On March 19, 2010, the U.S. District Court for the District of Delaware approved a settlement between the Department of Justice (DOJ) and two subsidiaries of American International Group Inc.—AIG Federal Savings Bank (AIG FSB) and Wilmington Finance, Inc. (WFI and, together with AIG FSB, AIG), an affiliated mortgage lending company—resolving allegations that the companies engaged in a pattern or practice of discrimination against African American borrowers. The settlement reflects the DOJ's increasingly aggressive enforcement of fair-lending laws and, to the extent it broadens lender liability for the actions of third parties, is especially significant.
February 01, 2011 Articles
Settlement Bodes Expanded Liability and Aggressive Enforcement
The settlement reflects the DOJ's increasingly aggressive enforcement of fair-lending laws and, to the extent it broadens lender liability for the actions of third parties, is especially significant.
By Benjamin P. Saul – February 1, 2011
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