On March 4, 2010, the United States of America filed this lawsuit under the Fair Housing and Equal Credit Opportunity Acts against AIG Federal Savings Bank in the United States District Court, District of Delaware. The plaintiff, represented by attorneys from the U.S. Department of Justice and the ...
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On March 4, 2010, the United States of America filed this lawsuit under the Fair Housing and Equal Credit Opportunity Acts against AIG Federal Savings Bank in the United States District Court, District of Delaware. The plaintiff, represented by attorneys from the U.S. Department of Justice and the U.S. Attorney's office asked the court for declaratory, injunctive, and monetary relief, claiming that AlG had engaged in a pattern or practice of discrimination on the basis of race. Specifically, the U.S. claimed that from July 2003 to May 2006, black borrowers nationwide were charged broker fees 20 basis points higher, on average, than the broker fees charged to white borrowers.
On March 19, 2010, the parties entered into a consent decree in which the bank agreed to: 1) refrain from engaging in any act or practice in wholesale home mortgage lending that discriminates on the basis of race or color; 2) maintain during the period of the order annual fair lending training; 3) develop and implement specific, nonracial standards for the assessment of direct broker fees on residential real estate-related loans; 4) post and prominently display in each location where loan applications are received by the lender a notice of nondiscrimination; 5) require brokers to make certain disclosures to applicants; 6) participate in a monitoring program to ensure compliance with the provisions of the consent decree; 7) provide a minimum of $1 million to certain organizations to provide credit counseling, financial literacy; and other related educational programs to African-American borrowers; 8) provide employees with equal credit opportunity training; and 9) pay $6.1 million in damages to those affected by AIG's discriminatory lending practices.
On July 7, 2011, the Court (Judge Leonard P. Stark) entered an order for distribution of the funds remaining in the settlement fund ($1,268,372.92) among the National Urban League, Operation HOPE and the American Financial Services Association Education Foundation.Gregory Pitt - 07/30/2012
Asma Husain - 02/14/2016