The Department of Justice filed suit in the U.S. District Court for the Northern District of Illinois on April 16, 1976, against four Defendants the American Institute of Real Estate Appraisers, the Society of Real Estate Appraisers, the United States League of Savings Associations, and the Mortgage Bankers Association of America seeking injunctive and declaratory relief for alleged violations of the Fair Housing Act, 42 U.S.C. 3601-3619. The DOJ alleged that the four Defendant-organizations had engaged in unlawful discriminatory practices by promulgating standards which had caused appraisers and lenders to treat race and national origin as negative factors in determining the value of dwellings and in evaluating the soundness of home loans, and by failing to take adequate steps to correct the continuing effect of past discrimination and ensure non-discrimination by appraisers and lenders whose practices are subject to the influence or authority of the four organizations. The parties eventually entered into a settlement agreement, which was approved by U.S. District Court Judge George N. Leighton. United States v. American Institute of Real Estate Appraisers, 442 F. Supp. 1072 (N.D. Ill. 1977).

After 72 members of the Defendant-organizations filed a motion to intervene to block implementation of the suit, Judge Leighton allowed one organization member to intervene permissively pursuant to Fed. R. Civ. Proc. 24(b) but nonetheless approved the settlement agreement. United States v. American Institute of Real Estate Appraisers, 442 F. Supp. 1072 (N.D. Ill. 1977). The Seventh Circuit rejected the intervener's challenge to the settlement agreement on December 21, 1978. United States v. American Institute of Real Estate Appraisers, 590 F.2d 242 (7th Cir. 1978).

Andrew Nash - 06/02/2008


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