A new unit of the Justice Department is investigating the lending practices of banks and mortgage brokers suspected of discriminating against minority borrowers.
The new Fair Lending unit is going after lenders and brokers that have unfairly denied minorities access to home loans. It’s also looking to identify companies that targeted minorities for mortgages with loose underwriting standards or high interest rates that forced them into foreclosure, said Thomas Perez, the Justice Department’s assistant attorney general for civil rights.
Penalties could include civil action or criminal charges. Perez said the unit is working with other federal bodies, including the Treasury Department, in its investigation.
Read more from ABC
From the DOJ – Fair Lending Program
Remarks as Prepared for Delivery by Attorney General Eric Holder at the Foreclosure Rescue Scams and Loan Modification Fraud Press Conference (April 6, 2009) Read the Statement
The Department of Justice has authority to investigate and file a fair lending lawsuit under the Fair Housing Act or the Equal Credit Opportunity Act. Read more about recent fair lending cases.
The Justice Department’s fair lending enforcement authority is focused on pattern or practice discrimination cases. Individuals who believe they are the victims of unfair credit transactions should contact other federal agencies that investigate individual complaints.
RECENT ACCOMPLISHMENTS OF THE HOUSING AND CIVIL ENFORCEMENT SECTION
(updated January 4, 2010)
The Housing and Civil Enforcement Section of the Civil Rights Division is responsible for the Department’s enforcement of the Fair Housing Act (FHA), along with the Equal Credit Opportunity Act, Title II of the Civil Rights Act of 1964, which prohibits discrimination in public accommodations, the land use provisions of the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Servicemembers Civil Relief Act (SCRA).
Under the FHA, the Department of Justice may bring lawsuits where there is reason to believe that a person or entity is engaged in a “pattern or practice” of discrimination or where a denial of rights to a group of persons raises an issue of general public importance. The Department of Justice also brings cases where a housing discrimination complaint has been investigated by the Department of Housing and Urban Development, HUD has issued a charge of discrimination, and one of the parties to the case has “elected” to go to federal court. In FHA cases, the Department can obtain injunctive relief, including affirmative requirements for training and policy changes, monetary damages and, in pattern or practice cases, civil penalties.
Several cases we have filed or resolved recently exemplify our efforts to ensure the availability of the housing opportunities guaranteed by the Fair Housing Act. (1) The complaints and settlement documents for the cases discussed in the text, as well as other cases handled by the Housing Section, can be found on the Housing Section’s website at www.usdoj.gov/fairhousing/caseslist.htm.
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