HUD’s Charge of Discrimination reveals troubling details about the appraisal process, highlighting inaccuracies and methodological deviations that led to a significantly lower property value. This undervaluation subsequently resulted in the denial of the homeowner’s refinance loan application. Diane M. Shelley, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity, stated, “Homeownership is crucial to build both generational wealth and housing stability for Black and Brown families.” As the case proceeds, it underscores the ongoing challenges in ensuring equity in housing and the importance of vigilance against discriminatory practices in real estate transactions.
With changing regulations, subdivision restrictions, municipal ordinances, state and federal laws, landlords certainly have a lot to keep up with today to make sure they stay compliant in their rental business. I’ve been in the business over 40 years, have an interest-and a fair understanding of- laws that affect real estate, yet still find it challenging to stay updated. Given this, I can only imagine the challenge faced by someone with a full-time career who also owns rental properties as an investment. Perhaps, this might be a compelling reason to consider hiring a professional property manager for your rentals. However, that decision brings its own complexities, which I’ll delve into in a future article.
A recurring issue for landlords, which prompts many questions from agents in our firm, clients, and other landlords, revolves around service animals. The question is usually framed something like, “I don’t want any pets in my rental properties, so I have a strict no-pet policy but am I obligated to allow dogs or other pets if the tenant claims it’s a ‘service animal’?” Before I go further, let me remind you, I am not an attorney, this isn’t legal advice—in fact, it’s not advice at all. I’m merely sharing what I’ve learned on the topic to heighten awareness of the issue and to encourage those that are not familiar with it to learn what they need to learn or to seek out proper legal guidance to avoid problems.
Today, as we celebrate the life of Dr. Martin Luther King, Jr. who is best known as a leader in the Civil Rights movement, I wanted to look at how his efforts also ultimately resulted in the Fair Housing Act, which sought to end discrimination in housing.
Through the efforts of the civil rights movement, Dr. King and others were able to get the attention of our nation resulting in President John F. Kennedy, in a nationally televised address on June 6, 1963, urging the nation to ” take action toward guaranteeing equal treatment of every American regardless of race.” Shortly after his address to the nation, President Kennedy proposed that Congress consider civil rights legislation that would address rights in many areas such as voting, public accommodations, school desegregation but not housing at the time. Even though President Kennedy was assassinated on November 22, 1963, his efforts beforehand still resulted in the Civil Rights Act of 1964 when, then President, Lyndon Johnson, signed into law on July 2, 1964.
The Civil Rights Act of 1964 prohibited discrimination in public places, provided for integration of schools, and made employment discrimination illegal, however, it did not address housing.
Four years later came the Civil Rights Act of 1968, which is also referred to, and more commonly known, as the “Fair Housing Act of 1968″, which expanded the original civil rights act to include prohibiting discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin or sex. President Lyndon Johnson signed the Fair Housing Act into law on April 11, 1968, one week after Dr. Martin Luther King, Jr. was assassinated.
Fair Housing Resources:
Today, as we celebrate the life of Dr. Martin Luther King, Jr. who is best known as a leader in the Civil Rights movement, I wanted to look at how his efforts also ultimately resulted in the Fair Housing Act, which sought to end discrimination in housing.
Through the efforts of the civil rights movement, Dr. King and others were able to get the attention of our nation resulting in President John F. Kennedy, in a nationally televised address on June 6, 1963, urging the nation to ” take action toward guaranteeing equal treatment of every American regardless of race.” Shortly after his address to the nation, President Kennedy proposed that Congress consider civil rights legislation that would address rights in many areas such as voting, public accommodations, school desegregation but not housing at the time. Even though President Kennedy was assassinated on November 22, 1963, his efforts beforehand still resulted in the Civil Rights Act of 1964 when, then President, Lyndon Johnson, signed into law on July 2, 1964.
The Civil Rights Act of 1964 prohibited discrimination in public places, provided for integration of schools and made employment discrimination illegal, however, it did not address housing.
Four years later came the Civil Rights Act of 1968, which is also referred to, and more commonly known, as the “Fair Housing Act of 1968″, which expanded the original civil rights act to include prohibiting discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin or sex. President Lyndon Johnson signed the Fair Housing Act into law on April 11, 1968, one week after Dr. Martin Luther King, Jr. was assassinated.
Fair Housing Resources:
Dr. Martin Luther King, Jr. resources and information…
A bill introduced by St Louis County Councilmember Lisa Clancy would require landlords in unincorporated St Louis County to participate in the Section 8 program as well as pretty much any other rental subsidy program. St Louis County bill number 102 (see complete bill at bottom of article), introduced by Councilmember Clancy, if passed, would amend the existing St Louis County “Fair Housing Code” ordinance adding “lawful source of income” to the list of things that a landlord cannot discriminate based upon.
The St Louis County Fair Housing Ordinance (section 717.020) currently makes it unlawful for landlords to discriminate on the basis of race, color, religion, national origin, gender, disability, sexual orientation, gender identity, or familial status. Currently included in the protected classes under St Louis County law, which are not included in the Federal Fair Housing Act, are “sexual orientation” and “gender identity”. In addition, St Louis County has “gender” as a class instead of “sex” as is in the Federal Fair Housing Act. If St Louis County Council bill 102 passes and becomes an ordinance, then “lawful source of income” will be an additional protected class and will be another one that is not in the Federal Fair Housing Act.
There are other municipalities, counties, and states around the country that have passed similar legislation as well. As to be expected, legislation like this has been met with a mixed response.
Is it discriminatory for a landlord to refuse to accept Section 8, Vouchers and the like? Continue reading “Proposed St Louis County Ordinance Would Require Landlords To Accept Section 8“
The U.S. Department of Housing and Urban Development (HUD) just announced that they have filed a formal complaint against Facebook for violating the Federal Fair Housing Act by “allowing landlords and home sellers to use its advertising platform to engage in housing discrimination“.
Some of the ways HUD alleges that Facebook platform violates the Federal Fair Housing Act include:
- display housing ads either only to men or women;
- not show ads to Facebook users interested in an “assistance dog,” “mobility scooter,” “accessibility” or “deaf culture”;
- not show ads to users whom Facebook categorizes as interested in “child care” or “parenting,” or show ads only to users with children above a specified age;
- to display/not display ads to users whom Facebook categorizes as interested in a particular place of worship, religion or tenet, such as the “Christian Church,” “Sikhism,” “Hinduism,” or the “Bible.”
- not show ads to users whom Facebook categorizes as interested in “Latin America,” “Canada,” “Southeast Asia,” “China,” “Honduras,” or “Somalia.”
- draw a red line around zip codes and then not display ads to Facebook users who live in specific zip codes.
You can read the contents of the HUD complaint against Facebook here.
This is an example of why it is imperative that real estate agents, investors, landlords, and home sellers that choose to handle their own home sale know and understand the Federal Fair Housing Act including things that are prohibited under the Act. It never ceases to amaze me how many FSBO’s (for sale by owners) feel they are exempt from all housing laws and regulations just because they are not a real estate agent. I’m surprised as well by how many real estate agents really don’t fully understand it either and think things like what they do on Facebook is different than if done in a classified ad in a newspaper or just because a platform gives you the ability to do something (such as target just one sex) it makes it ok, which it obviously does not.
In any event, when it comes time to buy or sell real estate, I would encourage you to, first off, not try doing it on your own but use an agent, and then select an agent based upon he or she’s experience, qualifications and knowledge. A good starting point is here – “How To Choose A Real Estate Agent“.
Dr. Martin Luther King, Jr. is a name synonymous with civil rights who, along with his followers, led to the passage of the Civil Rights Act. Through the efforts of the civil rights movement, Dr. King and others were able to get the attention of our nation resulting in President John F. Kennedy, in a nationally televised address on June 6, 1963, urging the nation to ” take action toward guaranteeing equal treatment of every American regardless of race.” Shortly after his address to the nation, President Kennedy proposed that Congress consider civil rights legislation that would address rights in many areas such as voting, public accommodations, school desegregation but not housing at the time. Even though President Kennedy was assassinated on November 22, 1963, his efforts beforehand still resulted in the Civil Rights Act of 1964 when, then President, Lyndon Johnson, signed into law on July 2, 1964.
The Civil Rights Act of 1964 prohibited discrimination in public places, provided for integration of schools and made employment discrimination illegal, however, it did not address housing.
Four years later came the Civil Rights Act of 1968, which is also referred to, and more commonly known, as the “Fair Housing Act of 1968″, which expanded the original civil rights act to include prohibiting discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin or sex. President Lyndon Johnson signed the Fair Housing Act into law on April 11, 1968, one week after Dr. Martin Luther King, Jr. was assassinated.
Dr. Martin Luther King, Jr. resources and information…
- Audio from a photographer that covered the civil rights movement for the Southern Courier in Alabama, Mississippi and Georgia during the 60’s.
- The text of the famous “letter from Birmingham jail” Dr. King wrote while there.
- A timeline of key events in Dr. Martin Luther King Jr’s life
- Video of the famous “I have a dream speech” by Dr. King
The U.S. Department of Housing and Urban Development (HUD) announced last week that the Silver State Fair Housing Council, and ERGS, Inc., the owner/manager of four apartment complexes in Reno, Nevada, had reached an agreement to settle four Fair Housing complaints. Silver Lake State Fair Housing Council filed the complaints on September 20, 2016 against ERGS, Inc. alleging ERGS had violated the Federal Fair Housing Act by charging a pet deposit to tenants with service animals.
Under the settlement agreement, ERGS, Inc. must pay $20,500 to the Silver State Fair Housing Council as well as adopt written policies that are consistent with the Fair Housing Act and provide fair housing training for all employees who interact with tenants or applicants.
Under guidelines issued by HUD back in April 2013 it is very clear that, not only must a landlord provide reasonable accommodations to people with disabilities who required assistance animals, they must not treat the assistance animal as a pet and charge a pet deposit.
Disability-related claims are the most common type of Fair Housing complaint filed today, accounting for over 58 percent of the 4,9000 fair housing complaints filed last year.
Search St Louis Homes For Sale HERE
See ALL Homes That Will Be Open In St Louis This Weekend
Find The Value Of Your Home In Under A Minute!
Earlier this month, General Counsel for the U.S. Department of Housing and Urban Development (HUD) issued guidance on the “Application of Fair Housing Act Standards to the Use of Criminal Records by Providers of Housing and Real Estate-Related Transaction“. This guidance has caused concern among many landlords as many, in an effort to assure safe housing for their tenants, do criminal background checks on prospective tenants and have a policies against renting to applicants with a criminal background, a practice that, according to this guidance, may very well be considered to be discriminatory now.
Do landlord have to rent all all convicted felons?
While the guidance does not appear to remove a landlord’s ability to establish some restrictions on who they rent to with regard to prior convictions, however does say:
“But housing providers that apply a policy or practice that excludes persons with prior convictions must still be able to prove that such policy or practice is necessary to achieve a substantial, legitimate, nondiscriminatory interest.”
The guidance goes on to make it clear that a blanket prohibition against any person with any conviction, is not going to fly:
“A housing provider that imposes a blanket prohibition on any person with any conviction record – no matter when the conviction occurred, what the underlying conduct entailed, or what the convicted person has done since then – will be unable to meet this burden.”
So, as is often the case, there is a lot of gray area here. Below I have the entire guidance letter which goes into much more detail.
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Search St Louis Homes For Sale HERE
See ALL Homes That Will Be Open In St Louis This Weekend
5 Key Strategies To Assure A Quick Home Sale At The Maximum PriceGet a Market Report with LIVE up to date Home Sales, Prices and Inventory for ANY St Louis Area HERE
Today, as we celebrate the life of Dr. Martin Luther King, Jr., I wanted to focus on the dramatic change for the good that was brought about in the area of housing as a result of the efforts of Dr. King and the movement he started.
Through the efforts of the civil rights movement, Dr. King and others were able to get the attention of our nation resulting in President John F. Kennedy, in a nationally televised address on June 6, 1963, urging the nation to ” take action toward guaranteeing equal treatment of every American regardless of race.” Shortly after his address to the nation, President Kennedy proposed that Congress consider civil rights legislation that would address rights in many areas such as voting, public accommodations, school desegregation but not housing at the time. Even though President Kennedy was assassinated on November 22, 1963, his efforts beforehand still resulted in the Civil Rights Act of 1964 when, then President, Lyndon Johnson, signed into law on July 2, 1964. Continue reading “Remembering Dr. Martin Luther King, Jr. and His Impact On Fair Housing“
Today most, if not all, landlords are aware of the Federal Fair Housing Act with regard to making various types of discrimination illegal when it comes to housing and, even if they don’t have a thorough understanding of all of the nuances of the act, at least have a basic understanding of it. However, today, a lack of a thorough understanding of the law, as well as the risks associated with violating it, or even being accused of violating it, can be quite costly to a landlord. Therefore, if you are considering becoming a landlord, or perhaps are already in the midst of building your real estate empire, spending time studying and understanding the Federal Fair Housing Act and how it applies to you would be time well spent and it would also be a great move to align yourself with a real estate professional with a good understanding of it that can help you navigate the regulatory waters a landlord must navigate today.
The Case of HUD vs Pebble Beach Apartments –
In July 2013 there was a fair housing violation complaint filed against the owner and manager of the Pebble Beach Apartments alleging they discriminated against a tenant based on familial status in violation of the Fair Housing Act.
The Allegations made by HUD after an investigation: (the numbering corresponds with the complaint itself)
Search St Louis Homes For Sale HERE
See ALL Homes That Will Be Open In St Louis This Weekend
5 Key Strategies To Assure A Quick Home Sale At The Maximum Price
The Department of Justice (DOJ) announced today that they had reached an agreement with Eagle Bank and Trust Company to resolve allegations that “Eagle Bank and Trust Company (Eagle Bank) engaged in a pattern or practice of “redlining” predominantly African-American neighborhoods in and around St. Louis.” “Redlining” is defined by the DOJ as “the discriminatory practice by banks or other financial institutions to deny or avoid providing credit services to a consumer because of the racial demographics of the neighborhood in which the consumer lives.”
In order to resolve the allegations, Eagle Bank has agreed to:
See The Lawsuit Filed By The Department of Justice vs Eagle Bank
Search ALL St Louis Homes For Sale
See ALL Homes That Will Be Open In St Louis This Weekend
Continue reading “Eagle Bank Reaches Agreement With DOJ To Settle Discrimination Claim“
Paula Anderson, a landlord who owns a two-bedroom home in Santa Fe, New Mexico, was charged with discrimination by HUD after HUD’s investigation revealed that there was cause to believe Anderson had violated the Federal Fair Housing act as follows:
As described in paragraphs 7 to 25 above, Respondent Anderson violated 42 U.S.C. §§ 3604(f)(1) and (f)(2) as defined by 42 U.S.C. § 3604(f)(3)(B) because she discriminated in the terms, conditions, or privileges of Complainant’s tenancy and made her dwelling unavailable by refusing to allow Complainant to live with her assistance animal and daughter at the subject property when such accommodations were necessary to afford Complainant an equal opportunity to use and enjoy her dwelling. 42 U.S.C. §§ 3604(f)(1), (f)(2), and (f)(3)(B); 24 C.F.R. §§ 100.202(a), 100.202(b), and § 100.204(a).
The interesting thing about this case is that the “assistance animal” is a cat and while many landlords may be familiar with service dogs, particularly as used by visually impaired people, the claim by a tenant that a cat is a service animal may seem like a stretch and not be taken serious by a landlord but this case proves that it needs to be taken seriously.
Read the entire case here – The Secretary, United States Department of Housing and Urban Development vs Paul Anderson
Authors note: While setting out to write something in honor of Dr. Martin Luther King today, I found the article below I wrote a year ago at this time and realize it says what I would say today so I chose to publish it again…Today, as we celebrate the life of Dr. Martin Luther King, Jr., it is hard for me to believe that, during my lifetime, there was a time when it was legal to refuse to rent or sell a house to someone because of their race or skin color, but it was. However, the Civil Rights Act of 1968, also referred to as the “Fair Housing Act of 1968”, which was signed into law by President Lyndon Johnson, just one week after Dr. King’s assassination, corrected this atrocity and made it illegal to refuse to rent or lease a home to someone based upon their race.
I know we have a long way to go and there may never come the time that discrimination does not exist in one form or another, but I am thankful for Dr. King and that he was willing to sacrifice his life to make life better for others. While I was just 7 years old when Dr. King was assassinated and only knew of him through historical accounts, that changed a few years ago when I met my good friend Otis Woodard. I now feel like I have gotten to know Dr. King a little better through Otis. You see, Otis was part of the civil rights movement and was a friend of Dr. King’s. When Otis talks about Dr. King you can see how much he respected him and what an influence Dr. King has had on his life. In fact, a park in north St Louis where Otis converted vacant lots it into a safe haven for homeless and poor people of the neighborhood pays tribute to Dr. King, being named “Peace Park” and bearing a quote from Dr. King, “At the center of non-violence stands the principle of love.”
While writing this article, I saw a tweet from another man I tremendous amount of respect for, Dr. Ben Carson, that says it all… “As we celebrate Dr. Martin Luther King, Jr. let us pay more attention to the content of one’s character than the color of one’s skin.”
Some property owners elect to sell or lease out a home or condo without engaging the services of a professional real estate agent or broker without fully understanding all the risk they are taking on. Granted, being a licensed real estate broker, I’m a little partial here, but I can honestly say that, given all the laws, rules and regulations that pertain to the sale or leasing of residential real estate, as well as the hefty fines, or even criminal charges, that can result in non-compliance, for most owners I would not suggest to go it alone. One of the more significant risks an owner faces is to violate Title VIII of the Civil Rights Act of 1968 or, as it is more commonly known, the Fair Housing Act.
The Fair Housing Act, as originally passed, prohibited discrimination in the sale, rental and financing of dwellings based on race, color, religion, sex or national origin. In 1989, it was amended to also prohibit discrimination based on disability or on familial status. While I believe the number of people that deliberately violate this act is small, I see many “accidental” or unintentional violations of it on a regular basis not only by private homeowners or landlords but even by licensed real estate professionals. The most common form of violation I see has to do with advertising residential property for sale or lease and then often as a result of a choice of words.
The reason so many violations occur in advertising I believe is that it is easy to make an honest mistake in this area without realizing you are violating the Fair Housing Act. For example, if your home has a large, level rear yard that is fenced, has a large sandbox and one of those fancy monster-sized playground sets, you do NOT have a “good yard for kids” or at least you cannot advertise it that way as it could be taken to be a preference with regard to familial status. Get the picture? Yes, it’s like a minefield out there and all I’m talking about here is advertising. This is such an easy area to make an innocent, but still a potentially costly mistake in that I made a short, 2-minute video for real estate agents with “Do’s and Don’ts” of advertising under the Fair Housing Act. The video is below for all you owners that decide you want to try it on your own or, perhaps, want a better understanding of why your agent cannot promote or advertise your home in a particular way that you feel is significant, such as by telling everyone about the great yard for kids or the parish you are in, that your home is within a short walk to a temple, etc.
The U.S. Department of Housing and Urban Development (HUD) just announced that Wells Fargo Home Mortgage has agreed to a $5 Million settlement to resolve allegations that Wells Fargo discriminated against women who were pregnant, or had recently given birth, and were on maternity leave. (Click HERE for settlement agreement)
There have been a total of 190 maternity leave discrimination complaints filed with HUD against lenders in the past 4 years and those complaints have resulted in 40 settlements for a total of $1.5 million, prior to today’s settlement with Wells Fargo.
StLouisMLS.com
Today, as we celebrate the life of Dr. Martin Luther King, Jr., it is hard for me to believe that, during my lifetime, there was a time when it was legal to refuse to rent or sell a house to someone because of their race or skin color, but it was. However, the Civil Rights Act of 1968, also referred to as the “Fair Housing Act of 1968”, which was signed into law by President Lyndon Johnson, just one week after Dr. King’s assassination, corrected this atrocity and made it illegal to refuse to rent or lease a home to someone based upon their race.
I know we have a long way to go and there may never come the time that discrimination does not exist in one form or another, but I am thankful for Dr. King and that he was willing to sacrifice his life to make life better for others. While I was just 7 years old when Dr. King was assassinated and only knew of him through Continue reading “Dr. Martin Luther King Jr and Fair Housing“
The Justice Department announced today that the city of St. Peters, Mo. will pay $80,000 and make changes to its zoning laws to settle a lawsuit alleging that the city violated the federal Fair Housing Act (FHA) and Title II of the Americans with Disabilities Act (ADA) when it denied a zoning request to operate a group home for four women with intellectual disabilities. The lawsuit is part of the Justice Department’s continuing effort to enforce civil rights laws that require states and municipalities to end discrimination against, and unnecessary segregation of, persons with disabilities. The settlement was filed today and must be approved by the U.S. District Court for the Eastern District of Missouri. Continue reading “City of St Peters Settles with DOJ On Disability Discrimination Allegations“
Four years ago on the day we celebrated the life of Dr. Martin Luther King, Jr., I wrote the article below on a personal blog. This morning while doing some research on Dr. King I ran across this article which I had almost forgotten I had written, read it and decided even though some of the data in it is a little dated with regard to current events, it is worthy of publishing again to pay honor to Dr. Martin Luther King, Jr.
Reprinted from January 19, 2009…
Today we celebrate the life of Dr. Martin Luther King, Jr., the very influential, prominent leader and icon of the American Civil Rights movement.
One of the most important accomplishments of Dr King and the Civil Rights movement was the passage of the Civil Rights Act of 1964 which was signed into law on July 2, 1964, and prohibited discrimination in public places, provided for integration of schools and made employment discrimination illegal. It did not, however, make discrimination in housing illegal which Dr. King and the Civil Rights Movement continued to work toward.
Finally, on April 11, 1968 discrimination in housing became illegal when Continue reading “Dr. Martin Luther King Jr. remembered“
Over forty years ago Congress passed Title VIII of the Civil Rights Act of 1968 known as “The Fair Housing Act“. This act prohibits discrimination in public and private housing markets that is based on race, color, national origin, religion, sex, disability or familial status. At that time, the most common type of discrimination in housing was based upon race or color. Today, according to a recent report by HUD, the majority of housing discrimination complaints filed are based on disability discrimination. Continue reading “Majority of Housing Discrimination Complaints are filed based on disability“
The Justice Department, the Department of Housing and Urban Development (HUD) and 49 state attorneys general announced today the filing of their landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. Continue reading “Bank of America, J.P. MOrgan Chase, Wells Fargo, Citigroup and Ally Financial reach $25 Billion Agreement with Fed & State Government over Foreclosure Abuses“
WASHINGTON – The Justice Department today announced that Roger Harris, Hediger Enterprises Inc., Carroll Management Group, Forum Manor Associates L.P. and Forum Manor LLC have agreed to pay $295,000 in monetary damages and civil penalties to resolve a Fair Housing Act lawsuit alleging sexual harassment, race and sex discrimination, retaliation and intimidation at Forum Manor Apartments, a federally-subsidized apartment complex in Rolla, Missouri. Continue reading “Justice Department Settles Housing Discrimination Lawsuit in Rolla, Missouri“
Forty three years ago today, President Lyndon Baines Johnson signed into law the Civil Rights Act of 1968 which included Title VIII, the Fair Housing Act which, as described on HUD’s website, “prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).” Continue reading “Undercover Investigation Reveals Possible Discriminatory Treatment of REO’s by Lenders“
The Justice Department today announced a $1.25 million agreement with Warren Properties Inc., Warren Village (Mobile) Limited Partnership and Frank R. Warren to settle allegations that the defendants violated the Fair Housing Act by refusing to grant a tenant’s requests for a reasonable accommodation. This settlement is the largest ever obtained by the department in an individual housing discrimination case. Continue reading “Justice Department Settles Disability Discrimination Case Against Property Management Company for $1.25 Million“
Settlement Provides $2 Million to African-American Borrowers Who Paid Higher Interest Rates
PrimeLending, a national mortgage lender with 168 offices in 32 states at the end of 2009, has agreed to pay $2 million to resolve allegations that it engaged in a pattern or practice of discrimination against African-American borrowers between 2006 and 2009. Continue reading “Justice Department Reaches Settlement with Prime Lending to Resolve Allegations of Lending Discrimination“
The Justice Department announced this week that a Munster, Ind., condominium association and its three member board of directors have agreed to pay $120,000 to resolve allegations that they refused to approve the sale of a condominium to an African-American couple because of their race and because they had children. The settlement must still be approved by U.S. Senior District Judge Philip P. Simon. Continue reading “Justice Department Obtains $120,000 Settlement in Housing Discrimination Lawsuit Against Indiana Condominium Association“
“It is particularly disheartening then that lenders are often the subject of ill considered accusations regarding discrimination, accusations based upon analyses that lack statistical rigor”
– Michael Fratantoni, MBA’s Vice President of Research and Economics
Dennis Norman
This week the Mortgage Bankers Association (MBA) released a paper, “A Review of Statistical Problems in the Measurement of Mortgage Market and Credit Risk” conducted by Professor Anthony M. Yezer of the George Washington University and sponsored by MBA’s Research Institute for Housing America (RIHA). This paper examines the fundamental assumptions that are often used as an analysis of whether their is discrimination present in the process of mortgage lending. Continue reading “‘Flawed models’ are cause of false mortgage discrimination findings“
| For Immediate Release August 12, 2010 |
United States Attorney’s Office District of New Jersey Contact: (973) 645-2888 |
|
Alleged Schemes Defrauded Investors in Multiple States and Abroad NEWARK, NJ—Eliyahu Weinstein, aka “Eli Weinstein,” was arrested at his home this morning by federal agents on charges that he ran an investment fraud scheme causing losses of at least $200 million, U.S. Attorney Paul J. Fishman announced. Weinstein, 35, of Lakewood, N.J., was charged with one count of bank fraud and one count of wire fraud in connection with the alleged scheme. Vladimir Siforov, 43, of Manalapan, N.J., was also charged with one count of wire fraud in connection with the scheme and remains at large. Weinstein is expected to appear later today before U.S. Magistrate Judge Esther Salas in Newark federal court. Continue reading “Leader of $200 Million Real Estate Investment Scam Arrested for Fraud“ |
|
A 10-count indictment has been unsealed charging six individuals with conspiracy to commit wire fraud and wire fraud, announced U.S. Attorney Karen P. Hewitt. The defendants are charged with submitting false and fraudulent mortgage loan applications and related documents to banks and other lending institutions, thereby inducing the institutions to make approximately 36 loans totaling approximately $20,800,000.
The defendants charged with participating in the conspiracy are: Brian Andrew La Porte; Daniel John Schuetz; Michael Wayne Wickware; Roxanne Yvette Hempstead; Darryl Anthony Wallace, aka Darryl Anthony White; and Terrence Smith, aka Terry Lee Smith. The indictment alleges that the defendants devised a scheme to defraud mortgage lenders and to obtain money and property by false and fraudulent means and diverted the proceeds for their personal use and benefit.
According to the indictment, from May 2008, the defendants agreed to submit false loan applications to mortgage lenders to obtain financing to purchase residential properties. The defendants recruited “straw buyers” who had sound credit histories but who otherwise would not have qualified to purchase the residential properties selected by the defendants. The indictment further alleges that, as part of the conspiracy, Brian Andrew La Porte and Daniel John Schuetz prepared fraudulent loan applications on behalf of the straw purchasers, falsely stating the employment and monthly salaries of the straw purchasers.
The indictment further alleges that the defendants submitted fraudulent loan applications on behalf of the straw purchasers to mortgage lenders, including OwnIt Mortgage Solutions Inc., WMC Mortgage Corp., Argent Mortgage Company, Countrywide Home Loans, First Franklin, Finance America LLC, and other mortgage lenders. The defendants then caused escrow agents to disburse the funds to the defendants and others so that the defendants could divert to themselves and others the proceeds of the fraud.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who working together to launch a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. The Special Inspector General for the Troubled Asset Relief Program co-chairs the task force’s Rescue Fraud Working Group.
The case is the product of an investigation by agents of the FBI and is being prosecuted in San Diego federal court by Assistant U.S. Attorney Jonathan I. Shapiro.
An indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
The Justice Department announced it has filed a lawsuit today in federal court for the Eastern District of Missouri alleging a pattern or practice of violations of the Fair Housing Act by the owner and managers of Forum Manor Apartments, a federally-subsidized apartment complex, for refusing to rent to African-Americans and males, refusing to allow tenants to have African-American visitors, sexually harassing female tenants and retaliating against tenants who complained about such discrimination. Continue reading “Justice Department Files Fair Housing Lawsuit in Missouri Against Owner and Managers of Federally-Subsidized Property for Race and Sex Discrimination“
