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1
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SETTLEMENT AGREEMENT
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EXTRACTED KEY WORDS
SETTLEMENT FMC UNITED STATES OVERAGES MORTGAGE BORROWERS OFFICERS PRICES SETTLEMENT FUND SETTLEMENT AGREEMENT FREF FEDERAL RESERVE HOME MORTGAGE DISTRICT YORK FLEET MORTGAGE MONITORING UNDERAGES PAID COMPENSATION PRACTICES ATTORNEY COURT LENDER HOUSING HIGHER PRICES SHEET PRICING CIVIL RIGHTS |
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA,
Plaintiff,
v.
CV 96 2279
FLEET MORTGAGE CORP.
Defendant.
__________________________________
SETTLEMENT AGREEMENT
I. INTRODUCTION
The parties, acting by and through their counsel, jointly enter
into and file this Settlement Agreement in order to fully and
finally resolve the lawsuit filed contemporaneously herewith by
the United States against Fleet Mortgage Corp. ("FMC" or the
"lender") alleging violations of the Fair Housing Act, 42 U.S.C.
§§ 3601-3619 and the Equal Credit Opportunity Act, 15 U.S.C.
1691-1691f, which allegations FMC denies.
A. The Claims Made By The United States.
1. The United States alleges that from August 1, 1993,
through June 30, 1994, FMC's predecessor, Fleet Real
Estate Funding Corp. ("FREF") engaged in discriminatory
treatment of African-American and Hispanic borrowers at
its branch offices in Woodbridge, New Jersey, and
Westbury, New York, by charging them higher prices in
the form of greater "overages" and fewer "underages" on
home mortgage loans than it charged white borrowers. An
overage occurs when a loan closes with higher points
than are required on the price sheet for the applicable
loan product or when a premium interest rate is obtained
and then retained by the lender. An underage occurs when
the loan officer obtains fewer points than the price
sheet baseline. These higher prices were not based on
differences in risk or other neutral factors such as
local market conditions.
2. During the period in question, overages were used by
FREF to allow regional branches to adjust loan prices to
local market conditions and as an incentive to loan
officers to originate more profitable loans. FREF
furnished its branches with daily, national price sheets
that established baseline prices (in the form of
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2
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COMPLAINT
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EXTRACTED KEY WORDS
FLEET ACT PRACTICES MORTGAGE BORROWERS DEFENDANT FAIR HOUSING DISCRIMINATORY UNITED STATES RIGHTS EQUAL CREDIT OPPORTUNITY DISCRIMINATORY POLICIES CIVIL AFRICAN-AMERICAN HISPANICS PRICE RACE NATIONAL ORIGIN BASIS WESTBURY WOODBRIDGE APPLICANTS HOME MORTGAGE LOANS OVERAGES COURT BUSINESS FEDERAL RESERVE UNDERAGES SIMILARLY SITUATED WHITE |
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA,
Plaintiff,
v.
CV 96 2279
FLEET MORTGAGE CORP.
Defendant.
________________________________
COMPLAINT
The United States of America alleges:
1. The United States brings this action to enforce the provisions of
Title VIII of the Civil Rights Act of 1968 ("Fair Housing Act"),
as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C.
§§ 3601-3619, and of the Equal Credit Opportunity Act ("ECOA"), 15
U.S.C. §§ 1691-1691f.
2. This court has jurisdiction of this action pursuant to 28 U.S.C.
1345, 42 U.S.C. § 3614, and 15 U.S.C. § 1691(h) and venue is
appropriate pursuant to 28 U.S.C § 1391(c) and 1392(a).
3. Defendant, Fleet Mortgage Corp., is incorporated under the laws of
the State of South Carolina, with its principal place of business
in Columbia, South Carolina. Fleet Mortgage Corp. (hereinafter
"Fleet" or "the lender") is the successor to Fleet Real Estate
Funding Corporation, the name under which the defendant did
business during the occurrence of the events described in this
Complaint. Fleet is a subsidiary of Fleet Mortgage Group, Inc.,
which is in turn a subsidiary of Fleet Financial Group, Inc., with
its principal place of business in Providence, Rhode Island. Fleet
Financial Group, Inc., is a bank holding company, making it and
all of its subsidiaries subject to the regulatory supervision of
the Federal Reserve Board.
4. Fleet's business includes engaging in residential real
estate-related transactions and regularly extending credit to
persons. Fleet is a creditor as that term is defined by section
702(e) of the ECOA, 15 U.S.C. § 1692a(e), and is, therefore,
subject to the requirements of the ECOA and its implementing
Regulation B, as amended, 12 C.F.R. Part 202, in effect on or
after March 23, 1977.
5. Fleet is organized on a regional basis. Its Mid-Atlantic Region
includes branch offices in Westbury, New York, and in Woodbridge,
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