Housing Section Documents
R. ALEXANDER ACOSTA
Assistant Attorney General
STEVEN H. ROSENBAUM
KEISHA DAWN BELL
ANTHONY F. ARCHEVAL
Attorneys
Housing and Civil Enforcement Section-G St.
Civil Rights Division
United States Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530
tel: (202) 305-4066
fax: (202) 514-1116
District of Columbia Bar No. 468436
Anthony.F.Archeval@usdoj.gov
PAUL K. CHARLTON
United States Attorney
United States Attorney's Office
Two Renaissance Square, Suite 1200
Phoenix, AZ 85004-4408
UNITED STATES DISTRICT COURT
DISTRICT OF ARIZONA
United States of America,
Plaintiff,
No.
COMPLAINT
The Mortgage Super Center, Inc.
Defendant.
______________________________________
The United States of America alleges:
1. This action is brought by the United States to enforce a
conciliation agreement entered into pursuant to 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.
2. This Court has jurisdiction over this action under
28 U.S.C. § 1331, 28 U.S.C. § 1345, and 42 U.S.C. § 3614(b)(2).
Venue is proper under 28 U.S.C. § 1391(b).
3. At all times relevant to this action, Defendant The
Mortgage Super Center, Inc. has been an Arizona corporation doing
business in the District of Arizona.
4. The house located at 377 W. Anza, Nogales, Arizona is a
"dwelling" within the meaning of 42 U.S.C. § 3602(b).
5. On February 21, 2003, William and Graciela Keymolent
filed a complaint with the United States Department of Housing
and Urban Development ("HUD") alleging that Defendant The
Mortgage Super Center and Nogales Realty had discriminated
against them on the basis of national origin by engaging in
discriminatory financing in a residential real-estate transaction
(42 U.S.C. § 3605).
6. After the commencement of the investigation by HUD, but
before HUD reached a determination of the merits of the
Keymolents' complaint, the parties entered into a Conciliation
Agreement through the HUD conciliation process as provided for in
42 U.S.C. § 3610(b). The Conciliation Agreement became effective
on June 16, 2004, when it was approved by HUD. A true and
accurate copy of the executed Conciliation Agreement is attached
as Exhibit A.
7. The Conciliation Agreement provided that Defendant The
Mortgage Super Center, Inc. and Nogales Realty, Inc.
(collectively referred to as "Companies") must pay Complainants
William and Graciela Keymolent the sum of $1,000.00 within 10
days of the effective date of the agreement, or by June 26, 2004.
The Conciliation Agreement required Defendant The Mortgage Super
Center to refinance the Complainants' first and second mortgages
as one loan with a 30-year fixed rate of interest (at prevailing
market rates), conditional upon Complainants' eligibility, within
10 days of the effective date of the agreement, or by June 26,
2004. The Conciliation Agreement provided that the new fixed
rate of interest shall not exceed the Complainants' current
interest rate of 9.125%. The Conciliation Agreement further
required Defendant The Mortgage Super Center to waive the
pre-payment penalty and closing costs associated with refinancing
of the mortgages. Finally, the Conciliation Agreement required
the Companies to attend fair housing training with a focus on
fair lending practices, within 60-days of the effective date of
the Conciliation Agreement, or by August 15, 2004.
8. Subject to the Companies' performance of their
obligations under the Conciliation Agreement, Complainants agreed
to waive, release, and covenant not to sue The Mortgage Super
Center, Inc. and Nogales Realty, Inc. with respect to any matters
that were or might have been alleged as charges filed with HUD.
9. On or about July 28, 2004, Nogales Realty, Inc. paid its
share of the $1,000.00 award to Complainants, which amounted to
$500.00.
10. Defendant The Mortgage Super Center, Inc. has breached
the Conciliation Agreement by failing to pay its share of the
$1,000.00 monetary award to Complainants William and Graciela
Keymolent in a timely manner, by failing to refinance the
Complainants' first and second mortgages as one loan at a 30-year
fixed rate of interest, and by failing to provide verification of
its compliance with the Agreement's attendance of fair housing
training provision.
11. On or about July 15, 2004, HUD notified the Defendant
concerning its obligations pursuant to the Conciliation
Agreement. Despite this effort, Defendant remained
non-compliant.
12. On or about August 6, 2004, HUD sent a second notice to
Defendant regarding its non-compliance and instructed Defendant
to respond within 10 days. Defendant failed to respond to HUD
and did not make the required payment to Complainants, nor did it
refinance Complainants mortgages or comply with the fair housing
training provision of the Conciliation Agreement.
13. On September 24, 2004, HUD referred this matter to the
Attorney General for enforcement of the Conciliation Agreement
pursuant to 42 U.S.C. §§ 3610(c) and 3614(b)(2).
14. On or about October, 2004, Complainants received a
letter from Defendant stating that it had terminated
Complainants' loan application.
15. Complainants William and Graciela Keymolent are
"aggrieved parties" as defined in 42 U.S.C. § 3602(i), and have
suffered injuries as a result of Defendant's breach of the
Conciliation Agreement.
16. Defendant's breach of the Conciliation Agreement was
willful and in bad faith.
WHEREFORE, the United States prays that this Court:
1. Enforce the Conciliation Agreement and require that
Defendant immediately pay William and Graciela Keymolent $500.00
by sending a certified check or money order to the United States,
immediately commence the refinancing of Complainants' first and
second mortgage pursuant to paragraph 14 of the Conciliation
Agreement, and immediately require Defendant to attend fair
housing training, with a focus on fair lending practices,
pursuant to 42 U.S.C. § 3614(d)(1)(A);
2. Enjoin Defendants from violating the Fair Housing Act so
as to assure the full enjoyment of rights granted by the Act,
pursuant to 42 U.S.C. § 3614(d)(1)(A);
3. Award monetary damages to William and Graciela
Keymolent, pursuant to 42 U.S.C. § 3614(d)(1)(B);
4. Assess a civil penalty against Defendant to vindicate
the public interest, pursuant to 42 U.S.C. § 3614(d)(1)(C);
5. Enjoin Defendant from any further failure to comply with
the Conciliation Agreement in the future; and
6. Award such additional relief as the interests of justice
may require.
