Filed Date: Sept. 5, 1996
Closed Date: 1999
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On September 5, 1996, the U.S. Department of Justice filed a lawsuit under 42 U.S.C. §§ 3601-3619 (Fair Housing Act) and 15 U.S.C. § 1691 (Equal Credit Opportunity Act) against the Long Beach Mortgage Company in the United States District Court for the Central District of California. The Department of Justice sought declaratory and injunctive relief and monetary damages on behalf of African-Americans, Latinos, women, and persons over 55 who had allegedly been victims of the defendant's discriminatory policies. Specifically, the DOJ alleged that Long Beach, a sub-prime mortgage lender, had failed properly instructed its employees regarding their obligation to treat prospective customers without regard to race, national origin, gender or age in compliance with fair lending laws. The DOJ further alleged that the company used a number of discriminatory practices and tactics that resulted in a pattern of higher fees and costs for loan applicants of minority groups.
Contemporaneously with filing the complaint, the parties submitted a proposed Settlement Agreement to the Court for approval. The Agreement established objective guidelines for establishing the risk of future mortgage applicants, and set up a training program for Long Beach employees. The Agreement also created a monitoring program to help Long Beach ensure that no further pattern of discrimination would emerge in its practice, and established a record keeping and reporting program that included semi-annual reports to the DOJ. Long Beach further agreed to establish a fund of $3 million to reimburse its borrowers previously given unfair terms, and to donate $1 million to consumer education programs. The District Court (Judge Dickran Tevrizian) approved the Settlement Agreement on September 5, 1996.
The agreement ended in 1999 without any further litigation. The case is now closed.
Summary Authors
Nick Niles (7/12/2007)
Cass, Jennifer (District of Columbia)
Dowell, Gavin C. (District of Columbia)
Hancock, Paul F. (District of Columbia)
Johnston, Pamela L. (California)
Manella, Nora Margaret (California)
Tevrizian, Dickran M. Jr. (California)
Woehrle, Carla M. (California)
Cass, Jennifer (District of Columbia)
Dowell, Gavin C. (District of Columbia)
Hancock, Paul F. (District of Columbia)
Johnston, Pamela L. (California)
Manella, Nora Margaret (California)
Patrick, Deval L. (District of Columbia)
Reno, Janet (District of Columbia)
Last updated Feb. 16, 2024, 3:01 a.m.
State / Territory: California
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: Sept. 5, 1996
Closing Date: 1999
Case Ongoing: No
Plaintiffs
Plaintiff Description:
The United States, on behalf of African American, Hispanic, female and/or elderly customers who took out loans from Long Beach between 01/1991 and 06/1994.
Attorney Organizations:
U.S. Dept. of Justice Civil Rights Division
Public Interest Lawyer: Yes
Filed Pro Se: No
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
Long Beach Mortgage Company, Private Entity/Person
Case Details
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
Available Documents:
Injunctive (or Injunctive-like) Relief
Outcome
Prevailing Party: Plaintiff
Nature of Relief:
Injunction / Injunctive-like Settlement
Source of Relief:
Form of Settlement:
Court Approved Settlement or Consent Decree
Order Duration: 1996 - 1999
Issues
Discrimination-area:
Discrimination-basis:
Race:
National Origin/Ethnicity: