Attorney General Holder Commits to Fighting Lending Discrimination, Mortgage Fraud
On June 17, 2009, Attorney General Eric Holder testified before the United States Senate Committee on the Judiciary regarding the U.S. Department of Justice's recent accomplishments and current priorities. In his statement, Holder made clear that prosecuting mortgage fraud and other financial crimes will continue as a top Department priority. In addition, he emphasized the Department's commitment to combating lending discrimination.
In addition to focusing on fraudulent scams, I am committed to ensuring that homeowners who may be having difficulty making their mortgage payments do not experience discrimination and can benefit in equal measure from legitimate loan modification programs and other federal programs to provide mortgage assistance and stabilize home prices. Discrimination in lending on the basis of race, national origin, or other prohibited factors is destructive, morally repugnant, and against the law. Lending discrimination prevents those who are discriminated against from enjoying the benefits of access to credit, including reasonable mortgage payments, so they can stay in their homes and provide much needed stability for their neighborhoods. We are using the full range of our enforcement authority to investigate and prosecute this type of unacceptable lending discrimination.
Beginning in the early 1990's with ground-breaking cases filed and settled against Decatur Federal Savings & Loan (consent order), Chevy Chase FSB (consent order), and Shawmut Mortgage (consent order), the DOJ's Civil Rights Division aggressively pursued lending discrimination investigations and prosecutions concerning underwriting, pricing, and redlining. However, more recently the number of filings in this area has dropped precipitously for a number of reasons, not the least of which is the abundance of available credit in the market and changed priorities within the Department. With a tightening credit market, more stringent underwriting standards, and a re-committed Justice Department, Attorney General Holder's recent statement may signal a renewed interest in lending discrimination matters.
