Case: 4:11-cv-01086 Doc. #: 1 Filed: 06/16/11 Page: 1 of 11 PageID #: 1

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MISSIOURl- EASTERN DNISION

UNITED STATES OF AMERICA,

)

Plaintiff,

)

)

CNIL ACTION NO.

)

v.

)

)

MIDWESTBANKCENTRE

)

)

Defendant.

)

)

COMPLAINT The United States of America alleges:

1. This action is brought by the United States to enforce the provisions of the Fair

Housing Act, 42 U.S.C. §§ 3601 -3619, and the Equal Credit Opportunity Act, 15 U.s.C.

§§ 1691-1691f.

2. This Court has jurisdiction oftrus action pursuant to 28 U .S.C. § 1345,42 U.S.C.

§ 3614, and 15 U.s.C. § 1691e(h). Venue is appropriate pursuant to 28 U.S.C. § 1391.

3. Defendant Midwest BankCentre ("Midwest" or "Bank") is a wholly-owned

subsidiary of Midwest BankCentre, Inc., a fmancial holding company headquartered in 8t. Louis

County, Missouri. Th~ Bank's principal office is in 8t. Louis County, Missouri. Midwest offers

the traditional services of a financial depository and lending institution, including the receipt of

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Case: 4:11-cv-01086 Doc. #: 1 Filed: 06/16/11 Page: 2 of 11 PageID #: 2
monetary deposits and the financing of residential housing and commercial loans primarily in the St. Louis, Missouri metropolitan area As of December 31, 2009, Midwest had assets totaling just over $1.1 billion. Midwest is subject to the regulatory authority of the Federal Reserve System.
4. Midwest has seven full·service branches and four partial·service branches in the St. Louis, Missouri metropolitan area. Midwest's full·service branches offer deposit products and services and loan products, including home·mortgage lending. The four partial·service branches, which offer only deposit services, are located within retirement communities and are open only to residents of those retirement communities. From March 2008, through September
an 2010, Midwest operated additional full·service branch in Rockford, illinoi s, approximately
350 miles from the City of St. Louis. 5. Midwest's mortgage lending activities in the St. Louis metropolitan are almost
exclusively confined to the Missouri portion of the St. Louis Metropolitan Statistical Area (MSA). The Missouri portion of the St. Louis MSA is comprised of Crawford, Franklin, Jefferson, Lincoln, S1. Charles, S1. Louis and Warren counties as well as the City of St. Louis.
6. Midwest is subject to the federal1aws governing fair lending, including the Fair Housing Act and the Equa1 Credit Opportunity Act and their respective implementing regulations, the fair housing regulations of the Department of Housing and Urban Development,
24 C.F.R. § 100.1, et seq., and Regulation B of the Board of Governors of the Federal Reserve System, 12 C.F.R. § 202.1, et seq. The Fair Housing Act and the Equal Credit Opportunity Act
prohibit financial institutions from, inter alia, discriminating on the basis of race and color in their home·mortgage lending practices.

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7. On August 14, 2009, the Department of Justice infonned the defendant that it had initiated an investigation into potential lending discrimination by the Bank, including whether Midwest had discriminated .on the basis of race in providing lending services to predominantly African-American communities in the S1. Louis metropolitan area. The Department of Justice's investigation stenuned from allegations of lending discrimination that the Metropolitan 8t. Louis Equal Housing Opportunity Council had brought to the attention of the Department earlier in 2009.
8. Beginning·in 2009, the Federal Reserve System initiated a consumer compliance examination of Midwest. During the course of its examination, the Federal Reserve System analyzed lending data from 2006-2008 related to Midwest's applications and originations in the City ofSt. Louis and St. Louis, St. Charles and Jefferson Counties. Based on the information gathered during its examination, the Federal Reserve concluded that there was reason to believe that Midwest engaged in a pattern or practice of discrimination in violation.of the Equal Credit Opportunity Act and the Fair Housing Act. Specifically, the Federal Reserve System determined that there was reason to believe that Midwest engaged in redlining in violation of Section 701(a) of the Equal Credit Opportunity Act and the Fair Housing Act, 42 U.S.C. § 3605(a).
9. Pursuant to 15 U.S.C. § 1691e(g), the Board of Governors of the Federal Reserve
System referred the matter to the Attorney General for appropriate enforcement action on October 14, 2010, following its determination as described in paragraph 8.
10. According to the 2000 Census, the Missouri portion of the St. Louis MSA had a total population of approximately 2.03 million persons, of whom 76% were non-Hispanic white (approximately 1.53 million) and 19% were African-American (approximately 378,000). The

Case: 4:11-cv-01086 Doc. #: 1 Filed: 06/16/11 Page: 4 of 11 PageID #: 4
MSA's African-American population is mostly concentrated in the northern part of the City of S1. Louis and the neighboring northeastern portion of St. Louis County.
11 . In operating and expanding the scope of its business over time, defendant has acted to meet the credit needs for residential real estate-related loans in predominantly white residential census tracts (with a population greater than 50% white) in the Missouri portion of the St. Louis MSA, and has avoided serving the similar credit needs of majority-black census tracts.
12. Defendant has engaged in a race-based pattern of locating branch offices. It has located branch offices in a manner designed to serve the banking and credit needs of the residents of majority-white census tracts, but not those of residents of majority-black census tracts.
13. Since 1990, Midwest bas opened or relocated six full-service branches in majority-white census tracts in the St. Louis MSA, and none in majority-black census tracts. Since 1995, Midwest opened its four partial-service branches in retirement communities with majority-white populations. At present, al1 seven of Midwest's full-service branches in the St. Louis area are located in majority-white census tracts. See Map attached as Exhibit A.
14. In addition to its branches in the St. Louis MSA, in 2007, Midwest opened a loan production office in Rockford, Illinois that became a full -service branch in 2008. The population of the Rockford MSA is 85% white. Midwest closed its branch in Rockford, TIlinois in late-
20 10.
15. The unlawful consideration of race in the business practices of defendant is also evident from the assessment areas that defendant has established and maintained pursuant to the Community Reinvestment Act ("CRA"). Pursuant to statutory direction, the Board of Governors of the Federal Reserve System has promulgated regulations to implement the CRA, lic.F.R.
1_ _

Case: 4:11-cv-01086 Doc. #: 1 Filed: 06/16/11 Page: 5 of 11 PageID #: 5
§ 228 ("Reg. BB"). Under Reg. BB, as amended in 1997, a bank's assessment area ordinarily will consist of one or more metropolitan areas or contiguous political subdivisions, 12 C.F.R. § 228.4 I(c), unless that area would be extremely large, of unusual configuration, or divided by significant geographic barriers, 12 C.F.R. § 228.41(d). Reg. BB further provides that if a bank's assessment area does not include entire political jurisdictions, its assessment area may not reflect illegal discrimination. 12 C.F.R. § 228.4I(e).
16. Further, Midwest had delineated a CRA assessment area within the 8t. Louis MSA that included most of St. Louis County, portions ofSt. Charles and 8t. Jefferson counties, and the southern part of the City ofSt. Louis. The assessment area excluded the northern part of the City of 81. Louis as well as the northeast comer ofSt Louis County. Midwest's assessment area formed a virtual horseshoe around the majority-black census tracts in the City of St Louis. See Map attached as Exhibit A. Specifically, Midwest's CRA assessment area excluded 47 of the 60 majority-black census tracts within the City ofSt Louis. In 2010, following discussions with the Federal Reserve System, Midwest modified its CRA assessment area to include the entire City of St. Louis and all of St. Louis, St. Charles, and Jefferson Counties.
17. Since at least 2004, Midwest knew or should have known that it was underserving majority-minority communities. For three consecutive years beginning in 2004, Midwest employed a consulting firm to analyze its IDvIDA data for compliance with CRA and fair housing requirements. Each of the resulting annual reports stated that Midwest was making a lower portion of its HMDA-reportable loans in majority-minority census tracts than was its peer group, which consisted of seven lenders apparently selected by Midwest andlor its consultant, Phillips and Associates. In 2004, Midwest was informed that while its peer group had made 6.5% of its H?vIDA-reportable loans in minority census tracts, Midwest had made only

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1.7% of its IDvIDA-reportable loans in those census tracts. In 2005, Midwest was informed that its peer group had made 7.8% of its HMDA-reportable loans in minority census tracts, while Midwest had made only 1.4% of such loans in those census tracts. In 2006, Midwest was informed that while its peer group had made 8.9% of its HMDA-reportable loans in minority census tracts, Midwest had made only 4.9% of its HMDA-reportable loans in those census tracts.
18. Until at least late-2009, after being put on notice of the Department of Justice's investigation, Midwest took no affirmative steps to market its mortgage lending services to black borrowers or in majority-black census tracts.
19. The policies and practices of defendant, described herein, have served majoritywhite communities to a significantly greater extent than majority-black communities, as further demonstrated by defendant's actual residential lending activity over time.
20. Statistical analyses of the defendant's residential real estate-related loan applications and originations for each year from 2004 to 2008. and for the five years combined, show that the defendant served the credit needs of the residents of majority-white census tracts in the Missouri portion of the S1. Louis MSA to a significantly greater extent than it served the residential real estate-related credit needs of the residents of majority-black census tracts. During that time, there were statistically significant disparities with respect the defendant's residential real estate lending activity when compared with similar lenders. Those disparities remained significant throughout the analyzed five-year period.
21. From 2004-2008, the defendant generated 2,250 single-family (defined by HMDA as dwellings with 1-4 units) residential loan appi.ications in the St. Louis MSA that were

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required to be reported to its re~lator pursuant to HMDA, I 28 U.S.C. §§ 2801-2810. Only 61, or 2.7%, of these applications were received from majority-black tracts. During that same time period, comparable lenders in the St. Louis MSA received 10.7% of their residential real estaterelated loan applications from majority-black census tracts - almost four times the rate of Midwest applications. These results show a statistically significant failure by Midwest to provide loan services and draw applications from majority-black tracts on an equal basis with majority-white census tracts.
22. Of the 1,861 single-family residential loans Midwest originated in the St. Louis MSA from 2004-2008, only 42 or 2.3% were secured by residential property located in majority-
black census tracts. See Map of Origination!), attached as Exhibit C. In contrast, Midwest's
peer group lenders in the St. Louis MSA originated 11 3,084 single-family residential loans from 2004-2008, and 8.6% of those loans were secured by residential property located in majorityblack tracts. These percentage figures are more than three times that of Midwest Bank, and show a statistically significant fai lure by the defendant to provide loan services and draw applications from majority-black tracts.
23. The totality of defendant's policies and practices described herein constitutes the redlining of majority-black areas of the St. Louis MSA for defendant's home lending business. Defendant's policies and practices are intended to deny and discourage, or have the effect of denying or discouraging, an equal opportunity to the residents of the majority-black neighborhoods of the St. Louis MSA, on account of the racial composition of those
I This includes all loan applications that Midwest reported on its HMDA reports, as well as loan applications that Midwest originated and forwarded to DAS or subprime lenders to be underwritten. See Map of Applications, attached as Exhibit B, which illustrates the locations of the residential properties to be secured by these loan applications.
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neighborhoods, to obtain residential real estate-related loans. These policies and practices are not justified by business necessity or legitimate business considerations.
24. Defendant's actions as alleged herein constitute: a. Discrimination on the basis of race or color in making available, or in the terms or conditions ofresidential real estate-related transactions, in violation of the Fair Housing Act, 42 u.s.C. § 3605(a); b. The making unavailable or denial of dwellings to persons because of race or color in violation of the Fair Housing Act, 42 U.S.C. § 3604(a); c. Discrimination on the basis of race or color in the terms, conditions, or privileges of the provision of services or facilities in connection with the sale or rental of dwellings, in violation of the Fair Housing Act, 42 U.S.C. § 3604(b); and d. Discrimination against applicants with respect to credit transactions, on the basis of race or color, in violation of the Equal Credit Opportunity Act, 15 U.S.C. § 1691(a)(I). 25. Defendant's policies and practices as alleged herein constitute: a. A pattern or practice of resistance to the full enjoyment of rights secured by the Fair Housing Act, 42 U.S.C. §§ 3601 el seq., and the Equal Credit Opportunity Act, 15 U.S.C. § 1691 e(h); and b. A denial of rights granted by the Fair Housing Act to a group of persons that raises an issue of general public importance. 26. Persons who have been victims of defendant's discriminatory policies and practices are aggrieved persons as defmed in 42 U.S.C. § 3602(i) and as described in the Equal Credit Opportunity Act, 15 U.S.C. § 1691(e)(i), and have suffered damages as a result of

Case: 4:11-cv-01086 Doc. #: 1 Filed: 06/16/11 Page: 9 of 11 PageID #: 9
defendant's conduct in violation of both the Fair Housing and the Equal Credit Opportunity Acts, as described herein.
27. The discriminatory policies and practices of defendant have been intentional and willful, and implemented with reckless disregard for the rights of African·American borrowers.
WHEREFORE, the United States prays that the Court enter an ORDER that: (I) Declares that the policies and practices of defendant constitute a violation of the Fair Housing Act and the Equal Credit Opportunity Act; (2) Enjoins defendant, its agents, employees, and successors,.and all other persons in active concert or participation with defendant, from:
(A) Discriminating on account of race or color in any aspect of their lending business practices;
(B) Failing or refusing to take such affinnative steps as may be necessary to restore, as nearly as practicable, the victims of defendant's unlawful practices to the position they would be in but for the discriminatory conduct;
(C) Failing or refusing to take such affirmative steps as may be necessary to prevent the recurrence of any discriminatory conduct in the future and to eliminate, to the extent practicable, the effects of defendant's unlawful practices, and providing policies and procedures to ensure all segments of defendant's market areas are served without regard to prohibited characteristics; (3) Awards monetary damages to all the victims of defendant's discriminatory
policies and practices for the injuries caused by defendant, pursuant to 42 U.S.C. § 3614(d)(I)(B) and 15 U.S.C. § 1691e(h); and
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(4) Assesses a civil penalty against defendant in an amount authorized by 42 U.S.C. § 3614(d)(1)(C), in order to vindicate the public interest.

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The United. States further prays for such additional. relief as the interes~ ofjustice may '

require.

1

Ito Datcd:j"')N>

,2011

,

1

Respectfully submitted,

I

ERlCHOIDER

a l.~/ . Attorney General

,, .

RlCHARD G. CALLAHAN United States Attorney

TIIOMAS E. P1lRBZY .

Assistant Attorney General
~~

I
i
I ,

Chiet Housing and Civil Enforcement

Section

Civil Rights Division

~~ 1>.NERUND :Sf'f-7(J, 9g Assistant United States Attorney ThoDlas F. Eaf-eton U.S. Courthouse 111 South' 10 Street, Room 20.333
Sl Louis,MO 63102

gM~ Deputy Chicf SARA NILES Attorney Housing and Civil Enforcement Section ·

Phone: (314) 539-2200 Fax: (314) 539-2309

Civil Rights Division U.S. Department ofJustice 950 Pennsylvania Avenue NW

Northwestern Building, 7th Floor

Washington, D.C. 20530 .

Phone: (202) 514-2168

Fax: (202) 514-1116 Sara.Niles@usdoj.gov

 
 Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 1 of 25 PageID #: 56

IN TIlE UNTIED STATES DISTRICT COURT FOR TIm EASlERN DISTRICT OF MISSOURI - EASTERN DIVISION

UNITED STATES OF AMERICA,

)

Plaintiff,

)
) CIVIL ACTION NO. .1..\" \' OJ \ 0 ~\..t Fi«.l8

)

v.

)

)

MIDWEST BANKCENTRE,

)

)

Defendant.

)

)

AGREED QRDER
I. INTRODUCTION This Order is submitted jointly by the parties for the approval of and entry by the Court

simultaneously with the filing of the United States' Complaint in this action. This Order resolves

!
I

the claims ofthe United States that Midwest BankCenlre iMidwesf' or "Bank") has engaged in

a pattern or practice of conduct in violation of the Fair Housing Act ("FHA.J. 42 U.S.C.

!

§§ 3601-3619, and the Equal Credit Opportunity Act ("ECOA"), IS U.S.C . §§ 1691-1691f, by

discriminating on the basis of race and color in the provision of residential. real estate-related

credit in the Missouri portion of the St Louis MSA.

!:

There has been no factual rmding or adjudication with respect to any matter aIlegad by the United States. Accordingly. the execution of this Order is not, and is not to be considered as,
an admission or fillding of any violation of the FHA or the ECOA by Midwest. Rather, the

Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 2 of 25 PageID #: 57
parties have entered into this Order to resolve voluntarily the claims asserted by the United States in order to avoid the risks and burdens of litigation. The parties agree that full implementation ofthe terms of this Order will provide a fair and reasonable resolution ofthe allegations of the United States in arnanner consistent with Midwest's legitimate business interests.
Under the provisions of this Order, Midwest has committed itselfto a program designed to expand opportunities to meet the credit needs ofresidents located in majority-black census tnIcts in the Missouri portion of the St Louis MSA.' Midwest will ensure that its lending ·products and services are made available and marketed in majority-black census tracts on no less favorable a basis than in majority-white tracts. Midwest commits itsclfto take all reasonable, practicable actions, consistent with safety and soundness, to ~ the level of its residential. lending in majority-bJa4 census tracts. with the ultimate objective that Midwest offers mortgage lending services on an equal basis as it offers such services in majority-white census tracts. The remedial. plan to achieve this objective, detailed in subsequent sections oftrus Order, includes the
opening of one new branch in a majority-black census tract. targeted marketing programs,
expanded community outreach, conswner education and credit repair efforts, and investment in those areas through subsidized loan offerings in order to aid in the revitalization and stabilization ofthe housing market.

I FOI purposes of this Order, a census tract will be considered to be ''majority-black'' ifits racial

composition is more than 50% African-American based on data from the 2000 or 2010 United

States Ceosus.

.

2

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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 3 of 25 PageID #: 58
IL BACKGROUND Midwest is • wholly-owned subsidiary of Midwest B8IlkCeotre, Inc., • financial holding company headquartered in Sl Louis COlIDty, Missouri. Its principal office is in St, Louis County, Missouri. Midwest operates primarily as a commercial bank. The Bank also offers the traditional services of a financial depository and lending institution, including the receipt of monelliry deposits and the financing of residential housing. As ofDecember 31, 2010, Midwest had assets tota1ingjust onder $1.1 bllllon. Midwest is subject to the regulatory authority of the Federal Reserve System. 00 August i4, 2009, the Department of Justice informed the B8Ilk that it had initiated an inVestigatiOl; into potenlial·leoding discrimination by Midwest, including whether Midwest had discriminat;e4 on the basis of race in providing lending services to predominantly AfricanAmerican communities in the S~ Louis Metropolitan Statistical Area (,'MSA"). In 2009, the Federal Reserve System initiated a consumer compliance examination of Midwest. The examination included an evaluation ofleoding data from 2006 to 2008 related to Midwest's applications and originations in the City of St. Louis and 5t. Louis, St. Charles, and jefferson Counties? Based on the information gathered in its examination, the Federal Reserve concluded that there was reason to believe that Midwest engaged in a pattern or practice of conduct in violation ofthe FHA and ECOA 00 October 14,2010, the Board ofGovemors of
, The Missouri portion of the Sl Louis MSA consists of Crawford, Franklin, Jefferson, Lincoln, SL Charles, St. Louis and Wam:n counties, as well as the City ofSI. Louis. The Board', investigation focused Qn Midwest's lending activities in the COlIDties closest to the City of St. Louis, including Jefferson, St. Charles and S~ Louis Counties, as well .. the City .of SL Louis itself.
3·

Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 4 of 25 PageID #: 59

the Federel Reserve System ("Board'1 lCfemd this metter to the Attorney Geoerai pursuant to ECOA.

After conducting its own extensive investigation and reviewing the information provided by the Board, the United States contcods that Midwest has acted to meet the =<lit needs for residential real estate-related loans in majority-white census tracts of the Missouri portion of the St Louis MSA and bas avoided serving the similar credit needs of majority-black census tracts. The Complaint alleges that Midwest's policies and practices are intended to deny and discourage, or have the effect of denying or discouraging, an equal opportunity to the residents afthe majority-black tracts in the Missouri portion of the St Louis MSA to obtain residential real estato--related loans.

Midwest emphatically denies the alleged violations of law and strongly maintajns that it has been and. remains CQmmitted to engaging in lending practices in a manner that ensures . compliance with the FHA and ECOA and is consistent with safe and sound banking operations.
Nevertheless; «? avoid the costs and burdens of litigation, both parties voluntarily <;onsent to the
entry of this Order.

The United States recognizes that, since being iDformed of the United States'

investigation ofthis matter and dwing the course of the Board's examination. Midwest has

volUntarily undertaken several initiatives to help meet the credit needs of residents located. in

majority-black census tracts in the Missouri portion of the St. Louis MSA. For example.

Midwest has revised its Community ReinvestmentAct ("CRA'1 assessment area to include all of

St. Charles. St. Louis and Jefferson counties and the entire City of St. Louis.

I I

In 201 0, Midwest expanded its marketing and advertising efforts by placing

I

advertisements in newspapers serving largely minority populations. Midwest has recently

I

4

Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 5 of 25 PageID #: 60
conducted a financial education training class for residents of the College Hill neighborhood and
collaborated with a newspaper serving largely minority populations in organizing three ti.n.ancial . education workshops conducted at a local African-American owned business serving the African-American community. Midwest has also engaged an independent third party to assist
the Bank. in the development of internal programs around the subject of"unconscious bias." Beginning in 20 IO. Bank managers have also been active participants in efforts to address
the large number ofunba.nked and underbanked persons in. St Louis, which efforts were otganized by the Federal Deposit Insunmce Corporation and are currently led by community busin~ and organizations . In one program designed to meet the needs of the community, Midwest has developed. a small dollar (up to $5,000) home improvement loan product with less stringent underwriting criteria at a low fixed rate to assist homeowners in low- and moderateincome neighborhoods repair and maintain their homes.
In terms of financial support to local commtmity organizations, Midwest solicited and =eived $200,000 througb • federal home loan bank grant program focused on affordable housing, to partner with a 8t. Louis area community group to provide home repairs for homeowners in. the predominantly African-American community ofPine Lawn, Missouri? The Bank has also approved and opened. $250,000 line of credit to support a micro-lending program., which enabled that program to fund loans to minority-owned businesses and/or busi.aesses located in majority-black census tracts that it could not have otherwise funded.

) Pine Lawn is located in the Missouri portion of the St. Louis MSA.

, ,

5

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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 6 of 25 PageID #: 61

Ill. REMEI!IA.L ORDER A. General Prohibitory Injunction

1. Midwest, including all of its officers, employees, agents, representatives, assignees, and successors in interest, and ail those in active concert or participation with any of them. is hereby enjoined from engaging in any act or practice that discriminates on the basis of race or color in any aspect of a residential real estate-related tnmsaction in violation of the FHA, or in any aspect of a credit transaction in violation of ECOA This prohibition includes. but is not limited to: marketing and advertising; the selection of sites for and the provision of services
at branch offices or other channels; the delineati.on of an assessment area under the eRA. 12
.U.S.C. §§ 2901-2906; and the determination of geographic areas in which loan applications are solicited or ftmded, except to remedy the violations alleged by the United States.
2. Midwest shall take the aCtions reasonable and necessary, consistent with safe and sound banking practices, to ensure that it offers and provides all persons with an equal opportunity to apply for and obtain credit, regardless of the predominate race or color oftbe area in which a person lives, or the area in which the property securing the loan is located. Those actions include, but are not limited to, ~e remedial actions specified in this Order.

I

3. Midwest shall take the actions described herein to ensure that all types of credit it

offers - including residential loan products - are made available and markc:tcd in majority-black

census tracts in the Missouri portion of the St. Louis MSA within the Bank's assessment area on

no less favorable a basis than in majority-white census tracts so that all persons throughout the

Missouri portion ofthe St Louis MSA within the Bank's assessment area will have an equal

opportunity to access and obtain credit from Midwest

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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 7 of 25 PageID #: 62

4. This Order requires Midwest to take these actions to remedy its alleged fair lending violations. Midwest retains the discretion to take any additional actions intended to achieve the goals ofthis Order.

B. ·eRA Assessment Area

S. In 2010, Midwest revised its CRA assessment area to .include all ofSt. Louis, St. Charles and Jefferson Counties and the City ofSt. Louis. Midwest agrees to continue to include the entirety of St Louis, St. Charles and Jefferson Counties and the City of SI. Louis in its CRA assessment area during the term of this OIder. During the term of this Older, Midwest shall provide written notice to the United Slates thirty (30) days prior to implementing any proposed changes to its current CRA assessment area. NOthing in this Order precludes Midwest from
expanding its eRA as~ssment area in the future in a manner consistent with the provisions of
the CRA and its implementing regulations.

C. Branch Expansion

6. Midwest shall evaluate future opportunities for expansion, whether by acquisition or opening new offices, in a. manner consistent with achieving the remedial goals of this Order.

7. Midwest shall open or acquino.t least one (I) additional full-service branch office

located in a m. ajority-black census tract in the City of Sl Lou. is or the adjacent northern portion
of St. Louis County. This new branch will provide the complete range of services typically

offered at Midwest's full-service branches located in majority-white census tracts and shall

provide a residential mortgage-1ender who is fully trained in all relevant aspects of home mortgage and home equity lending. That residential mortgage lender shall work on-site as "Well

,.,,

as spend a portion of his or her time in the field, attending community events. making telephone

7
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 8 of 25 PageID #: 63
calls and engaging in other outreach activities targeted towards residentli of majority-black census tracts. When the residential mortgage lender is not on-site, a new account representirtive will be aval1able and trained to take home equity applications. The new account representative
will also be available to take contact information from potential borrowers and to set up
appointmetml for those applicants with a residential mortgage lender.4 The training of the mortgage lender and the new account repr~entative will also encompass the fi!ir lending obligations ofMidwest under the FHA, ECOA, and CRA. Midwest shall promptly evaluate possible locations for this new branch and shall present its proposal for the branch to the UIrited States for its review and approval, which shall not be umeasonably 'Withheld, within six (6) months of the date of entry of this Order.
8. Midwest will make all re~onable efforts, subject to local government and regulatory approval, to open ~r acquire the new branch located .in a majority-black. censu3 tract within eighteen (18) months of the eotry of the Consent Order.
9. To meet the target date for the opening of this new branch. Midwest shall act as quickly as possible to obtain any required local or state governmental permits and approvals and to seek the approval of Midwest's federal regulator, currently the Boatd.
10. Nothing in this Order precludes Midwest from opening or acquiring additional
branch off!.ces in its ~isting eRA assessment area or elsewhere. However, Midwest shall notify
~ The new account representative at this branch will maintain a log ofall individuals inquiring about mortgage loan produ'tli. That log shall inciude the time and date of the inquiry, the name and contact information of the potential applicant, and the name of the mortgage lender to whom the inquiry is referred. The responding mortgage lender shall update the log to indioate when, and by what means, contact is made. as well as the type of mortgage loan information provided.
8

Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 9 of 25 PageID #: 64
the United States of its plans to do so when i~ so notifies the Board, and/or any other banking n:gu1atory agency.
D. Director of Community DevelopmeDt and Director of Compliance
11 . The Bank asserts that it has recently increased its internal fo cus on fair lending and diversity, Specifically, in 2010, Midwest established a management-level Fair and Responsible Lending Committee to develop and implement a comprehensive eRA, fair lending and community development strategy. A Board of Directors' Fair and Responsible Lending Committee also bas been established to make certain that then: is appropriate focus on Midwest' s fair and responsible lending responsibilities. Midwest shall maintaln. these committees for the duration ofthis Order.
12. For the duration ofthis Order, Midwest shall continue to employ a full-time Director of Community Development, wbos:c primary responsibilities will include overseeing the continued development of the Bank's lending in majority-black census tracts. The Director of Community Development is a member of the management-level Fair and Responsible Lending Committee and will report directly to the board-level Fair and Responsible Lending Committee regarding the following responsibilities: monitoring the activities of loan officers regarding the solicitation and origination of loans in majority-black census tracts, including the special loan JXOgI'8Dls identified in this Order, coordinating Midwest's involvement in community lending initiatives and outreach programs; serving as a resource to lending staff to encourage and develop more lending within majority-black census tracts; promoting financial education; providing financial counseliog; and building relationships with community groups,
13. For the duration of this Order, Midwest shall continue to employ a full-time Director of Compliance, whose responsibilities will include overseeing compliance with the
9

Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 10 of 25 PageID #: 65
provisions oftbis Order. The Director of Compliance is a member of the management-level Fair and Responsible Lending Committee. The Director of Compliance will oversee the development and implementation of mandatory fair lending troining of all branch pezsonnel with significant involvement in residential lending (both existing and new employees) as summarized in Section ill. E. of this Order, and report directly to Midwest', Board ofDireetors on the progress of these initiatives at least quarterly. including recommending changes in the fair lending training program to increase its effectiveness.
E. Fair Lending Training 14. Midwest shall provide periodic tnrining to all employees with significant
involvement in residentiallcnding, including independent oontractors with substantive responsibility in developing, marketing, or generating residential mortgage loans or loan products, to ensure that its activities are conducted in a nondiscriminatory manner. This training shall encompass the fair lending obligations of residential mortgage lending pezsonnel under the FHA and ECOA, their obligations under the eRA, and their responsibilities under this Order.
The tnrining required by this _ p h shall be conducted by an independent qualified third
party approved in sdvance by the United States. In sddition. within fifteen (15) days ofthe entry of this Order, Midwest shall provide to aU such employees an explanation and copies ofthe applicable provisions oftrus Order. and allow an opportunity for such employees to have any questions concerning the Order answered. Midwest shall bear all costs associated with the troining.
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 11 of 25 PageID #: 66
F. Marketing, Advertis~g and Outreach
15. Midwest shall continue to expand its marketing, advertising, and outreach programs to improve their performance in meeting the credit needs ofthe residents in majoritybla&. census tracts in the ~ssouri portion of the St Louis MSA within the Bank's assessment
16. Midwest shall spend a minimum of$50,000 per year ($250,000 over the tenn of the Order) on one or more of the targeted advertising and marketing campaigns described in paragraphs 17 (a)-(d) below and outreach activities described in paragraph 17(1) below. '
17. The marketing, advertising and outreach program shall be specifically targeted to generate a significant additional numbers of applications for all types of credit products frOm qualified residentS in majority-black census tracts in the Missouri portion of the St. Louis MBA within the Bank's assessment area. This program shall include advertising or marketing in one or more ofthe mediums described in (a) through (d):
(a) Print media specifically directed to African-American reader.i.' Midwest retains the discretion to determine the size, content, and frequency of such advertising subject to the standards set forth abOve;
, The funds expended by Midwest under paragraphs 15 through 17 may cover the costs associated with biting third parties to develop the advertisements and marketing materials in addition to costs of placing or distributing targeted advertisements or marketing materials, but salaries or other compen~a:tion for participating Bank personnel shall not be counted towards the amount spent on these advertising, marketing and community outreach programs. 6 Midwest need not include evert credit product it offers in each advertisement, but mU5t include in this targeted advertising over the course of a year their principal prime loan pr~ucts and all special credit products or programs available under the terms of this Order.
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 12 of 25 PageID #: 67

(b) African-American-oriented. St Louis-area radio stations;

(e) Point-<>f-distribution materials, such as posters and brochures, targeted towmd the

majority-black census tracts in the Missouri portion ofthe St Louis MSA within the Bank's

assessment 8l'ea to advertise products and services offered by Midwest, including any special

loan products or services made available pursuant to this Order; or

r ,

(d) Direct mailings to advertise the new branch location andlor the loan program

required by this Order to residents in the majority-black census tracts in the Missouri portion of

the St. Louis MSA within the Bank's assessment area, so long as those mailings are not targeted.

exclusively or primarily at existing customers. This does not preclUde Midwest from conducting

other"marketing Dot focused on residential leodin.g or other consumer products, by direct mail or

otherwise, that is limited. to current customers.

(e) All of Midwest's print advertising and promotional materials sball contain an equal housing opport\mity logo-type. slogan. or statement All ofMidwcst's radio and television adverti..sements sh.all include the audible statement ~Equal Housing Lender.»

(I) in addition to the targeted efforts described in subparagraphs (a)-{d), during the tmn of this Order. Midwest will conduct a minimum. of four (4) outreach programs per year for real estate brokers and agents, developers. and public or private entities engaged in residential real estate-related business in the majority-black census tracts in the Missouri portion ofthe St Louis
MSA withiil the Bank's assessment area. to inform them. ofthe products and services Midwest
offers, including those detailad in this Order, and to otherwise develop business relationships with them.

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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 13 of 25 PageID #: 68

G. Credit Needs Assessment

,, .

18. Throughout the term. ofthis Order, Midwest will continue its efforts to assess the

i

residential real estate--reiated credit needs oftbe Missouri portion of the St. Louis MSA's majority· black census tracts within the Bank's assessment area. This assessment shall include.

but not be limited to: (a) analysis of the most recent available demographic and socioeconomic

data about those CCIlSUS tracts; (b) evaluation of the t<Sidential credit needs of and correspooding

lending opportunities in these majority·black census tracts, including. but not limited to, the need

for and feasibility of alternative mortgage and other credit products aimed at borrowers at or near

area median income whose credit may have been damaged by the subprime lending practices in

those areas during the last d~dei (c) considera.tion.ofhow·Mi.dwest's residential lending

operations can serve the remedial goals of this Order, and. (d) thorough :review of the availability

ofrelevant federal. state, and local governmental programs and evaluation of how participation

in each of them. woUld assist in achieving the remedial goals of this Order. Midwest may retain

outside parties to provide expert analysis and assistance in performing this assessment

19. Recently, Midwest has met with. representatives of a number of community organj7lltions and has participated on the steering committee for the St. Louis Regional Unbankcd Task Force. In accomplishing this assessment, representatives of Midwest shall continue to meet with representatives ofthese and other St Louis metropolitan area community organizations significantly involved in promoting filir lending, home ownership. or residential development in majority-black census tracts, including the Metropolitan Sl Louis Equal Housing Opportunity COImcil (''EHOC''). Midwest may also meet with representatives of any other appropriate.entity in conducting this needs asscssmerd:. Midwest will take into account its assessment under paragraphs 18 and 20, as well as the most recently available information about

13 .

Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 14 of 25 PageID #: 69
the credit needs of this area when implementing the terms of this Order. including directing the activities ofllie Director ofCoIllll\Ullity Development as described in paragraph 12 and implementing the branch expansion, advertising, outreach. consumer education, credit repair, and special financing program as described herein.
20. Midwest shall present: to counsel for the United States a written report of this special. credit needs assessment, together with ~ommendations. if any, for actions beyond those specified in this Order to be taken to meet those needs, not later than six (6) months after the entry of this Order.
21 . For the term ofthis Order, Midwest shall meet annually with EHOC and other community organizations as part of an ongoing credit needs assessment and evaluation oftheir community development strategy, in order to better meet the residential credit needs ofthe residents in the .maj.ority-black census ~ ofthe :Missomi portion ofthe St. Louis MSA within ~e Bank's assessmeIIt area.
IV. SATISFAcnON OF UNITED STATES' CLAIMS FOR MONETARY RELIEF A. Loan Subsidy Fund
Xl. Midwest will invest a minimum of $900,000 over the duration oftbis Order in the . special financing program descnl>ed below for residential loans.7 When cOmbined with the other financial commitments described herein. this special finllllcing program will satisfy fully the claims ofthe United States for damages and other monetary relief in this case. 1 No loRD. origiDated under this program shall exceed the confolllling loan·limit applicable to Fannie Mae and Freddie Mac, es determined annually by the Federal Housing Finance Board.
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 15 of 25 PageID #: 70
23. Through this special financing program for home purchase. refinancing or home improvement loans. Midwest will offer qualified residents in majority-black census tracts in the Missouri portion of the St. Louis MSA loan products at interest rates and/or on terms that are more advantageous to the applicant than it would notmally provide.
24. Under this special financing program. Midwest may provide one Qr more of the followiDg foIIILS of financial assistance to any qualified applicant:
(a) originating or brokering a loan for a home p\U"Cbase, rc£nancing. or home improvement at an interest rate a minimum of 112 ofa percentage point (50 basis points) below the otllerwise prevailing rate, provided that ifth. prevailiog rate ("APR") for any such loon exceeds 8% at any time during the term of this Order, the interest rate subsidy.shall be a minimum of1 %, and ifthe prevailing APR exceeds 90/0 at any time during the term of this Order,-the subsidy shall be a minimum of 1.5%;
(b) originating a home purehaseloan at Midwest's prevailing prime interest rate for a conventional fixed-interest rate mortgage to a borrower who would ordinarily' not qualify for such rates for reasons including, for example, the lack ofrequired credit quality, income, or down payment;
(c) providU:tg a direct grant ofa minimum of2% of the loan amount, up to a maximwn of 3%, for the ~UIpOse of down payment assistance;
(d) providing closing cost assistance' in the form of a direct grant of a minimum of $500.00 and a maximum of $1,000.00;
• Closing cost assistance ~ include the waiver of standard application and processing f~s
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 16 of 25 PageID #: 71
(e) providing down payment or closing cost assistance through Ii second mortgage that provides for principal forgiveness of a minimum of ~500 and a maximmn of $3.500 based on loan petformance during the term ofthe Order; or
(f) purchasing interest free mortgage loans originated by a non-profit organization that
builds affotdable housing for families in the Missouri portion of the Sl Louis MSA who are in·
n~ of shelter in a manner that provides :fimds to such organization for the establishment of "cash reserve repair fund" accounts for the homeowners. These pre-paid savings BCCOunts would be opened and maintained by Midwest and available to the homeowner for home repair and maintenance expenses to be. approved by Midwest. which are directly related to the repair or maintenance of the structure of the house. At the time of each loan purchase. the homeowner 'WOuld receive a minimwn of$500 and a maximwn of $3,500 in the pre-paid savings BCCO\m.t depending on amount of the loan. Midwest will service the homeowners' interest free loans without any additional servicing fees.
25. Midwest retains the discretion to offer more than one. or all. oftbe foregoing
foIlllS of financial assistance to qualified applicants on an individual basis as it deems appropriate Under the factual circumstances of a particular application. so long as the maximum total financial assistance provided by Midwest to an individual qualified applicant docs not
m exceed $7,500. Midwest will exercise this cliscretion a manner which maximizes the
likelihood that it will originate a loan to a qualified applicant. consistent with applicable underwriting guidelines and safety and smmdness standards and the goal of serving the credit
assessed in connection with residential mortgage loan applications (e.g., application fee. loan origination'or underwriting'fee, processing fee, appraisal fee, home inspection fee, flood detennjnation fee, and title fees).
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 17 of 25 PageID #: 72
needs ofmajority-black census tract residents in the Missouri portion of the St Louis MSA within the Bank's assessment area
26. Midwest shall have discretion to provide the loan subsidy among its residential loan products.
27. The special financing program will be marketed in alllllIlDU that includes all of
the majority-black census tracts in the Missouri portion of the St Louis MSA within the Bank's
assessment area so that all eligible residents of these areas have an opportunity to participate. 28. No provision ofthi' Order, including this special financing program commitment,
requires Midwest to make any unsafe or unsound loan. During the term of this Order, Midwest shall assess the effectiveness of this special financing program in achieving its remedial goal and shall fecommeDd to the United States any changes it ~onably believes are necessary and appropriate to increase the program's effectiveness. B. Connmer Financlal Education and Credit Repair
29. The parties acknowledge that financially-educated consumers are essential to the remedi.,I goal of sustained increases in Midwest's residential lending in majority-black census tracts withi.c. the Bank's assessment area in the Missouri portion of the St. Louis MSA. The parties also acknowledge that assisting residents of1hese census tracts in maintaining and improving their consumer credit ratings is essential to the remedial goals of this Order. The
consumer education and credit repair program shall help identify and develop qualified loan applicants from majority-black census tractS in the Missouri portion ofthc St Louis MSA within the BBDk', assessment area. Midwest shall spend a minimmn of$60,OOO per year ($300,000
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 18 of 25 PageID #: 73
· over the term of the Order) on one or mace component of the following consumer education and credit repair program. Those components include: . (a) Financial Education:· Midwest will sponsor a minimum of twelve (12) financial education events per year offered by community or governmental organizations engaged in fair
lending work" or through the Bank's own financial education programs.' These financial
education events shall be marketed towards residents of majority-black census tracts in the
Missouri portion of the St Louis MSA within the Bank·s assessment area and held at locations
intended to be convenient 10 those residents. (b) Credit Establislunent and Repair: Midwest may provide one or more o~the
foUowj.n.g forms of credit establishment and repair assistance to residents of majority-black census 1XaCtS in the Missouri portion oftbe St Louis MSA:
(1) Financial support to HUD-approved financial education counselors who provide services targeted towards majority-black census tracts, up to an aggregate annual contribution of $1 0,000 per year for all partner organizations to offset the organizations' direct cost·ofhousing counseling servicesj
(2) Within six (6) months ofthe effective date of this oroer, Midwest will offe< special pwpose checking accounts with terms that are more advantageous to the accountholder than it would normally provide to residents of majority-black census tracts in the Missouri portion of the Sl Louis MSA withln the Bank!s assessment area whose
9 Salaries or other compensation for participating Bank personnel shall not be counted towards the amount spent on these programs.
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 19 of 25 PageID #: 74
credit history does not present an unacceptably high risk to the Bank or indicate. history of fraudulent transactions:10
(a) No annual fees or fees for non-use; (b) No minimum balancej (c) Online access; (d) Debit Cards; (e) No fees for one box ofchecks annually; (I) An optional, affordable overdraft protection provision, which includes reduced fees, for overdraft and related fees totaling $100 for qualified customers; (g) No fees for the user of ATMs belonging to.the Bank or the Bank's affiliates; and (h) A fee waiver for the additional 200 ATMs in the SI. Louis MBA in the MoneyPass system. (i) A special puIJlose checking account may be closed by the Bank ifthe account is overdrawn for 60 consecutive days. G) Any fees that are waived or assessed in an amOl.Ult lower than the
Bank's Stmldard checking account fees for qnalified accountholders ofSPOCiaI
10 Once Midwest opens·the new·branch described in paragrephIII.C, these accounts will be available to all qualified customas who open accounts at that branch.
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 20 of 25 PageID #: 75

purpose checking accounts described in this paragraph may be counted toward the monetary investment required under section IV.B.

(3) Debt forgiveness (including unpaid principal, interest, escrow payments and/or fees) up to $5,000 per borrower (but not to exceed 90% of,the total amount owed.) for borrowers or co-borrowers who experience difficulty repaying their Affordable Home Improvement loan or any other residential or consumer loan in the Bank's portfolio;

(4) Other relared programs intended to help establish or remediate consumer credit that are targeted at the residents of majority-black census tracts in the Missouri portion of the 8t. Louis MSA. as may be proposed during 'the tenD. of this Order by Midwest and approved prior to implementation by the United States . '

30. The consumer education and credit repair programs will be marketed in a miumer
that includes all ofthe majority-black census tracts in the Missonri portion of the St Louis MSA wjtbin the Bank's asseSsment area so that: all eligible residents of these areas have an opportunity to participate.

C. Other Relief

31 . Within thirty (30) days after the entry of this O\'der, Midwest will also deliver to

the United States a check payable to the Metropolitan Sl Louis Equal Housing Opportunity

Council ("EHOe") a sum of $25,000 to compensate thet organization for monetary damages

I

associated with this matter. Prior to receipt of such payment, EHOC shall execute a release in

\

which the organization agrees to forever release and discharge Midwest, its agents, employees,

attorneys, affiliates, successors and assigns from any and all cl~s. damages and injuries of
\

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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 21 of 25 PageID #: 76
whatever nature arising out ofthe allegations presented in the Complaint giving rise to this Order.
V. EVALUATING AND MONITORING COMPIJANCE 32. For the duration of this Order, Midwest ,bAll retain all records relating to its obligations hereunder, including its residential lending activities, as well as its marketing. outreach, branching, spocialprograms, and other compliance activities as set forth herein. Electronic mail messages, calendars. contacts., tasks and other electronic data stored in the Bank's electronic mailbox system shAll only be retained for Bank employees in the following positions: Chairnum, President, ChiefCredit Officer, Director of Compliance, Director of Community Lending, Director of Marketing. community development mortgage lender, and Bnmch LeaJ!er and new account representative at the branch established pursuant to paragraph 7. The United States shAll have the right to review and copy such records upon request.33. Midwest , bAll provide to counsel for the United States the deta it submits to the Federal Financial Institutions EXatnination Council C'FFIEC") pursuant to the Home Mortgage Disclosure Act and the eRA. The data will be provided in the same format in which it is presented to the FFIEC within thirty (30) deys of its submission to the FFlEC each year for the duration of this'Order, including the record layout. 34. In addition to the submission of any other plans c:>r reports specified in this Order, Midwest shAll make an annual report to the United States on its progress in fulfilling the goals of this Order. Each such report shall provide a complete acconot of Midwest's actions to comply with each requirement of this Order during the previous year, an objective assessment ofthe eldent to which each quantifiable obligation was met, an explanation of why any particular
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 22 of 25 PageID #: 77
component fell "short of meeting the goal for that year, any recommendations for additional. actions to achieve the goals ofthis Order. and a description ofany additional actions taken by Midwest pursuant to paragraphs 28 and 29.b.4, above. Midwest shall submit this ,"port each year for the term ofthis Order within six1y (60) days of the anniversary of the date of the entry of this Order. In addition. Midwest shall attach to each annual report representative copies of training material and advertising and marketing materials dissemioated pursuant to this Order.
VI. ADMINISTRATION 35. The requirements oftbis Order shall be in effect for five (5) yean, except as specified below. The Order shall terminate: (0) tluee moDlhs after the submission of Midwest's fifth annual report to the United Slates or (b) ifthe Court grants ajoint motion by the parties to terminate the Order prior to that. date, which motion may be proposed by Midwest at any time after the Order hss been in effect for four (4) years, ifthe bank hss fully complied with all its terms, including the ,following investment requirements: (i) a minimum of $250,000 in advertising, marketing. and community outreach campaigns as described in Section m.Fj $900,000 in the special fioancing program descn'bed in Section IV.A; and $300,000 in the consumer education and credit repair program described in Section IV.B. IfMidwest has not invested $250,000 in its advertising, marketing and community outreach programs, $900,000 in its special :finance program and $300,000 in its consumer education and credit repair program in five (5) years from the date entry ofthis Order, the Order shall terminate three months after the submission ofMidwest's final report to the United. States that demonstrates the fulfillment of those obligations. It sliall only be exteDded further upon motion ofthe United States to the Court, for good ClJUSe shown.
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36. Any time limits for performance fixed by this Orner may be extended by mutual written agreement ofth.e parties. Other modifications to this Order may be made only upon approval of the Court, by motion by either party. The pertio. recognize that there may be changes in relevant and material factual circumstances during the term. of this Order that may impact the accomplishment of its goals. The parties agree to work cooperatively to discuss and attempt to agr~ upon any proposed modifications to this Order resulting therefrom.
37. In the event that any disputes arise about the interpretation of or compliance with the temls ofthis Order, the parties shall endeavor in good faith to resolve any such dispute between themselves before ~g it to this Court for resolution. The United States agrees that ifit reasonably believes that Midwest has violated any provision of this Order. it will provide the Bank written notice thereof and give it sixty (60) business days to reach a resolution with the United States regarding a corrective action plan tQ resolve the alleged violation before presenting the matter to this Court. In the ~nt of either a failure by Midwest to perform in a timely manner any act required by this Order or an act by Midwest in violation of any provision hereof, the United States may move this Court to impose any remedy authorized. by law or equity, includ.io.g attorneys' fees and costs,
38. Midwest's compliance with the terms of this Order shall fully and finally resolve all claims of !be United States relating to Midwest', alleged violation ofthe fair lending laws by means of discriminating OD. the basis ofrace or color, as alleged in the Complaint in. this action, including all claims for equitable relief and monetary damages and pe:nalties. Each party to this Consent Order shall,bear its own costs and attomey'~ fees associated 'Nith this litigation.
23

Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 24 of 25 PageID #: 79 39: The Court shall retai.njurisdiction for the duration of this Consent Order to
enforco the terms of the Order, after which time the case shall be djsmissed with prejudice.
. ±b
ofJ SO ORDERED, ~day w 4201 L
.~~~ UNITED STATES BI8E'S JUDGE M {tb/s-rn"fTtE...
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Case: 4:11-cv-01086-FRB Doc. #: 9 Filed: 06/28/11 Page: 25 of 25 PageID #: 80

The _"Sj'~j J>o!'lby apply for and consent to the entry ofthis OIder:

For west: ~BI~penlr<

For the United States of America:

AND Y;.S

ER

JOHNP. OhlER

ANDREA K. MITCHELL

BucldeySandler LLP 1250 24~ Street, NW, Suite 700

Washington, DC 20037

Tel.: (202) 349-8001

Fax: (202) 349-8080

asandIet@bucldeysandler.com

moMAS E. PEREZ Assistont Attorney General Civil Rights Division
STEVEN H. ROSENBAUM Chief Civil Rights Division Housing and Civil Enforcement Section
.g~~
. DONNA M. MURPHY Deputy Chief SARA L. NILES Trial Attomey United States Department of Justice Civil Rights Division Housing and Civil Enforcement Section 950 Pennsylvania Avenne, N.W. - G St WashingtDn, DC 20530 Tel.:.(202) 514-2168 Fax: (202) 514-1116 Sara.Niles@usdoj .gov

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 Case: 4:11-cv-1086 As of: 08/24/2011 06:08 PM CDT 1 of 2
CLOSED, FULLCON
U.S. District Court Eastern District of Missouri (LIVE) (St. Louis) CIVIL DOCKET FOR CASE #: 4:11−cv−01086−FRB

United States v. Midwest BankCentre Assigned to: Magistrate Judge Frederick R. Buckles Cause: 42:3604 Title VIII − Housing Discrimination
Plaintiff

Date Filed: 06/16/2011 Date Terminated: 06/28/2011 Jury Demand: None Nature of Suit: 440 Civil Rights: Other Jurisdiction: U.S. Government Plaintiff

United States of America

represented by Sara Lewenberg Niles U.S. DEPARTMENT OF JUSTICE 950 Pennsylvania Avenue, N.W. Washington, DC 20530 202−514−2168 Email: sara.niles@usdoj.gov ATTORNEY TO BE NOTICED

V. Defendant Midwest BankCentre

represented by Andrea Kay Mitchell BUCKLEYSANDLER LLP 1250 24th Street, NW Suite 700 Washington, DC 20037 202−349−8028 Fax: 202−349−8080 Email: amitchell@buckleysandler.com LEAD ATTORNEY ATTORNEY TO BE NOTICED
Andrew L. Sandler BUCKLEYSANDLER LLP 1250 24th Street, NW Suite 700 Washington, DC 20037 202−349−8000 Fax: 202−349−8080 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 06/16/2011
06/16/2011 06/16/2011 06/16/2011

# Docket Text
1 COMPLAINT against defendant Midwest BankCentre Non−Jury Demand,, filed by United States. (Attachments: # 1 Exhibit Map− Branch Locations, # 2 Exhibit Map− Applications, # 3 Exhibit Map− Originations, # 4 Civil Cover Sheet, # 5 Original Filing Form, # 6 Waiver of Service)(Niles, Sara) (Entered: 06/16/2011)
2 MOTION for Settlement Entry of Agreed Order by Plaintiff United States. (Attachments: # 1 Text of Proposed Order Agreed Order)(Niles, Sara) (Entered: 06/16/2011)
Case Opening Notification Waivers issued 1, Consents issued 2, Judge Assigned: US Magistrate Judge Frederick R. Buckles. (SAJ) (Entered: 06/16/2011)
Pursuant to Local Rule 2.08, the assigned/referred magistrate judge is designated and authorized by the court to exercise full authority in this assigned/referred action or matter under 28 U.S.C. Sec. 636 and 18 U.S.C Sec. 3401. (CSAW) (Entered: 06/16/2011)

Case: 4:11-cv-1086 As of: 08/24/2011 06:08 PM CDT 2 of 2

06/22/2011 06/22/2011 06/22/2011 06/22/2011 06/23/2011
06/23/2011 06/23/2011
06/23/2011 06/24/2011 06/28/2011
06/28/2011 06/28/2011 06/28/2011

Receipt 4644022237 in the amount of $100.00 for PRO HAC VICE on behalf of Andrea Kay Mitchell (CCAM) (Entered: 06/23/2011)
Receipt 4644022237 in the amount of $100.00 for PRO HAC VICE on behalf of Andrew L. Sandler (CCAM) (Entered: 06/23/2011)
3 MOTION for Leave to Appear Pro Hac Vice Andrea Kay Mitchell (Filing fee $100) by Defendant Midwest BankCentre. (Attachments: # 1 Certificate Of Good Standing)(MRC) (Entered: 06/23/2011)
4 MOTION for Leave to Appear Pro Hac Vice Andrew L. Sandler (Filing fee $100) by Defendant Midwest BankCentre. (Attachments: # 1 Certificate Of Good Standing)(MRC) (Entered: 06/23/2011)
5 ORDER IT IS HEREBY ORDERED that Andrea Kay Mitchells Verified Motion For Admission Pro Hac Vice (Docket No. 3) is GRANTED. IT IS FURTHER ORDERED that the Clerk of Court shall enter Andrea Kay Mitchell as attorney of record for defendant Midwest BankCentre in this matter. granting 3 Motion for Leave to Appear Pro Hac Vice Andrea Kay Mitchell Signed by Magistrate Judge Frederick R. Buckles on 6/23/11. (JWJ) (Entered: 06/23/2011)
ORDER RECEIPT: (see receipt) Docket No: 5. Thu Jun 23 14:54:35 CDT 2011 (Jones, Jeffrey) (Entered: 06/23/2011)
6 ORDER IT IS HEREBY ORDERED that Andrew L. Sandlers Verified Motion For Admission Pro Hac Vice (Docket No. 4) is GRANTED. IT IS FURTHER ORDERED that the Clerk of Court shall enter Andrew L. Sandler as attorney of record for defendant Midwest BankCentre in this matter. granting 4 Motion for Leave to Appear Pro Hac Vice Andrew L. Sandler Signed by Magistrate Judge Frederick R. Buckles on 6/23/11. (JWJ) (Entered: 06/23/2011)
ORDER RECEIPT: (see receipt) Docket No: 6. Thu Jun 23 14:56:31 CDT 2011 (Jones, Jeffrey) (Entered: 06/23/2011)
7 FULL CONSENT has been received by by Defendant Midwest BankCentre, Plaintiff United States of America. (MRC) (Entered: 06/24/2011)
8 ORDER −.....IT IS HEREBY ORDERED that plaintiff United States of America's Unopposed Motion for Entry of Agreed Order (Doc.#2) is GRANTED. The separate Agreed Order, the entry of which has been consented to by all parties in this cause, is entered herewith. IT IS FURTHER ORDER that, upon the entry of the Agreed Order, the Clerk of Court shall administratively close this case for statistical purposes. The Court shall retain jurisdiction over the cause in accordance with and for the purpose of enforcement of the terms of the Agreed Order, after which the case shall be dismissed with prejudice. granting 2 Motion for Settlement Signed by Magistrate Judge Frederick R. Buckles on 6/28/2011. (MRC) (Entered: 06/28/2011)
ORDER RECEIPT: (see receipt) Docket No: 8. Copy mailed to parties not electronically notified. Tue Jun 28 14:29:37 CDT 2011 (Crayton, Michele) (Entered: 06/28/2011)
9 AGREED ORDER − {see order for complete details}. Signed by Magistrate Judge Frederick R. Buckles on 6/28/2011. (MRC) (Entered: 06/28/2011)
ORDER RECEIPT: (see receipt) Docket No: 9. Copy mailed to parties not electronically notified. Tue Jun 28 14:35:40 CDT 2011 (Crayton, Michele) (Entered: 06/28/2011)