ACLU files Fair Lending Lawsuit
ACLU has filed a private lawsuit under the fair lending laws against a mortgage banker based in Mt. Laurel, New Jersey. The complaint alleges that the company, PHH US Mortgage Company, does not solicit minority loan applications and has a higher denial rate for minorities than for whites.
The case is based on the theory that the mortgage lender had an affirmative obligation to seek out minority customers through its marketing practices and by locations in which it chooses to do business. This private lawsuit is therefore based heavily on theories put forward by the US Department of Justice in the consent agreement with Chevy Chase FSB. This litigation bears watching closely because it may have a significant impact on the fair lending and CRA programs of banks.
Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 15, 10/96
First published on 10/01/1996