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Mortgage Discrimination Lawsuits Second-Quarter 2011 Mortgage Litigation Index

Mortgage Discrimination Lawsuits
Second-Quarter 2011 Mortgage Litigation Index
Class actions and lawsuits related to lending discrimination involving minorities, neighborhoods and property types.

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to StoryLink to Story
Charles Schwab Bank U.S. Department of Housing and Urban Development n/a $30,000 HUD and Charles Schwab Bank reached a conciliation agreement settling allegations that the bank refused to accept a loan application from the son of a mother with disabilities. The son was acting under power of attorney for his mother. United States Department of Housing and Urban Development v. Charles Schwab Bank FHEO Case No. 04-09-0053-8 08/22/08 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Golden Empire Mortgage Inc. and Howard D. Koostra Federal Trade Commission United States District Court for the Central District of California $1,500,000 The FTC sued Defendants, a California-based lender and its owner, for allegedly charging Hispanic borrowers higher prices for mortgage loans than non-Hispanic white consumers. A total of $1.5 million in checks were mailed to 3,162 Hispanic borrowers who obtained a mortgage from Defendants. Federal Trade Commission v. Golden Empire Mortgage Inc. et al. 2:2009cv03227 05/07/09 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Wells Fargo Bank, N.A., and Wells Fargo Financial Leasing, Inc. Mayor and City Council of Baltimore United States District Court for the District of Maryland Baltimore Division n/a Wells Fargo is accused of discriminatory lending practices including steering black borrowers who qualified for prime loans into subprime mortgages and targeting unqualified borrowers for refinance or home-equity loans that caused them to lose their houses. Mayor and City of Baltimore v. Wells Fargo Bank, N.A. 1:08-cv-00062-JFM 10/21/10 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Wells Fargo Bank, N.A., Wells Fargo Financial Tennessee, Inc., and Wells Fargo Financial Tennessee 1, LLC City of Memphis and Shelby County United States District Court for the Western District of Tennessee Western Division n/a Wells Fargo is accused of discriminatory lending practices that resulted in extraordinarily high rates of foreclosure in minority neighborhoods, which caused the County to lose property tax revenues and to spend additional funds for critical municipal services as foreclosed homes become vacant and deteriorated. City of Memphis et al. v. Wells Fargo Bank, N.A., et al. 2:09-cv-02857-STA-dkv 04/07/10 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Wells Fargo, N.A. Ohio Civil Rights Commission In the Common Pleas Court Cuyahoga County, Ohio n/a In Ohio, Attorney General Michael DeWine filed a lawsuit against Wells on behalf of the Ohio Civil Rights Commission alleging that the lender used reverse redlining to herd black borrowers into more expensive loans. Ohio Civil Rights Commission v. Wells Fargo, N.A., et al. CV11748383 02/19/11 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Citizens Republic Bancorp Inc. and Citizens Bank United States United States District Court for the Eastern District of Michigan $3,600,000 Defendants agreed to a $3.6 million settlement with the Justice Department over charges of alleged discrimination by a loan production office in a black Detroit neighborhood. The U.S. alleged violations of the Fair Housing Act and Equal Credit Opportunity Act. United States v. Citizens Republic Bancorp Inc., et al. 2:2011cv11976 05/05/11 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Midwest BankCentre United States United States District Court for the Eastern District of Missouri $1,450,000 Defendant agreed to settle with the Department of Justice over allegations that it violated the Fair Housing Act and Equal Credit Opportunity Act and engaged in a pattern or practice of discrimination on the basis of race and color. A $1.45 million dollar settlement has been announced. United States v. Midwest BankCentre 2:2011cv01086 06/16/11 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Mortgage Guaranty Insurance Corporation United States of America United States District Court Western District of Pennsylvania n/a HUD is charging MGIC with discriminating against a Pennsylvania family by denying their application for mortgage insurance unless and until the wife returned to work after maternity leave, in violation of the Fair Housing Act. United States Department of Housing and Urban Development v. Mortgage Guaranty Insurance Co. 2:05-mc-02025 07/05/11 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Nixon State Bank United States United States District Court for the Western District of Texas $100,000 Texas-based bank allegedly charged higher loan prices to Hispanic borrowers in violation of the Equal Credit Opportunity Act. One factor tied to the alleged discrimination was the lack of a written loan pricing policy prior to 2009. United States v. Nixon State Bank 5:2011cv00488 06/17/11 www.mortgagedaily.com/LitigationDiscrimination062111.asp
Wells Fargo N.A., Wells Fargo Tennessee, Inc. City of Memphis United States District Court for the Western District of Tennessee n/a Court denied Wells’ motion to dismiss suit alleging discrimination for mortage practices having adverse impact on african american borrowers. City alleged violations of Fair Housing Act and Tennessee Consumer Protection Act. City of Memphis v. Wells Fargo N.A. et al. 2:2009-cv-2857 12/30/09 www.mortgagedaily.com/mctlawsuitdiscriminationwels050511.asp
Cornerstone Mortgage Company, d/b/a Cornerstone Home Lending and Cornerstone Home Lending, Inc. U.S. Department of Housing and Urban Development and Assistant Secretary for the Office of Fair Housing and Equal Opportunity n/a $750,000 HUD announced a settlement with Cornerstone Mortgage Company, who allegedly discriminated against a pregnant loan applicant. Cornerstone initially approved her for a loan, but rescinded its approval upon learning that the woman was on maternity leave, in violation of the Fair Housing Act. United States Department of Housing and Urban Development v. Cornerstone Mortgage Co. n/a n/a www.mortgagedaily.com/LitigationDiscrimination062111.aspwww.mortgagedaily.com/MctSettlementHud060211.asp
Mortgage Master Martha Coakley, Attorney General for the Commonwealth of Massachusetts n/a $250,000 Mortgage Master agreed to a settlement with the MA AG that calls for the firm to spend $95,000 refunding $250 to $1000 per borrower to those allegedly charged higher-than-normal fees because they were black. The firm will also pay $155,000 that the AG’s office plans to spend on consumer education. n/a n/a n/a www.mortgagedaily.com/MctMortgageMasters051811.asp

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