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Case Name Washington v. U.S. Department of Housing and Urban Development FH-NY-0026
Docket / Court 1:16-cv-03948-CBA-SMG ( E.D.N.Y. )
State/Territory New York
Case Type(s) Fair Housing/Lending/Insurance
Case Summary
On July 15, 2016, four African-American New York City homeowners filed this class action lawsuit in the United States District Court for the Eastern District of New York. The plaintiffs sued the United States Department of Housing and Development (“HUD”) and Caliber Home Loans, Inc. under the ... read more >
On July 15, 2016, four African-American New York City homeowners filed this class action lawsuit in the United States District Court for the Eastern District of New York. The plaintiffs sued the United States Department of Housing and Development (“HUD”) and Caliber Home Loans, Inc. under the Fair Housing Act, 42 U.S.C. § 3601 et seq., the Fair Debt Collection Practices Act, 15 U.S.C § 1692 et seq., and New York state law. They claimed HUD’s Note Sale program violated homeowner participants’ Fifth Amendment Due Process rights and had a disparate impact on both African-American homeowners and predominately African-American neighborhoods in New York City. The plaintiffs, represented by Mobilization for Justice and private counsel, sought declaratory and injunctive relief as well as damages.

HUD’s Federal Housing Administration’s (“FHA”) mortgage program was designed to support homeownership for low- and moderate-income Americans, providing benefits to help ensure that homeowners can maintain homeownership. Participants pay to receive these benefits. Beginning in 2010, HUD began selling delinquent FHA-insured mortgages to private investors without notice to the homeowners, who were then removed from the FHA mortgage program without notice. Plaintiffs claim that these sales happened disproportionately in predominately African-American neighborhoods. They claim the private investors, such as defendant Caliber Home Loans, then offered fewer protections to homeowners, and even pushed them into predatory mortgage modifications. This led to higher foreclosure rates for these participants, adversely impacting African Americans and destabilizing African-American neighborhoods in New York City.

On December 9, 2016, the case was reassigned from Judge Carol Bagley Amon to Judge Eric N. Vitaliano. On July 12, 2017, the defendants filed a motion to dismiss. As of February 2, 2018, the case is ongoing.

Sarah McDonald - 02/03/2018


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Issues and Causes of Action
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Issues
Constitutional Clause
Due Process
Defendant-type
Insurer
Discrimination-area
Lending
Discrimination-basis
Race discrimination
General
Disparate Impact
Housing
Housing assistance
Pattern or Practice
Predatory lending
Plaintiff Type
Private Plaintiff
Race
Black
Causes of Action Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.
State law
Defendant(s) Caliber Home Loans, Inc.
United States Department of Housing and Urban Development
Plaintiff Description Four named plaintiffs representing putative class of African-American New York City homeowners whose mortgages were auctioned through one of HUD's Note Sales or who are at risk of having their mortgage sold through one of HUD's Note Sales.
Class action status sought Yes
Class action status granted Pending
Filed Pro Se No
Prevailing Party None Yet / None
Public Int. Lawyer Yes
Nature of Relief None yet
Source of Relief None yet
Filing Year 2016
Case Ongoing Yes
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)
1:16-cv-3948 (E.D.N.Y.)
FH-NY-0026-9000.pdf | Detail
Date: 10/06/2016
Source: PACER [Public Access to Court Electronic Records]
General Documents
Complaint [ECF# 1]
FH-NY-0026-0002.pdf | Detail
Date: 07/15/2016
Source: PACER [Public Access to Court Electronic Records]
First Amended Class Action Complaint [ECF# 11]
FH-NY-0026-0001.pdf | Detail
Date: 08/12/2016
Source: PACER [Public Access to Court Electronic Records]
Judges Gold, Steven M. (E.D.N.Y.) [Magistrate]
FH-NY-0026-9000
Vitaliano, Eric Nicholas (E.D.N.Y.)
FH-NY-0026-9000
Plaintiff's Lawyers Brinckerhoff, Matthew D. (New York)
FH-NY-0026-0001 | FH-NY-0026-9000
Coffey, Carolyn Elizabeth (New York)
FH-NY-0026-9000
Fasano, Christopher (New York)
FH-NY-0026-0001 | FH-NY-0026-0002 | FH-NY-0026-9000
Houk, Diane L. (District of Columbia)
FH-NY-0026-0001 | FH-NY-0026-9000
Jun, Linda (New York)
FH-NY-0026-0001 | FH-NY-0026-9000
Lieb, Douglas E. (New York)
FH-NY-0026-9000
Lynch, Elizabeth Mary (New York)
FH-NY-0026-0001 | FH-NY-0026-0002 | FH-NY-0026-9000
Defendant's Lawyers Colon-Bosolet, Melissa (New York)
FH-NY-0026-9000
Florio, Kelly Horan (New York)
FH-NY-0026-9000
Moore, Tamra (District of Columbia)
FH-NY-0026-9000
Nagin, Benjamin R. (New York)
FH-NY-0026-9000
Schachner, Elliot M. (New York)
FH-NY-0026-9000
Zambrano, Angela (Texas)
FH-NY-0026-9000

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