Sustainable Homeownership

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Adkins v Morgan Stanley: Expert reports support reverse-redlining allegations in Detroit.

Policy Analysis
Policy Briefs, Reports and Press Releases

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Litigation & Amicus Briefs

  • Property Casualty Insurers Assoc. of America v. Donovan (N.D. Ill. 2014). The NCLC, along with 12 civil rights and grassroots organizations, filed an amicus brief in an action brought by the insurance industry challenging a rule formalized by HUD in 2013 that recognized disparate impact liability under the Fair Housing Act. The insurance industry sought to invalidate the rule's application to the homeowner's insurance industry. Examining the history and persistence of insurance redlining, the organizations argued that application of the rule is vital to ensuring fairness in the market for homeowner's insurance and is consistent with sound actuarial practices, and other business related practices.
    Decision: The U.S. District Court, Northern District of Illinois decision dismissed the industry's claim under McCarran-Ferguson for lack of subject matter jurisdiction as that claim was not ripe for judicial review and also rejected the industry's challenge to HUD's adoption, in the rule, of a three-step burden-shifting approach. However, the court did determine that HUD did not adequately consider substantive comments submitted by the industry prior to adoption of the rule and remanded the case to HUD to provide further reasoned explanations of the rule's impact under McCarran-Ferguson, the filed-rate doctrine, and its general effects on the insurance industry.

    American Insurance Assoc. v. U.S. Department of Housing and Urban Dev. (D.C. 2014). The NCLC joined the NAACP Legal Defense and Educational Fund, American Civil Liberties Union (ACLU), and the National Community Reinvestment Coalition in an amicus brief in support of HUD in an action brought by homeowner's insurance associations seeking to invalidate the agency's issuance of a rule which codified its long-standing interpretation that the Fair Housing Act prohibits disparate impact discrimination. Noting the history and persistence of insurance redlining, NCLC argued that this pre-enforcement challenge to the rule should be dismissed on jurisdictional grounds without reaching the merits.
  • Beverly Adkins et al. v Morgan Stanley: NCLC is co-counsel for African American plaintiffs in a landmark lawsuit brought against Morgan Stanley. The lawsuit claims that the Defendant violated federal civil rights laws, the Fair Housing Act and the Equal Credit Opportunity Act as well as state laws by adopting mortgage securitization policies that caused predatory lending and adversely impacted African Americans in the Detroit, Michigan area.
    • The Adkins v. Morgan Stanley lawsuit asserts that Morgan Stanley pursued mortgage securitization policies and practices that, through their funding of now-defunct mortgage lender New Century Mortgage Company, resulted in a significant discriminatory impact on African-American borrowers in the Detroit metropolitan area, flooding the already highly segregated community with toxic, combined-risk subprime loans in the lead-up to the collapse of the housing market in 2008. Read the expert reports submitted in support of the reverse red-lining allegations made in the case and NCLC's issue brief detailing key findings by the experts.
      NCLC Issue Brief
      Ayers Expert Report
      McCoy Expert Report
      Oliver Expert Report
      Segrue Expert Report

  • Subprime Mortgage Discrimination: National class action cases brought under the Fair Housing Act and the Equal Credit Opportunity Act against certain subprime mortgage lenders
  • Magner v. Gallaher, U.S. Supreme Court No.1032
    NCLC has joined an amicus brief prepared by the Lawyers' Committee for Civil Rights Under Law with other national civil rights organizations arguing that the Fair Housing Act properly is interpreted to authorize disparate impact claims and that the Eight Circuit applied the correct burden shifting approach to litigating disparate impact claims consistent with the way Title VII cases are litigated and HUD's proposed regulation governing this subject. Brief. NCLC also consulted with the ACLU (which cites NCLC's Credit Discrimination manual and references NCLC's sub-prime mortgage discrimination disparate impact cases brought under the Fair Housing Act) and the Department of Justice with regards to the preparation of the amicus briefs they separately prepared and filed with the Supreme Court in the appeal. Briefs.