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Civil Rights Litigation Clearinghouse
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Case Name United States v. First United Security Bank FH-AL-0007
Docket / Court 1:09-cv-00644 ( S.D. Ala. )
State/Territory Alabama
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On September 30, 2009, the United States Department of Justice filed a lawsuit in the U.S. District Court Southern District of Alabama under the Fair Housing Act and the Equal Credit Opportunity Act against First United Security Bank. The Department of Justice claimed that the Bank engaged in a ... read more >
On September 30, 2009, the United States Department of Justice filed a lawsuit in the U.S. District Court Southern District of Alabama under the Fair Housing Act and the Equal Credit Opportunity Act against First United Security Bank. The Department of Justice claimed that the Bank engaged in a pattern or practice of home-mortgage lending discrimination against black applicants It asked the court to: 1) declare that the Bank's practices violated the Fair Housing Act and the Equal Credit Opportunity Act; 2) enjoin the Bank from continuing the discriminatory practice; 3) award monetary damages to all victims of the Bank's allegedly discriminatory practices; and 4) asses a civil penalty against the Bank. Specifically, the Department of Justice claimed that the Federal Deposit Insurance Corporation (FDIC) had reason to believe that in 2004 the Bank discriminated against black applicants on the basis of race by setting higher interest rates for first-lien refinance loans and by failing to meet the lending needs of majority African-American tracts in west central Alabama on an equal basis with majority white tracts.

The case was assigned to Chief Judge William H. Steele. On November 18, 2009, he entered an agreed order for resolution. This agreement stated that the Bank had implemented and would continue to implement policies and procedures that would ensure the pricing of its residential loans were not discriminatory. The bank would also compensate some African-American borrowers under a standard pricing matrix and opening branches in majority African-American areas that it serves. The bank also agreed to asses the credit needs of consumers in majority black areas and engage in consumer education.

This agreement required annual reports by the bank, and was scheduled to terminate in 2014. However, on May 6, 2014 the parties filed a joint motion asking the court to extend the agreement because the bank had been unable to satisfy a provision that required a $500,000 investment in a special fund for lending to minority communities. The submission did not explain why the bank had been unable to make this investment. The agreement was extended for an additional four years or until the bank satisfied the investment requirement, and was approved by Judge Steele on May 7, 2014.

On April 27, 2016, the parties filed a joint status report stating that all provisions of the agreement had been met. Judge Steele dismissed the case the same day.

Megan Dolan - 05/28/2014
Nathaniel Flack - 01/20/2019


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Issues and Causes of Action
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Issues
Content of Injunction
Comply with advertising/recruiting requirements
Develop anti-discrimination policy
Discrimination Prohibition
Hire
Provide antidiscrimination training
Recordkeeping
Reporting
Defendant-type
Bank or credit provider
Discrimination-area
Housing Sales/Rental
Lending
Discrimination-basis
Race discrimination
General
Disparate Treatment
Funding
Housing
Pattern or Practice
Predatory lending
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) First United Security Bank
Plaintiff Description The United States Department of Justice, vindicating the rights of African-American loan applicants.
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 2009 - 2016
Filing Year 2009
Case Closing Year 2016
Case Ongoing No
Additional Resources
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  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)
1:09−cv−00644 (S.D. Ala.)
FH-AL-0007-9000.pdf | Detail
Date: 04/27/2016
Source: PACER [Public Access to Court Electronic Records]
General Documents
Complaint [ECF# 1]
FH-AL-0007-0001.pdf | Detail
Date: 09/30/2009
Source: PACER [Public Access to Court Electronic Records]
Agreed Order for Resolution [ECF# 5] (S.D. Ala.)
FH-AL-0007-0002.pdf | Detail
Date: 11/18/2009
Source: PACER [Public Access to Court Electronic Records]
Justice Department Reaches Settlement with First United Security Bank of Thomasville, Alabama, Regarding Alleged Discrimination in Lending
FH-AL-0007-0003.pdf | Detail
Date: 11/30/2009
Joint Status Report [ECF# 10]
FH-AL-0007-0006.pdf | Detail
Date: 03/28/2014
Source: PACER [Public Access to Court Electronic Records]
Joint Motion to Amend Order of District Judge 5 Order, by United States of America. (Attachments: # 1 Text of Proposed Order proposed amended order, # 2 memo in support of motion) [ECF# 12]
FH-AL-0007-0004.pdf | Detail
Date: 05/06/2014
Source: PACER [Public Access to Court Electronic Records]
Amended Agreed Order for Resolution [ECF# 14] (S.D. Ala.)
FH-AL-0007-0005.pdf | Detail
Date: 05/07/2014
Source: PACER [Public Access to Court Electronic Records]
Joint Status Report [ECF# 17]
FH-AL-0007-0007.pdf | Detail
Date: 04/09/2015
Source: PACER [Public Access to Court Electronic Records]
Joint Status Report [ECF# 19]
FH-AL-0007-0008.pdf | Detail
Date: 12/07/2015
Source: PACER [Public Access to Court Electronic Records]
Joint Status Report [ECF# 21]
FH-AL-0007-0009.pdf | Detail
Date: 04/27/2016
Source: PACER [Public Access to Court Electronic Records]
Judges Milling, Bert W. Jr. (S.D. Ala.) [Magistrate]
FH-AL-0007-0005 | FH-AL-0007-9000
Steele, William H. (S.D. Ala.)
FH-AL-0007-0002 | FH-AL-0007-9000
Plaintiff's Lawyers Campos, Marta (District of Columbia)
FH-AL-0007-0001 | FH-AL-0007-0002 | FH-AL-0007-0004 | FH-AL-0007-0006 | FH-AL-0007-0007 | FH-AL-0007-0008 | FH-AL-0007-0009 | FH-AL-0007-9000
Holder, Eric H. Jr. (District of Columbia)
FH-AL-0007-0001
King, Loretta (District of Columbia)
FH-AL-0007-0001 | FH-AL-0007-0002
Moore, Gary Alan (Alabama)
FH-AL-0007-0001 | FH-AL-0007-0002 | FH-AL-0007-9000
Murphy, Donna M. (District of Columbia)
FH-AL-0007-0001 | FH-AL-0007-0002
Rosenbaum, Steven H. (District of Columbia)
FH-AL-0007-0001 | FH-AL-0007-0002 | FH-AL-0007-0006 | FH-AL-0007-0007 | FH-AL-0007-0008 | FH-AL-0007-0009
Seidel, Eugene A. (Alabama)
FH-AL-0007-0001 | FH-AL-0007-0002
Wiseman, Holly Lee (District of Columbia)
FH-AL-0007-0006 | FH-AL-0007-0007 | FH-AL-0007-0008 | FH-AL-0007-0009 | FH-AL-0007-9000
Defendant's Lawyers Brown, Stephen E (Alabama)
FH-AL-0007-0002 | FH-AL-0007-0006 | FH-AL-0007-0007 | FH-AL-0007-0008 | FH-AL-0007-0009 | FH-AL-0007-9000
Dulin, John P. Jr. (Alabama)
FH-AL-0007-0002 | FH-AL-0007-0004 | FH-AL-0007-0006 | FH-AL-0007-0007 | FH-AL-0007-0008 | FH-AL-0007-0009 | FH-AL-0007-9000
Glancz, Ronald R. (District of Columbia)
FH-AL-0007-0002 | FH-AL-0007-9000
Smith, David Michael (Alabama)
FH-AL-0007-0004 | FH-AL-0007-0006 | FH-AL-0007-0007 | FH-AL-0007-0008 | FH-AL-0007-0009 | FH-AL-0007-9000

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