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Case Name United States v. Luther Burbank Savings FH-CA-0009
Docket / Court 2:12-cv-07809-JAK-FMO ( C.D. Cal. )
State/Territory California
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On September 12, 2012, the United States filed a complaint against Luther Burbank Savings in the U.S. District Court for the Central District of California. The U.S. sought declaratory, injunctive, and monetary relief for violations of the Fair Housing Act and the Equal Credit Opportunity Act (ECOA) ... read more >
On September 12, 2012, the United States filed a complaint against Luther Burbank Savings in the U.S. District Court for the Central District of California. The U.S. sought declaratory, injunctive, and monetary relief for violations of the Fair Housing Act and the Equal Credit Opportunity Act (ECOA). The U.S. also sought civil penalties available under the Fair Housing Act. Settlement negotiations preceded the filing of the complaint, and the U.S., represented by the Department of Justice's Civil Rights Division, filed a Proposed Consent Decree at the same time.

The complaint alleged that the defendant engaged in a pattern or practice of discrimination in its residential mortgage lending activities. From 2006 to 2010, Luther maintained a minimum loan amount policy of $400,000 for its single-family residential mortgage loan program. The U.S. alleged that this policy had a disparate impact on African-American and Hispanic borrowers. The period that Luther enforced this policy resulted in very few single-family residential mortgage loans in majority-minority census tracts compared to other prime lenders. Very few single-family residential mortgage loans to African-American and Hispanic borrowers also arose under the policy. The complaint alleged that Luther knew that low levels of lending to African Americans and Hispanics resulted from the policy. The Office of Thrift Supervision referred the case to the Department of Justice after identifying fair lending issues during an examination of the bank. Luther discontinued its $400,000 minimum loan amount policy in June 2011.

Judge John A. Kronstadt entered the Consent Order on October 12, 2012. Under the agreement, Luther was prohibited from establishing a similar minimum loan amount policy in the future and must provide fair lending training for its employees. The defendant was required to invest $1.1 million in a program to increase financing for mortgage loans made to qualified borrowers seeking loans in California of $400,000 or less. The order also required Luther to spend $450,000 in partnerships with organizations that provided credit and financial services to minorities, $300,000 to promote its products and services to all potential customers, and $150,000 on consumer education programs. The consent decree order called for three years of enforcing the agreed upon terms. The case is now closed.

Benjamin Clark - 10/18/2012
Asma Husain - 02/14/2016
Richa Bijlani - 11/19/2019


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Issues and Causes of Action
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Issues
Constitutional Clause
Commerce Power
Content of Injunction
Develop anti-discrimination policy
Monitoring
Provide antidiscrimination training
Reporting
Training
Defendant-type
Bank or credit provider
Discrimination-area
Lending
Discrimination-basis
National origin discrimination
Race discrimination
General
Disparate Impact
Housing
Pattern or Practice
Racial segregation
National Origin/Ethnicity
Hispanic
Plaintiff Type
U.S. Dept of Justice plaintiff
Race
Black
Causes of Action Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691
Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.
Defendant(s) Luther Burbank Savings
Plaintiff Description Department of Justice
Indexed Lawyer Organizations U.S. Dept. of Justice Civil Rights Division
Class action status sought No
Class action status granted No
Filed Pro Se No
Prevailing Party Plaintiff
Public Int. Lawyer Yes
Nature of Relief Injunction / Injunctive-like Settlement
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2012 - 2015
Filing Year 2012
Case Closing Year 2015
Case Ongoing No
Additional Resources
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  See this case at CourtListener.com (May provide additional documents and, for active cases, real-time alerts)
  The Origins of Fair Lending Litigation
Date: Dec. 4, 2008
By: Andrew Nash (Washington University in St. Louis Law Student)
[ Detail ] [ PDF ] [ External Link ]

Docket(s)
2:12−cv−07809 (C.D. Cal.)
FH-CA-0009-9000.pdf | Detail
Date: 10/12/2012
Source: PACER [Public Access to Court Electronic Records]
General Documents
Complaint
FH-CA-0009-0001.pdf | Detail
Date: 09/12/2012
Source: U.S. Dep't of Justice, Civil Rights Division, Housing and Civil Enforcement
[Proposed] Agreed Order (C.D. Cal.)
FH-CA-0009-0002.pdf | Detail
Date: 09/12/2012
Source: U.S. Dep't of Justice, Civil Rights Division, Housing and Civil Enforcement
[Press release]
FH-CA-0009-0003.pdf | Detail
Date: 09/12/2012
Source: U.S. Dep't of Justice, Civil Rights Division, Housing and Civil Enforcement
Agreed Order [ECF# 6] (C.D. Cal.)
FH-CA-0009-0004.pdf | Detail
Date: 10/12/2012
Source: PACER [Public Access to Court Electronic Records]
show all people docs
Judges Kronstadt, John Arnold (C.D. Cal.) show/hide docs
FH-CA-0009-0004 | FH-CA-0009-9000
Olguin, Fernando Manzano (C.D. Cal.) [Magistrate] show/hide docs
FH-CA-0009-9000
Plaintiff's Lawyers Birotte, Andre Jr. (California) show/hide docs
FH-CA-0009-0001 | FH-CA-0009-0002 | FH-CA-0009-0004
Holder, Eric H. Jr. (District of Columbia) show/hide docs
FH-CA-0009-0001 | FH-CA-0009-0002 | FH-CA-0009-0004
Montag, Coty R (District of Columbia) show/hide docs
FH-CA-0009-0001 | FH-CA-0009-0002 | FH-CA-0009-0004 | FH-CA-0009-9000
Murphy, Donna M. (District of Columbia) show/hide docs
FH-CA-0009-0001 | FH-CA-0009-0002 | FH-CA-0009-0004
Perez, Thomas E. (District of Columbia) show/hide docs
FH-CA-0009-0001 | FH-CA-0009-0002
Rosenbaum, Steven H. (District of Columbia) show/hide docs
FH-CA-0009-0001 | FH-CA-0009-0002 | FH-CA-0009-0004
Sneed, Sekret T (California) show/hide docs
FH-CA-0009-0001 | FH-CA-0009-0002 | FH-CA-0009-0004 | FH-CA-0009-9000
Weidman, Leon W. (California) show/hide docs
FH-CA-0009-0001 | FH-CA-0009-0002 | FH-CA-0009-0004

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