FH-NY-0017-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 03/30/2000
FH-NY-0017-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Delta Funding Corporation Settle US Charges on Fair Lending and Consumer Law 03/30/2000
FH-NY-0017-0003.pdf | Detail
Settlement Agreement and Order 04/05/2000
FH-NY-0017-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Go, Marilyn D. (E.D.N.Y.) [Magistrate]
FH-NY-0017-9000
Sifton, Charles Proctor (E.D.N.Y.)
FH-NY-0017-9000
Monitors/Masters None on record
Plaintiff's Lawyers Berrelez, Rolando (District of Columbia)
FH-NY-0017-0001
Chua, Michelle (District of Columbia)
FH-NY-0017-0001
Lee, Bill Lann (District of Columbia)
FH-NY-0017-0001
Lynch, Loretta (New York)
FH-NY-0017-0001
Magagna, Joan A. (District of Columbia)
FH-NY-0017-0001
Markison, Kenneth (District of Columbia)
FH-NY-0017-0001
O'Brian, Valerie R. (District of Columbia)
FH-NY-0017-0001
Race, Peter S. (District of Columbia)
FH-NY-0017-0001
Reno, Janet (District of Columbia)
FH-NY-0017-0001
Ross, Alexander C. (District of Columbia)
FH-NY-0017-0001
Tepper, Marla (New York)
FH-NY-0017-0001 | FH-NY-0017-9000
Valentine, Debra A. (District of Columbia)
FH-NY-0017-0001
Defendant's Lawyers None on record
Other Lawyers None on record

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