Filed Date: March 30, 2000
Closed Date: 2003
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On March 30, 2000, the United States Department of Justice filed a lawsuit in the U.S. District Court for the Eastern District of New York against a bank, in coordination with the United States Department of Housing and Urban Development and the Federal Trade Commission, alleging that it engaged in discriminatory lending practices.
The plaintiffs alleged that as a result of the defendant's discriminatory policies and practices, African-American female borrowers were charged higher mortgage broker fees than similarly situated white male borrowers. The plaintiffs also alleged that the defendant provided financial incentives to mortgage brokers to steer loan applicants to Delta and that the defendant approved loans without regard to the borrower's ability to repay.
The plaintiff filed a proposed consent order on April 10, 2000 that was signed by the court (Judge Sifton). Under the settlement agreement, the Defendant-bank is prohibited from lending engaging in any lending practices based on sex, race, or color. In addition, Delta has agreed to create a $7,250,000 remediation fund as well as an amelioration fund consisting of 525,000 unregistered shares of common stock to compensate borrowers impacted by the Defendant-bank's previous discriminatory measures.
This case was the first case for DOJ to litigate with combined allegations of fair lending and consumer protection.
Summary Authors
Megan Richardson (4/3/2014)
Go, Marilyn D. (New York)
Berrelez, Rolando (District of Columbia)
Chua, Michelle (District of Columbia)
Lee, Bill Lann (District of Columbia)
Lynch, Loretta (New York)
Go, Marilyn D. (New York)
Sifton, Charles Proctor (New York)
Berrelez, Rolando (District of Columbia)
Chua, Michelle (District of Columbia)
Lee, Bill Lann (District of Columbia)
Magagna, Joan A. (District of Columbia)
Markison, Kenneth (District of Columbia)
O'Brian, Valerie R. (District of Columbia)
Race, Peter S. (District of Columbia)
Reno, Janet (District of Columbia)
Last updated March 3, 2024, 3:08 a.m.
State / Territory: New York
Case Type(s):
Fair Housing/Lending/Insurance
Special Collection(s):
Key Dates
Filing Date: March 30, 2000
Closing Date: 2003
Case Ongoing: No
Plaintiffs
Plaintiff Description:
United States Department of Justice Civil Rights Division Section on Housing and Civil Enforcement
Plaintiff Type(s):
U.S. Dept of Justice plaintiff
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
Delta Funding Corporation, Delta Financial Corporation, Private Entity/Person
Defendant Type(s):
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
Amount Defendant Pays: $12,000,000.
Order Duration: 2000 - 2003
Content of Injunction:
Develop anti-discrimination policy
Provide antidiscrimination training
Issues
General:
Discrimination-area:
Discrimination-basis:
Race:
Affected Sex or Gender: