The Department of Justice filed suit in the U.S. District Court for the Northern District of Ohio on October 18, 1995, alleging violations of the Fair Housing Act, 42 U.S.C. 3601-3619, and the Equal Credit Opportunity Act, 15 U.S.C. 1691-1691f. The DOJ alleged that Defendant-mortgage company charged black borrowers ten times the loan origination fees that it charged white borrowers in Cleveland over a two-year period.

The same day the Complaint was filed, the parties submitted a settlement agreement to the court. Under the three-year period of the settlement agreement, the Defendant-mortgage company agreed to abide by nondiscrimination laws, create a race-neutral policy for loan origination fees, and establish a monitoring program. The Defendant also agreed to set aside $420,000 to compensate 117 African-American customers who had been overcharged.

Andrew Nash - 06/02/2008


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