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Case Name Ramirez v. Greenpoint Mortgage Funding, Inc. FH-CA-0011
Docket / Court 3:08-cv-00369 ( N.D. Cal. )
State/Territory California
Case Type(s) Fair Housing/Lending/Insurance
Case Summary
On January 18, 2008, minority borrowers filed a class action complaint in the U.S. District Court for the Northern District of California against Greenpoint Mortage Funding, Inc. ("Greenpoint"), under the Equal Credit Opportunity Act("ECOA"), the Fair Housing Act ("FHA"), 42 U.S.C. § 1981, and 42 ... read more >
On January 18, 2008, minority borrowers filed a class action complaint in the U.S. District Court for the Northern District of California against Greenpoint Mortage Funding, Inc. ("Greenpoint"), under the Equal Credit Opportunity Act("ECOA"), the Fair Housing Act ("FHA"), 42 U.S.C. § 1981, and 42 U.S.C. § 1982. The plaintiffs sought class certification, injunctive, equitable, and monetary relief, alleging Greenpoint's practices had a disparate impact on minority applicants for home mortgage loans. Specifically, they alleged that Greenpoint's credit pricing policy, whereby subjective and discretionary financing charges and interest mark-ups were authorized, led to a higher likelihood of discretionary points, fees and interest rate mark-ups to minority applicants and increased the average cost of mortgage loans to minorities. Minorities were defined as black and Hispanic applicants.

The case then spent some time in pre-trial motions and alternative dispute resolution. On March 13, 2008, the plaintiffs filed an amended complaint. The parties continued settlement negotiations. On December 4, 2009, the plaintiffs filed a motion for preliminary approval of class action settlement. On December 16, 2009, the Court (Judge Thelton E. Henderson) issued an order expressing several concerns about the proposed settlement, such as low amount of payment ($15) to each class member, and the amount of attorney's fees.

On March 15, 2010, the plaintiffs filed a motion for class certification, which the Court granted. The class consisted of all African-American or Hispanic persons throughout the United States to whom Greenpoint originated a residential-secured loan in GreenPoint's wholesale lending channel between January 1, 2004 and January 1, 2008. The defendant appealed.

On November 3, 2010, the plaintiffs filed a motion for preliminary approval of the settlement agreement, which the Court granted on December 10, 2010. Under the agreement, the defendants agreed not to appeal class certification, and as such, the same class as above was included. The defendant agreed to pay $14,750,000.00 to the class, distributed among class representatives, pro rata among class members, and for attorney's fees. The defendant agreed to submit quarterly reports to the plaintiff's class counsel until the payments were fully made. $150,000.00 out of the payment went to a non-profit that would provide foreclosure counseling to class members. The defendant warranted that it was not originating any new wholesale residential real estate secured loans. If it did so, it would notify the plaintiffs first.

In accordance with the proposed settlement, the plaintiffs filed a second amended class action complaint on December 14, 2010. The plaintiffs stated the same facts, alleging pattern or practice of discrimination by Greepoint, and seeking injunctive, declaratory and monetary relief.

Following a fairness hearing, the Court issued a final approval order on April 12, 2011. It approved the settlement class (same as above). The attorney's fees were in the amount of $3,687,500.00, plus actual costs of $425,412.04. The Court retained jurisdiction over the enforcement and administration of the agreement.

Zhandos Kuderin - 07/23/2014


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Issues and Causes of Action
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Issues
Content of Injunction
Reporting
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
Race discrimination
General
Disparate Impact
Housing
Pattern or Practice
Predatory lending
National Origin/Ethnicity
Hispanic
Plaintiff Type
Private 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
42 U.S.C. § 1981
42 U.S.C. § 1982
Defendant(s) Greenpoint Mortage Funding Inc.
Plaintiff Description Black and Hispanic applicants for home mortage loans.
Indexed Lawyer Organizations None on record
Class action status sought Yes
Class action status granted Yes
Prevailing Party Plaintiff
Public Int. Lawyer No
Nature of Relief Attorneys fees
Damages
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2011 - 2011
Case Closing Year 2011
Case Ongoing No
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)
3:08-cv-369 (N.D. Cal.) 07/13/2011
FH-CA-0011-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 01/12/2008
FH-CA-0011-0007.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order Re: Hearing on Motion for Preliminary Approval of Class Settlement 12/16/2009 (N.D. Cal.)
FH-CA-0011-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order Granting Plaintiffs' Motion for Class Certification 07/20/2010 (N.D. Cal.)
FH-CA-0011-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Stipulation and Agreement on Settlement [Proposed] 10/29/2010
FH-CA-0011-0008.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order Granting Motion for Preliminary Approval of Class Action Settlement 12/10/2010 (N.D. Cal.)
FH-CA-0011-0004.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Second Amended Class Action Complaint 12/14/2010
FH-CA-0011-0003.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Final Approval Order 04/12/2011 (N.D. Cal.)
FH-CA-0011-0005.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 07/01/2011 (N.D. Cal.)
FH-CA-0011-0006.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Brazil, Wayne D. (N.D. Cal.) [Magistrate]
FH-CA-0011-9000
Henderson, Thelton Eugene (N.D. Cal.)
FH-CA-0011-0001 | FH-CA-0011-0002 | FH-CA-0011-0004 | FH-CA-0011-0005 | FH-CA-0011-9000
Monitors/Masters None on record
Plaintiff's Lawyers Becker, Nance F. (California)
FH-CA-0011-0003 | FH-CA-0011-9000
Chavez, Mark A. (California)
FH-CA-0011-0003 | FH-CA-0011-0008 | FH-CA-0011-9000
Ciolko, Edward W. (Pennsylvania)
FH-CA-0011-0003 | FH-CA-0011-9000
Delbaum, Charles M. (Massachusetts)
FH-CA-0011-0003 | FH-CA-0011-0007 | FH-CA-0011-9000
Fanning, Lori A. (Illinois)
FH-CA-0011-0007 | FH-CA-0011-9000
Fialco, Lisa (California)
FH-CA-0011-9000
Friedman, Andrew S. (Arizona)
FH-CA-0011-0003 | FH-CA-0011-9000
Gildor, Dan (California)
FH-CA-0011-0003 | FH-CA-0011-9000
Harrison, Wendy J. (Arizona)
FH-CA-0011-0003 | FH-CA-0011-0008 | FH-CA-0011-9000
Hurst, Leslie E. (California)
FH-CA-0011-9000
Kavanagh, Shennan Alexandra (Massachusetts)
FH-CA-0011-0003 | FH-CA-0011-9000
Klein, Gary E. (Massachusetts)
FH-CA-0011-0003 | FH-CA-0011-0008 | FH-CA-0011-9000
Meltzer, Joseph H. (Pennsylvania)
FH-CA-0011-0003 | FH-CA-0011-9000
Miller, Marvin A. (Illinois)
FH-CA-0011-0003 | FH-CA-0011-0007 | FH-CA-0011-0008 | FH-CA-0011-9000
Moffa, Donna Siegel (Pennsylvania)
FH-CA-0011-0003 | FH-CA-0011-9000
Muhic, Peter A. (Pennsylvania)
FH-CA-0011-0003 | FH-CA-0011-9000
Pintar, Theodore J. (California)
FH-CA-0011-0003 | FH-CA-0011-9000
Rossman, Stuart T. (Massachusetts)
FH-CA-0011-0003 | FH-CA-0011-0007 | FH-CA-0011-9000
Sobol, Thomas M. (Massachusetts)
FH-CA-0011-0007 | FH-CA-0011-9000
Stoia, John J. (California)
FH-CA-0011-0003 | FH-CA-0011-9000
Swanson, Edward W. (California)
FH-CA-0011-9000
Weeden, Joseph A. (Pennsylvania)
FH-CA-0011-0003 | FH-CA-0011-9000
Defendant's Lawyers Bass, Joren Surya (California)
FH-CA-0011-9000
Forbes, Colin D. (District of Columbia)
FH-CA-0011-9000
Foster, David W. (District of Columbia)
FH-CA-0011-9000
Kasmar, Caitlin Marie (District of Columbia)
FH-CA-0011-9000
Kennedy, Raoul Dion (California)
FH-CA-0011-9000
Raines, Amanda M. (District of Columbia)
FH-CA-0011-9000
Raman, Anand S. (District of Columbia)
FH-CA-0011-0008 | FH-CA-0011-9000
Sandler, Andrew L. (District of Columbia)
FH-CA-0011-9000
Other Lawyers None on record

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