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Civil Rights Litigation Clearinghouse
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Case Name United States v. Chevy Chase Bank, F.S.B. FH-VA-0005
Docket / Court 1:13-cv-1214-AJT-JFA ( E.D. Va. )
State/Territory Virginia
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On September 30, 2013, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of Virginia on behalf of 3,100 African American and Hispanic residential mortgage borrowers against a bank, alleging that it engaged in discriminatory lending ... read more >
On September 30, 2013, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of Virginia on behalf of 3,100 African American and Hispanic residential mortgage borrowers against a bank, alleging that it engaged in discriminatory lending practices. The Office of the Comptroller of the Currency referred this case to the plaintiff after completing investigatory action because a bank purchased the defendant.

The plaintiffs alleged that, as a result of the defendant's policies and practices, African-American and Hispanic borrowers unfairly paid higher prices for their residential mortgage loans than non-Hispanic White borrowers. The complaint asked the court for a declaratory judgment, injunctive relief and monetary damages.

Specifically, the plaintiffs alleged that the defendant set wholesale loan prices unrelated to credit risk characteristics and loan terms. The defendant did not justify or document the reasons for the amount of broker fees and prices set above the par rate; failed to monitor for disparities based on race or national original because of its policies and practices; and created a financial incentive for mortgage brokers to charge higher fees and interest rates for loan applications submitted to the lender.

The plaintiff filed a proposed consent order on September 30, 2013, that was entered by the Court (District Judge Anthony J. Trenga) on October 3, 2013. Under the consent order, the defendant agreed to compensate certain African-American and Hispanic residential mortgage borrowers through a settlement fund.

Megan Richardson - 02/24/2014


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Issues and Causes of Action
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Issues
Content of Injunction
Develop anti-discrimination policy
Recordkeeping
Reporting
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
Race discrimination
General
Housing
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) Chevy Chase Bank
Plaintiff Description Plaintiff is the United States Attorney's Office for the Eastern District of Virginia and the United States Department of Justice Civil Rights Division's 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 2013 - 2014
Case Closing Year 2013
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)
1:13-cv-1214-AJT-JFA (E.D. Va.) 10/03/2013
FH-VA-0005-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 09/30/2013
FH-VA-0005-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Settlement Agreement and Order 10/02/2013
FH-VA-0005-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Anderson, John F. (E.D. Va.) [Magistrate]
FH-VA-0005-9000
Trenga, Anthony John (E.D. Va.)
FH-VA-0005-0001 | FH-VA-0005-9000
Monitors/Masters None on record
Plaintiff's Lawyers Boente, Dana J. (Virginia)
FH-VA-0005-0001 | FH-VA-0005-0002
Carlson, Lucy G. (District of Columbia)
FH-VA-0005-0001 | FH-VA-0005-0002
Gordon, Steven Eric (Virginia)
FH-VA-0005-0001 | FH-VA-0005-0002 | FH-VA-0005-9000
Holder, Eric H. Jr. (District of Columbia)
FH-VA-0005-0001 | FH-VA-0005-0002
Montag, Coty R (District of Columbia)
FH-VA-0005-0001 | FH-VA-0005-0002
Rosenbaum, Steven H. (District of Columbia)
FH-VA-0005-0001 | FH-VA-0005-0002
Samuels, Jocelyn (District of Columbia)
FH-VA-0005-0001 | FH-VA-0005-0002
Defendant's Lawyers Barloon, Joseph L. (District of Columbia)
FH-VA-0005-0001
Brown, Austin K. (District of Columbia)
FH-VA-0005-0001
Carney, David Emmett (District of Columbia)
FH-VA-0005-9000
Raman, Anand S. (District of Columbia)
FH-VA-0005-0001 | FH-VA-0005-9000
Other Lawyers None on record

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