UNITED STATES DISTRICT COURT
DISTRICT OF ARIZONA

United States of America,

          Plaintiff,

No. CV-04-2957 PHX-DGC

CONSENT DECREE

The Mortgage Super Center, Inc.

          Defendant.

___________________________________________

I. FACTUAL BACKGROUND

The United States brought this action against Defendant The Mortgage Super Center, Inc. (MSC), an Arizona corporation doing business in the District of Arizona, to enforce the provisions of Title VIII of the Civil Rights Act of 1968 (the Fair Housing Act), as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. §§ 3601 et seq.

In the complaint filed on December 22, 2004, the United States alleged that Defendant breached the Conciliation Agreement it entered into to resolve an administrative complaint filed on February 21, 2003, by William and Graciela Keymolent (Complainants) with the United States Department of Housing and Urban Development (HUD). The administrative complaint alleged that Defendant MSC and Nogales Realty had discriminated against Complainants on the basis of thier national origin by engaging in discriminatory financing in a residential real estate transaction, in violation of sections 804 and 805 of the Fair Housing Act, 42 U.S.C. §§ 3604 and 3605.

The Conciliation Agreement, which became effective on June 16, 2004, when it was approved by HUD, required MSC and Nogales Realty to pay Complainants a total of $1,000.00 within 10 days of the effective date of the agreement. The Conciliation Agreement also required MSC to refinance the Complainants' first and second mortgages as one loan with a 30-year fixed rate of interest at prevailing market rates within 10 days of the effective date of the agreement. As part of MSC's obligation to refinance the Complainants' mortgages, the Conciliation Agreement required MSC to waive the pre-payment penalty and closing costs associated with the refinancing of the mortgages. Finally, the Conciliation Agreement required MSC to attend fair housing training with an emphasis on fair lending practices, within 60 days of the effective date of the agreement.

The complaint alleges that Defendant breached the Conciliation Agreement by: (1) failing to pay its share of the $1,000.00 payment to the Complainants, (2) failing to refinance the Complainants' two mortgages, and (3) failing to provide verification of its compliance with the Agreement's attendance of fair housing training provision. The complaint also alleges that Defendant's breach of the Conciliation Agreement was willful and in bad faith.

The parties have agreed that in order to avoid protracted and costly litigation, the controversy should be resolved without further litigation. Therefore, without a trial or adjudication of any of the facts alleged by the United States, the parties consent to entry of this Decree.

It is hereby ORDERED, ADJUDGED AND DECREED:

II. INJUNCTION

A. Defendant, its agents, employees, and all persons in active concert or participation with it, are hereby enjoined from:

1. Discriminating against any person in the terms, conditions, or privileges of sale of a dwelling, or in the provision of services or facilities in connection with such dwelling because of national origin, in violation of 42 U.S.C. § 3604;
2. Discriminating against any person in the making or purchasing of loans or providing other financial assistance for purchasing, constructing, improving, repairing, or maintaining a dwelling because of national origin, in violation of 42 U.S.C. § 3605; and
3. Coercing, intimidating, threatening, or interfering with any person in the exercise or enjoyment of, or on account of his or her having exercised or enjoyed, or on account of his or her having aided or encouraged any other person in the exercise or enjoyment of any right granted or protected by 42 U.S.C. § 3604, in violation of 42 U.S.C. § 3617.

III. TRAINING

A. Within sixty (60) days of entry of this Decree, Defendant shall provide HUD and the Department of Justice with a certification that its employees attended fair housing training in accordance with paragraph 16 of the Conciliation Agreement. (APPENDIX A).

IV. MONETARY RELIEF

A. Defendant shall pay the total sum of eight-thousand three-hundred and fifty-eight dollars and eighty-five cents ($8,358.85) to Complainants. This amount shall be paid by certified or cashier's check made out to William and Graciela Keymolent and mailed to: U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section - NWB, 950 Pennsylvania Avenue, N.W., Washington, D.C. 20530, Attn: Anthony F. Archeval, DJ No. 175-8-135. Said payment shall be made within thirty (30) days of the entry of this Decree.

B. In consideration of this payment, William and Graciela Keymolent shall execute a release substantially equivalent to that set forth in APPENDIX B.

V. JURISDICTION

A. The parties have consented to the entry of this Decree as indicated by the signatures below and each party will bear its own costs and attorney's fees associated with this litigation. To this end, the parties stipulate and the Court finds that this Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. §§ 1331 and 1345 and 42 U.S.C. § 3614(b)(2). This Consent Decree is effective immediately upon its entry by the Court.

B. The Court shall retain jurisdiction over this action and over the Defendant for three years from the date of entry of this Consent Decree to enforce the terms of the Decree, after which time the case shall be dismissed with prejudice. The United States may move the Court to extend the duration of the Decree if it determines that the Defendant has violated one or more terms of the Decree or if the interests of justice otherwise require.

C. The parties to this Consent Decree shall endeavor in good faith to resolve informally any differences regarding interpretation of and compliance with this Decree prior to bringing such matters to the Court for resolution. However, in the event of a failure by the Defendant to perform in a timely manner any act required by this Consent Decree or otherwise to act in accordance with any provision thereof, the United States may move this Court to impose any remedy authorized by law or equity, including, but not limited to, an order requiring performance of such act or awarding any damages, costs and/or attorney's fees that may be occasioned by the Defendant's violation of this Consent Decree.

Ordered this ______ day of October, 2005.

For the United States of America:

PAUL K. CHARLTON United States Attorney RONALD GALLEGOS Assistant U.S. Attorney Two Renaissance Square Suite 1200 Chief Phoenix, AZ 85004-4408

BRADLEY J. SCHLOZMAN Acting Assistant Attorney General Civil Rights Division s/Anthony F. Archeval STEVEN H. ROSENBAUM KEISHA DAWN BELL Deputy Chief ANTHONY F. ARCHEVAL Trial Attorney Housing and Civil Enforcement Section Department of Justice Civil Rights Division 950 Pennsylvania Avenue, N.W. Northwestern Building 7th Floor, Suite 7002 Washington, DC 20530 Tel: (202) 305-4066 Fax: (202) 514-1116

For Defendant The Mortgage Super Center, Inc.:

s/James Hoepf James Hoepf, President

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Document Filed: October 31, 2005