UNITED STATES OF AMERICA,
Plaintiff,
v.
CHEVY CHASE FEDERAL SAVINGS BANK,
and B.F. SAUL MORTGAGE COMPANY,
Defendants.
__________________________________________
This decree is entered, upon consent of the parties, to resolve claims of the United States and the Chevy Chase Federal Savings Bank and the B.F. Saul Mortgage Company [herein after referred to as the Bank and Mortgage Company] violated the Fair Housing Act, 42 U.S.C. §§ 3601-3619, and the Equal Credit opportunity Act, 15 U.S.C. §§ 1691-1691f, by discriminating on the basis of race in home mortgage financing and other types of credit transactions in the Washington, D.C. metropolitan area. The United States contends that the Bank and Mortgage Company have considered the racial composition of residential areas in determining where to market their products, and have avoided doing business in areas where African American persons reside. The United States further alleges that the challenged practices and policies are intended to deny, and have the effect of denying, an equal credit opportunity to residents of African American neighborhoods, on account of the racial identity of the neighborhood, to obtain mortgage financing and other types of credit transactions. The totality of the policies or practices challenged are commonly referred to as redlining.
In June 1993, the United States began the investigation that resulted in this lawsuit. Before and after that date the Bank and Mortgage Company initiated an agressive effort to market their products to African American residential areas. Most notably, the Bank and Mortgage Company have opened three Chevy Chase Bank branches and four B.F. Saul Mortgage Company offices in African American residential neighborhoods of the Washington, D.C. metropolitan area, and have engaged in an aggressive campaign to solicit business in African American neighborhoods. Those effects will be continued and expanded by the terms of this Consent Decree.
By this decree, the Bank and Mortgage Company have committed to a remedial plan by which they will take all reasonable actions to obtain a market share of mortgage loans in African American neighborhoods, that is comparable to the Bank and Mortgage Company's market share in white residential areas. The Bank and Mortgage Company's plan to achieve this objective includes opening another three mortgage offices in African American residential neighborhoods of the Washington, D.C. metropolitan area in the near future, which will provide some banking services by automated teller machines (ATM's). The Mortgage Company also will expand significantly its outreach efforts to market loan products in African American neighborhoods. Promptly upon receipt of regulatory approval from the Office of Thrift Supervision, the Bank will open a branch in the Anacostia area of Washington, D.C., and the Bank expects to open additional branches in African American residential neighborhoods of Washington, D.C. and Prince George's County, Maryland during the term of this consent decree.
The Bank and Mortgage Company will invest $11,000,000.00 in the African American community of the Washington, D.C. metropolitan area during the five year consent decree period to settle the claims of the United States for the damage caused by the alleged redlining, and in furtherance of their committment to better serve this community. This investment will be undertaken through a combination of subsidized lending programs directed to Washington, D.C. metropolitan area African American neighborhoods and the opening of new bank branches and mortgage offices in these neighborhoods. Specifically, over five years the Bank and Mortgage Company will provide at least $7,000,000.00 in lending subsidies for the special home mortgage loans, which may be increased depending on the number of bank branch/mortgage office locations to be opened during the consent decree period.
Chevy Chase and the Mortgage Company adamantly deny that any act or omission on their part as alleged in the government's complaint or this consent decree as violative of federal law was motivated in any way by discriminatory intent or racial bias. The Bank and Mortgage Company have agreed to the undertakings set forth in the Consent Decree to settle the government's claims against them and because they believe the affirmative lending actions and practices described will enable them to better serve the African American community.
This Consent Decree is entered into solely for the purposes of resolving the claims against Chevy Chase and the Mortgage Company in the present proceeding involving their lending practices in the Washington, D.C. metropolitan area. The Court has not made any finding or determination that there has been a violation of the law. The entry of this Consent Decree is not to be considered an admission or finding of any violation of law by Chevy Chase or the Mortgage Company.
Since this lawsuit is being resolved without a public trial, the United States believes the public interest is furthered by explaining, in Part II of this Decree, the factual allegations of the Fair Housing Act and the Equal Credit Opportunity Act. Part III of the Decree will describe the remedial steps taken by the Bank and Mortgage Company since June of 1993. Part IV will describe the remedial plan to be implemented in the future. Part V will describe the special loan programs which will provide compensation to the alleged redlined areas. The remaining Parts describe record keeping, reporting requirements, modification of the decree, jurisdiction retention, dismissal procedures and costs.
Chevy Chase began operating from a single facility in 1969, and the B.F. Saul Mortgage Company was established as a wholly owned subsidiary in 1975. Chevy Chase has grown into the largest savings and loan association in the Washington, D.C. metropolitan area. by June of 1993, when the United States initiated its investigation, Chevy Chase operated seventy-four branches, and the Mortgage Company operated eighteen offices.
The expansion of the Bank and Mortgage Company's business has taken place in a metropolitan area with segregated living patterns. According to the 1990 Census, over 74.3 percent of the African American population of the Washington, D.C. metropolitan area resides in the District of Columbia and Prince George's County; African Americans constitute 65.1 percent of the population of the District of Columbia. African Americans are concentrated in majority African American neighborhoods. Approximately 90.3 percent of the 395,213 African American residents of the District of Columbia reside in 126 majority African American census tracts, most of which are located in the Northeast, Southeast, and Southwest quadrants of the city; the vast majority (85.9 percent) of the District's white residents live in the Northeast quadrant. Approximately 76.7 percent of the African American residents of Prince George's County live in majority African American census tracts, most of which are concentrated in the central and southern portions of the county. The Bank and Mortgage Company have marketed their loan products in a number of ways. The Community Reinvestment Act requires Chevy Chase to define the area it intends to serve, and the Bank and Mortgage Company's business intentions are further revealed through branching decisions and loan office location decisions.
The Bank and Mortgage Company also market loan products through outreach by loan offices and other employees to real estate professionals and builders, and to the community at-large by advertising. The Bank and Mortgage Company have provided instructions to loan-production employees regarding the areas to which they should devote their efforts, and also have indirectly influenced loan production in some residential areas by the manner in which the Bank and Mortgage Company advertise their products, and by employee recruitment and retention.
In defining a Community Reinvestment Act delineated area, the Bank and Mortgage Company's treatment of the District of Columbia has varied. In 1986, Chevy Chase included the District of Columbia in its delineated area although it had no branches in the District and made few loans outside of heavily white residential areas. in 1989, the institution eliminated the District of Columbia in its entirety from its delineated community, even though, by that time, it had a branch in the heavily white upper northwest area of the District. When that decision was criticized by federal regulators, the institution, in 1992, added the heavily white upper northwest corner of the District to the delineated rea. At the time the United States began its investigation, Chevy Chase was still operating under this delineation that included only the most heavily white portion of the District of Columbia. Chevy Chase did include all of Prince George's County in its delineated community.
If this lawsuit had proceeded to trial, the United States would have presented evidence from real estate professionals demonstrating that the Bank and Mortgage Company rarely solicited loan-production business from professionals serving African American residential areas, but actively solicited such business from professionals serving white residential areas. At least one witness would testify that in 1980, the company established a policy for its own employees not to seek financial transactions in the District of Columbia south of Calvert Street, N.W. or east of Connecticut Avenue, N.W. the area accepted for business is the most heavily white residential area of the District of Columbia. Exceptions to this policy were made for residential areas into which white persons were moving, such as Capitol Hill and Dupont Circle. The policy allegedly remained in effect until 1992.(1)
Loan Officers of the Bank and Mortgage Company have been paid on a commission basis, which encourages them to direct mortgage production toward residential areas with higher housing values. This policy has contributed to the overall failure to service African American residential areas, since the properties in many of the African American neighborhoods sell for a lower amount than properties in white residential areas. Prior to the initiation of the United States' investigation, the Bank and Mortgage Company had rarely, if ever, used minority-directed media to advertise the availability of mortgage loans and other products offered by the Bank and Mortgage Company.
At the time the investigation began, in June 1993, Chevy Chase was serving the public through a system of seventy-four branches. Four of the seventy-four branches operating in June 1993 were located in majority African American census tracts; one was located in majority African American census tract in Annapolis, Maryland and the three remaining branches were located in African American areas in the Washington, D.C. metropolitan area. Two of these branches located in African American census tracts in the D.C. area were acquired in purchasing another institution. The other branch, which opened in 1976, is located in a census tract that was white at the time of the 1970 census and majority African American at the time of the 1980 census. In sum, prior to the United States' notice of investigation, Chevy Chase had never opened a branch in an identifiably African American neighborhood in the Washington, D.C. metropolitan area.2 The location of mortgage offices reveal a similar pattern. The Bank and Mortgage Company did not open a mortgage office in a majority African American census tract until May of 1993.
Further evidence of redlining -- and the overall impact of the challenged practices -- is revealed by the location of properties secured by loans actually made by the Bank and Mortgage Company. Data submitted by the Bank and Mortgage Company pursuant to the Home Mortgage Disclosure Act (HMDA) show that from 1985 through 1993, the Bank and Mortgage Company made the vast bulk of their home mortgage loans in majority white census tracts of the Washington, D.C. metropolitan area; in no year was the percentage of loans in white census tracts loess than 95 percent of the total.3 During 1993, the Bank and Mortgage Company originated 6,524 mortgage loans in the Washington, D.C. metropolitan area. Of these loans, 6,206 (9531 percent) were secured by properties located in majority white census tracts, and 318 (4.9 percent) were secured by properties located in majority African American census tracts.
The Bank and Mortgage Company's loan applications also showed the same disparities. Only 5.7 percent of the loan applications received from 1988 - 1992 were from majority African American census tracts. Moreover, during 1993, the institutions received 7,311 mortgage applications from the Washington, D.C. metropolitan area. Of these applications, 6,947 (95 percent) were received from applicants in majority white census tracts, and 364 (5 percent) were received from applicants in majority African American census tracts.
The racial disparities in the Bank and Mortgage Company's loan applications and originations cannot be explained by differences in demand for mortgages in white areas and majority African American areas. The Bank and Mortgage Company's performance, when analyzed in relation to records of the total number of mortgage loans made by all providers, reveals that the Bank and Mortgage Company have a significantly greater market share in the white census tracts than in majority African American census tracts. For example, from 1990 through 1992, Chevy Chase's share of all purchase money mortgages originated in majority white census tracts ranged from 1.5 to 2.1 percent. During the same period, the institution's share of such mortgages originated in majority African American census tracts ranged from 0.2 percent to 0.4 percent. The disparities are statistically significant and cannot be explained by non-racial variations in the institutions marketing and loan solicitation practices.
The redlining practices were not limited to home financing. The vast majority of the Bank and Mortgage Company's residential construction and commercial loans also support properties and businesses in white residential areas, with little corresponding support for properties and businesses located in African American residential areas. The Bank and Mortgage Company made at least 502 residential construction and commercial loans from the late 1970's to the early 1990's in the four most populous jurisdictions in the Washington, D.C. metropolitan area (Montgomery County, Prince George's County, Fairfax County, and the District of Columbia). More than 90 percent of those loans were made in the very heavily white jurisdictions of Fairfax County and Montgomery County; 5.7 percent were made in the District of Columbia, virtually all in white ares; and 3.5 percent were made in Prince George's County.
The United States recognizes that the Bank and Mortgage Company have voluntarily taken a number of steps toward improving fair lending performance since early to mid 1993, and the receipt of the United States' investigation notice letter in June 1993.
Throughout this period the Bank and Mortgage Company have taken steps to help meet the credit needs of African American neighborhoods. Advertising efforts directed to African American neighborhoods have been increased. Advertisements have been placed in three newspapers directed to African American citizens: Capitol Spotlight, New Dimensions, and Washington Informer. The advertising initiative also has included the use of radio stations directed to the African American community. The Bank and Mortgage Company have increased efforts to solicit business from real estate professionals and builders serving African American residential areas. A recent survey in May 1994 undertaken by an independent consultant found that the Mortgage Company now has the highest name recognition amongst such real estate professionals.
In late 1993, the Mortgage Company retain an independent consultant to conduct a mystery shopper program to test for racial discrimination and no discrimination in the treatment of applicants was reported.
In January 1994, the Mortgage Company revised the method of compensating loan officers in an effort to increase loan originations in residential areas with lower housing values. The revised method provides for a commission payment of 10 basis points more than the standard commission of 50 basis points for all loans of $60,000.00 or less in the Washington, D.C. metropolitan area. In addition, the Mortgage Company has established a special salary plus commission compensation structure for four Washington, D.C. originators. The Mortgage Company has also increased substantially the number of African American employees in loan-production positions.
In February 1994, Chevy Chase revised its Community Reinvestment Act delineated community so as to include the District of Columbia in its entirety. Chevy Chase has opened three new branches in African American residential areas. The location of the new branches and the date of openings are as follows:
The B.F. Saul Mortgage Company has opened four loan offices serving African American residential areas. The location of the new offices and the date of opening are as follows:
Chevy Chase and the Mortgage Company have increased their lending initiatives in the Washington, D.C. metropolitan area. In March 1993, they offered a $25,000,000.00 special lending program below market fixed rate mortgages to low and moderate income individuals throughout the Washington, D.C. metropolitan area. This fund was fully subscribed within 60 days. In December 1993, they committed $20,000,000.00 to the D.C. Community Development Fund for home buyers and invested $30,000,000.00 in the Washington, D.C. advertising campaign to publicize the program. In December 1993, they committed $1,000,000.00 to the $4,500,000.00 Prince George's County Revitalization Loan Fund that provides loans to small businesses in Prince George's County. In May 1994, they announced an addition of $100,000,000.00 to the Community Development Loan Fund for low-and-moderate income borrowers, and $50,000,000.00 in support revenue bond programs to government jurisdictions which include for the first time Prince George's County and the District of Columbia Mortgage Revenue Bond Program.
The Mortgage Company has also increased significantly the number of applications and home mortgage loan originations from African Americans during 1993. Specifically, between 1991 and 1993 the Mortgage Company increased the number of home mortgage loan applications received from African American borrowers from 249 to 1074 and increased the number of home mortgage loans made to such borrowers from 162 to 884.
In addition, Chevy Chase is aggressive in offering other types of credit to the African American communities in the Washington, D.C. metropolitan area. Chevy Chase's commitment to lending to African American borrowers is exemplified by the bank's credit card lending record, which shows that the bank has aggressively made credit card loans available to residents of majority African American census tracts in its community. Indeed, Chevy Chase has the second highest market share in credit card lending to lower income and minority groups of any lender in the Washington, D.C. metropolitan area.
The United States agrees that the above-described actions are positive remedial steps that address the issues which were the subject of the United States' investigation and complaint. These successful actions are hereby incorporated by reference in the remedial plan described in Part IV.
Defendant Chevy Chase Federal Savings Bank and defendant B.F. Saul Mortgage Company, and all officials, employees, agents and successors of the Bank and Mortgage Company are hereby enjoined from engaging in any act or practice that discriminates on the basis of race in any aspect of residential real estate-related transactions or in the extension of other types of credit. The Bank and Mortgage Company shall take the steps necessary to ensure racial fairness in the marketing, solicitation, and processing of home mortgages, and other forms of financing, such as commercial loans and residential construction loans, and other credit offered by the institutions, and in the provisions of services or facilities in connection with any such credit transactions. The Bank and Mortgage Company are further enjoined from imposing, on the basis of race, difference terms or conditions for the availability of credit. Fair Housing Act, 42 U.S.C. §§ 3604 and 3605; Equal Credit Opportunity Act, 15 U.S.C. § 1691(a)(1).
As noted in Part III, in February 1994 Chevy Chase revised its delineated territory to include the District of Columbia, in its entirety. During the period that the Consent Decree remains in effect, Chevy Chase will continue to include all portions of the District of Columbia and Prince George's County, Maryland in its delineated territory.
The Bank and Mortgage Company shall implement an aggressive marketing program designed to improve in meeting the credit needs of African American residential areas of the Washington, D.C. metropolitan area. The Bank and Mortgage Company will take all reasonable steps to ensure that home mortgage loans are marketed and made available in African American residential areas to an extent comparable to white residential areas. The success of the remedial plan will be judged by its effectiveness in achieving a market share of home mortgage loans in majority African American census tracts that is reasonably comparable to the Bank and Mortgage Company's market share in white residential areas during the period of time that this decree is in effect. This provision should not be interpreted as requiring the Bank and Mortgage Company to make bad loans. Rather, the provision requires aggressive marketing and outreach a a remedy for the alleged past discrimination, and envisions that the expected applicants will be treated without regard to race. So long as all reasonable steps have been taken to achieve this goal, the Bank and Mortgage Company will be considered to be in compliance with this provision of the decree.
The Bank and Mortgage Company will retain discretion to implement other actions that they believe appropriate to achieve the remedial goal, without prior approval of the United States or this Court except as otherwise provided in this order. All provisions of the Consent Decree are to be implemented consistent with the safety and soundness of the institution. The initial plan of the Bank and Mortgage Company for achieving the remedial goal is as follows:
In addition to the new branches and mortgages loan offices described in part III, the Bank and Mortgage Company will take further action to provide banking and lending services to African American communities. Subject to the approval, where necessary, of the Office of Thrift Supervision, the Bank and Mortgage Company will open additional bank branch and/or mortgage office locations in African American neighborhoods in the Washington, D.C. metropolitan area during the consent decree period. The mortgage offices will effectuate home mortgage lending in the African American communities in which they are established and will also provide certain banking services through automated teller machines (ATM's). Specifically, the Bank and Mortgage Company already have opened a branch/mortgage office on Riggs Road and plan to open a similar facility in the Anacostia section of Southeast Washington, D.C. promptly upon receipt of regulatory approval from the Office of Thrift Supervision. The Bank will exercise its best efforts to open this branch by year end 1994. In addition, the Mortgage Company will open a mortgage office in or around the Seat Pleasant area of Prince George's County, Maryland by June 1995. Additionally, the Mortgage Company will open another mortgage office ina majority African American census tract in D.C., outside of the Northwest quadrant, by January 1996.
The bank shall continue to evaluate sites for branches in majority African American census tracts that the United States contends were redlined. By March 1, 1995, the Bank shall present its evaluation of branching possibilities to the United States and the parties shall jointly consider whether the overall goals of the decree can be better served by additional branches or by utilizing in the special loan fund money that would have been committed to new branches.4
The prior approval of counsel for the United States shall be obtained for the precise location of the mortgage offices and branches. If the United States fails to object to a location within thirty days of receipt of a request for approval, the request shall be deemed to be approved. Any branch the bank seeks to open pursuant to this decree shall be subject to the normal regulatory approval of the Office of Thrift Supervision. The new branches and mortgage offices opened pursuant to the terms of this decree shall remain open during the like of this decree.
The Bank and Mortgage Company will follow an objective set of criteria to evaluate future branch and mortgage office openings, closings, and other significant changes in services, and these criteria will incorporate the Bank and Mortgage Company's Community Reinvestment Act obligations, as well as the remedial design of this decree. The institutions will pay particular attention to how any proposed changes would affect the Bank and Mortgage Company's ability to meet the credit needs of low-and-moderate-income neighborhoods, especially neighborhoods in predominantly African American census tracts. The Bank and Mortgage Company will promptly provide to counsel for the United States a copy of any applications or notices to open or close any branches or mortgage offices during the period in which this decree is in effect.
The Bank and Mortgage Company will further augment an advertising program, as described in Part III, designed to attract qualified applicants for home mortgages from African American residential areas of its community, as defined pursuant to the Community Reinvestment Act. The advertising program will include special provisions to target residents of predominantly African American neighborhoods.
The Mortgage Company will conduct additional ascertainment efforts to further understand the home mortgage credit needs of the African American community. In this regard, representatives of the lender will meet each year with members of at least three African American community or civil groups to examine current Mortgage Company loan products, services, and advertising, and discuss ideas for improvements if improvements are necessary.5
The Bank and Mortgage Company will continue their efforts to recruit African American candidates for positions with the companies with particular emphasis on loan-production positions, such as Loan Officer, Underwriter, Loan Processor, Staff Appraiser, Assistant Branch Manager, and Branch Manager.
The Bank and Mortgage Company will invest $11,000,000.00 in the neighborhoods that the United States contends were redlined. This investment will satisfy the claim of the United States for monetary damages, and the monetary remedy will be enforceable by the United States as would be any other court order or judgement.
At least $7,000,000.00 of the investment will be provided in the form of special mortgage loans offered to residents of majority African American census tracts that the United States contends were redlined. The financing will be offered at interest rates, or on terms, that are more advantageous to the borrower than normally would be provided, and thereby the lender will subsidize each transaction. Each $1,000,000.00 of subsidy provided by the Mortgage Company will provide approximately $20,000,000.00 in special financing for the community.
Persons living in the defined census tracts who desire to participate in the financing program for home mortgage loans up to $203,150.00 will, if they otherwise qualify for financing, have an option of (1) obtaining a mortgage loan (including both purchase money and refinancing) at an interest rate that is one percent below the rate that the Bank and Mortgage Company would charge or (2) a one-half percent below-market interest rate and a grant in the amount of two percent of the loan which would be applied to the down payment requirement, and a $400.00 wavier of fees.
The Mortgage Company will underwrite the loans for this special program accordance with the underwriting guidelines of Fannie Mae's enhanced FannieNeighbors with Community Home Buyers Program (including the 3/2 Option) or other programs with similarly flexible underwriting guidelines. FannieNeighbors Mortgages are conventional, fixed-rate mortgages secured by single family residences in designated neighborhoods. The program offers various flexibilities that are designed to allow a minimum down payment of five percent; the borrower is permitted to obtain two percent of the down payment through gifts, thus necessitating that the borrower provide only three percent from his or her own funds. Under this program Fannie Mae will waive the standard requirement that the borrower have reserves equal to two mortgage payments at the time of closing. The program also allows closing cost flexibilities. Any initially rejected applications will be reviewed by the Mortgage Company's Second Review Committee.
The precise amount of the subsidy to be provided by the Mortgage Company pursuant to this special program will be related to the number of branches opened. For planning purposes, however, the Bank and Mortgage Company shall make an initial investment of $7,000,000.00 over the five year period of the consent decree, thereby allocating approximately $28,000,000.00 in special loan products for each of the five years. The total monetary amount will be made available for loans secured by properties in defined census tracts of the District of Columbia and Prince George's County, Maryland. The money will be apportioned between the District and Prince George's County in relation to the United States' estimate of the manner in which the alleged underlying violation affected each community. the initial estimated distribution will be as follows:
For the duration of this program, the balance from each year's fund which has not been loaned by the anniversary date of the program, will be added to the next year's fund. If by the fourth anniversary of this decree, the Bank has not completed its projected investment in bank branches/mortgage offices, the additional funds will be supplied in the final year of the special program so as to ensure that the $11,000,000.00 investment has been fully made within the consent period. If, at the end of five years, that amount has not been fully invested in the community, the Bank and Mortgage Company shall make a contribution to a charitable or community organization(s) dedicated to the improvement of housing or home ownership in the targeted census tracts in an amount equal to the remaining balance in the compensation program.
Copies of all notices, correspondence, reports, or documents required to be provided under this Consent Decree will be mailed to the following addresses:
This Consent Decree may be modified by written agreement of the parties.
The Court will retain jurisdiction for a period of five years from the date hereinafter affixed. At the conclusion of this five year period the Consent Decree shall expire without any action by any party thereto. The United States may petition the Court to extend the court's jurisdiction if it has a reasonable basis for concluding that the remedial goals for the decree have not been achieved and that the Bank and Mortgage Company have not taken all reasonable steps to achieve the remedial goals. The parties to the decree will endeavor in good faith to resolve informally any differences regarding interpretation and compliance with this Decree prior to bringing such matters to the Court for resolution.
Each party to this litigation will bear its own costs.
It is so ORDERED, ADJUDGED, and DECREED this 22d day of August, 1994
The undersigned apply for and consent to the entry of this Order:
FOR THE UNITED STATES:
JANET RENO
Attorney General
DEVAL L. PATRICK
Assistant Attorney General
PAUL F. HANCOCK
Chief, Housing and Civil Enforcement Section
Bar 159327
VALERIE R. O'BRIAN
FREDERICK B. RIVERA
Attorneys, Housing and Civil Enforcement Section
Civil Rights Division
U.S. Department of Justice
P.O. Box 65998
Washington, D.C. 20035-5998
(202)514-4751
ERIC H. HOLDER, JR.
United States Attorney
JOHN D. BATES
Assistant U.S. Attorney
D.C. bar #934927
MADELYN E. JOHNSON
Assistant U.S. Attorney
D.C. Bar 3292318
FOR CHEVY CHASE FEDERAL SAVINGS BANK
AND B.F. SAUL MORTGAGE COMPANY:
ROBERT S. BENNETT
Bar #112987
WILLIAM J. SWEET, JR.
Bar #256875
ANDREW L. SANDLER
Bar #387825
HEIDI L. MASON
Bar #436090
SKADDEN, ARPS, SLATE & FLOM
1440 New York Avenue, N.W.
Washington, D.C. 20005
(202)371-7000
1 The Bank and Mortgage Company note that during the period 1988-1992, the Mortgage Company extended 641 loans for $139.4 million to residents of the District of Columbia within the geographic are south of Calvert Street and east of Connecticut Avenue.
2 In 1989 and 1990 Chevy Chase applied to open a branch in Fort Washington, Maryland. According to the 1990 Census the population in the census tract in which Chevy Chase planned to open the branch was 52% African American
3 White census tracts are defined as those tracts where African Americans do not constitute 50 percent or more of the population. Minorities may constitute a majority in some such census tracts.
4 The Bank and Mortgage Company may also seek the consent of the United States to a delay of the scheduled opening of a mortgage office if they plan to incorporate a mortgage office with a branch opening.
5 While this settlement provides remedies for African American communities, the defendants will ascertain the home mortgage credit needs of other minority communities in the Washington metropolitan area and aggressively solicit and originate home mortgage loans in those communities.