DOJ Settlement May Signal Expanded Liability and Aggressive Enforcement


This article, which appeared in the ABA's Section of Litigation, Consumer & Civil Rights Newsletter, discusses the Department of Justice's 2010 settlement with two subsidiaries of American International Group (AIG), resolving allegations that the companies engaged in a pattern or practice of discrimination against African American borrowers. The $6.1 million settlement reflects the DOJ's increasingly aggressive enforcement posture in fair lending cases, and to what extent that posture has implications for broadened lender liability. The author notes that DOJ is increasingly persistent in its attempts to hold lenders accountable for the actions of third parties such as independent mortgage brokers.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Civil Remedies Updates, Civil Rights Updates, Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »