Housing And Civil Enforcement Cases 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,

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.