University of Michigan Law School
Civil Rights Litigation Clearinghouse
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Case Name Consumer Financial Protection Bureau and United States v. National City Bank FH-PA-0005
Docket / Court 2:13-cv-01817-CB ( W.D. Pa. )
State/Territory Pennsylvania
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization U.S. Dept. of Justice Civil Rights Division
Case Summary
On December 23, 2013, the Consumer Financial Protection Bureau and the United States Department of Justice, on behalf of approximately 76,000 African-American and Hispanic residential mortgage borrowers, filed a lawsuit in the U.S. District Court for the Western District of Pennsylvania against ... read more >
On December 23, 2013, the Consumer Financial Protection Bureau and the United States Department of Justice, on behalf of approximately 76,000 African-American and Hispanic residential mortgage borrowers, filed a lawsuit in the U.S. District Court for the Western District of Pennsylvania against National City Bank, alleging that it engaged in discriminatory lending practices. In their complaint, the plaintiffs alleged that as a result of the defendant's policies and practices, African-American and Hispanic borrowers unfairly paid higher prices for their home mortgage loans than non-Hispanic White borrowers. The complaint asked the court for injunctive relief, rescission or reformation of contracts, and monetary damages.

Specifically, the plaintiffs alleged that the defendant allowed its mortgage brokers to set wholesale loan prices unrelated to credit risk characteristics and loan terms; did not require mortgage brokers to justify or document the reasons for the amount of broker fees and prices set above the par rate; failed to monitor for disparities based on race or national original because of its policies and practices; and created a financial incentive for mortgage brokers to charge higher fees and interest rates.

The plaintiff filed a proposed consent order with the complaint that was entered by the Court (Judge Cathy Bissoon) on January 9, 2014. The Consent Order addressed National City Bank's practices between 2002 and 2008. Subsequently, PNC Bank acquired the defendant, and so the Consent Order is between PNC Bank and the plaintiffs. Per the order, the bank was to establish an interest-bearing settlement fund of $35 million "to compensate affected borrowers for monetary damages, equitable relief, and other damages that they may have suffered as a result of National City Bank's alleged violations of the ECOA and the FHA." The order also provided a process for determining who the settlement fund recipients should be and for disbursement. The order was to terminate three months after final disbursement.

On Jan. 6, 2017, the court approved disbursement of the last of the settlement fund. The case is now closed.

Megan Richardson - 02/24/2014
Virginia Weeks - 02/22/2018


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Issues and Causes of Action
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Issues
Defendant-type
Bank or credit provider
Discrimination-area
Housing Sales/Rental
Lending
Discrimination-basis
National origin discrimination
Race discrimination
General
Housing
Predatory lending
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) National City Bank
Plaintiff Description The Consumer Financial Protection Bureau and the Department of Justice Civil Rights Division.
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 Damages
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2013 - 2014
Filing Year 2013
Case Closing Year 2017
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)
2:13-cv-01817-CB (W.D. Pa.)
FH-PA-0005-9000.pdf | Detail
Date: 01/06/2017
Source: PACER [Public Access to Court Electronic Records]
General Documents
Complaint [ECF# 1]
FH-PA-0005-0001.pdf | Detail
Date: 12/23/2013
Source: PACER [Public Access to Court Electronic Records]
Consent Order [ECF# 3] (W.D. Pa.)
FH-PA-0005-0002.pdf | Detail
Date: 12/23/2013
Source: PACER [Public Access to Court Electronic Records]
Judges Bissoon, Cathy (W.D. Pa.)
FH-PA-0005-9000
Plaintiff's Lawyers Alexis, Anthony (District of Columbia)
FH-PA-0005-0001
Auchterlonie, Sarah (District of Columbia)
FH-PA-0005-0002
Dettelbach, Steven M (District of Columbia)
FH-PA-0005-0001
Ficklin, Patrice A. (District of Columbia)
FH-PA-0005-0001
Gelfond, Rebecca J.K. (District of Columbia)
FH-PA-0005-0001
Hickton, David J. (Pennsylvania)
FH-PA-0005-0001
Holder, Eric H. Jr. (District of Columbia)
FH-PA-0005-0001
Jung, Je Yon (District of Columbia)
FH-PA-0005-0001 | FH-PA-0005-9000
Morris, Lucy (District of Columbia)
FH-PA-0005-0001
O'Beirne, Patricia (District of Columbia)
FH-PA-0005-0001 | FH-PA-0005-9000
Posner, Michael (District of Columbia)
FH-PA-0005-0001
Rosenbaum, Steven H. (District of Columbia)
FH-PA-0005-0001
Samuels, Jocelyn (District of Columbia)
FH-PA-0005-0001
Seward, Jon M. (District of Columbia)
FH-PA-0005-0001
Defendant's Lawyers Allen, Thomas L. (Pennsylvania)
FH-PA-0005-9000
Other Lawyers Graden, Tyler S. (Pennsylvania)
FH-PA-0005-9000

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