UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA,
Plaintiff,
v.
BANK UNITED d/b/a COMMONWEALTH UNITED MORTGAGE AND ERIKA STEINIGER,
Defendants.
______________________________
COMPLAINT
The United States of America alleges:
1. This action is brought pursuant to Section 812(o) of the Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as amended, 42 U.S.C. § 3612(o) by the United States on behalf of Gertrude Douglas, Angela Douglas, and Teresa Harris.
Jurisdiction and Venue
2. This Court has jurisdiction over this action under 28 U.S.C. § 1345 and 42 U.S.C. § 3612(o).
3. Venue is proper in that the claims alleged herein arose in Erie County, New York, within the Western District of New York.
Complainants and Defendants
4. Gertrude Douglas resides with her two minor children, complainants Angela Douglas and Teresa Harris. Gertrude Douglass, Angela Douglas, and Teresa Harris are handicapped as defined by the Fair Housing Act, 42 U.S.C. § 3602(h).
5. Defendant Bank United d/b/a Commonwealth United Mortgage (hereinafter "Bank United") was, during the time period relevant to the events at issue in this lawsuit, the mortgage lending division of Bank United, a Texas-based federally chartered savings bank.
7. During the time period relevant to the events at issue in this lawsuit, Defendant Erika Steiniger was a loan officer for Bank United. Erika Steiniger resides in Erie County, within the Western District of New York.

Factual and Legal background
8. On or about August 5, 1997, Gertrude Douglas, for herself and on behalf of her minor children Angela Douglas and Teresa Harris, filed a timely complaint with the United States Department of Housing and Urban Development (hereinafter "HUD"), pursuant to Section 810(a) of the Fair Housing Act, as amended 42 U.S.C. § 3610(a). In her complaint, Ms. Douglas alleged that the Defendants had discriminated on the basis of her and her children's handicap in violation of the Fair Housing Act.
9. Pursuant to the requirements of 42 U.S.C. §§ 3610(a) and (b) the Secretary of HUD (hereinafter "Secretary") conducted and completed an investigation of Gertrude Douglas's complaint, attempted conciliation without success, and prepared a final investigative report. Based on information gathered in the investigation, the Secretary, pursuant to 42 U.S.C. § 3610(g)(1), determined that reasonable cause exists to believe that discriminatory housing practices have occurred. Therefore, on October 30, 1998, the Secretary issued a Charge of Discrimination pursuant to 42 U.S.C. § 3610(g)(2)(A), charging Defendants Bank United and Erika Steiniger with engaging in discriminatory housing practices in violation of the Fair Housing Act.
10. On or about November 24, 1998, Defendants Bank United and Erika Steiniger elected to have the charge resolved in a federal civil action pursuant to 42 U.S.C. § 3612(a).
11. The Secretary has authorized the Attorney General to commence a civil action on behalf of Gertrude Douglas, Angela Douglas, and Teresa Harris pursuant to 42 U.S.C. § 3612(o).
12. The home located at 125 Floss Avenue, Buffalo, New York, is a dwelling within the meaning of the Fair Housing Act, 42 U.S.C. § 3602(b).
13. On or about November 22, 1997, Gertrude Douglas met with Defendant Erika Steiniger to apply for a Federal Housing Administration-insured mortgage loan through Defendant Bank United to purchase a home located at 125 Floss Avenue, Buffalo, New York. Ms. Steiniger had previously provided a pre-qualification certificate to Ms. Douglas, certifying that her income was sufficient to qualify for the mortgage loan. Under Federal Housing Administration guidelines, lenders may rely on documentation from the paying agency that the income is expected to continue for at least three years. Ms. Douglas provided Ms. Steiniger documentation from the Social Security Administration (hereinafter "SSA") verifying the amount of Ms. Douglas's and her children's Supplemental Security Income payments. Ms. Steiniger did not seek further documentation from the SSA about the expected continuation of these payments. Instead, during this meeting
Ms. Steiniger repeatedly asked Ms. Douglas about the nature of, and details concerning, her and her children's disabilities and instructed her to write out in

detail the cause and nature of her disability. Ms. Douglas explained that she did not want to provide personal and intimate details about her disability which she traces back to a traumatic event during her childhood. As a result of Ms. Steiniger's repeated inquiries, Ms. Douglas withdrew her application.
14. The Defendants, through the actions referred to in Paragraph 13, above, have engaged in discriminatory conduct on the basis of handicap in violation of the Fair Housing Act. More specifically, Defendants have:
a. Discriminated in the sale, or otherwise made unavailable or denied, dwellings to buyers because of handicap, in violation of 42 U.S.C. § 3604 (f)(1);
b. Discriminated in the terms, conditions, or privileges of the sale of a dwelling, or in the provision of services in connection with such a dwelling, because of handicap in violation of 42 U.S.C. § 3604 (f)(2); and
c. Discriminated in making available a loan for the purchase of a dwelling, or in the terms or conditions of such a loan, based on handicap in violation of 42 U.S.C. § 3605.
15. Gertrude Douglas, Angela Douglas, and Teresa Harris have suffered damages as the result of Defendants' conduct described above.
16. The discriminatory actions of the Defendants were intentional, willful, and taken in disregard for the rights of Gertrude Douglas, Angela Douglas, and Teresa Harris.
WHEREFORE, the United States prays that the Court enter an order that: 1. Declares that defendants' housing practices, as alleged herein, violate the Fair Housing Act, as amended, 42 U.S.C. §§ 3601-3619;
2. Enjoins Defendants, their officers, employees, and agents, and all other persons in active concert or participation with any of them, from discriminating based on handicap in any aspect of the sale of a dwelling or in a residential real estate-related transaction as defined by 42 U.S.C. § 3605(b);
3. Awards such damages as would fully compensate Gertrude Douglas, Angela Douglas, and Teresa Harris for injuries caused by Defendants' discriminatory conduct, pursuant to 42 U.S.C. § 3612(o)(3) and 42 U.S.C. § 3613(c); and
4. Awards punitive damages to Gertrude Douglas, Angela Douglas, and Teresa Harris, pursuant to 42 U.S.C. § 3612(o)(3) and 42 U.S.C. § 3613(c).

The United States further prays for such additional relief as the interests of justice may require.
JANET RENO Attorney General
BILL LANN LEE Acting Assistant Attorney General Civil Rights Division
JOAN A. MAGAGNA Chief, Housing and Civil Enforcement Section
ISABELLE M. THABAULT Deputy Chief ERIC I. HALPERIN Attorny, U.S. Department of Justice Civil Rights Division Housing and Civil Enforcement Section P.O. Box 65998 Washington, D.C. 20035-5998 (202) 353-9706
DENISE E. O'DONNELL United States Attorney Western District of New York
MARY PAT FLEMING Civil Chief, Assistant United States Attorney 138 Delaware Avenue Buffalo, NY 14202

 
 UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA,
Plaintiff,
v.
BANK UNITED d/b/a COMMONWEALTH UNITED MORTGAGE AND ERIKA STEINIGER,
Defendants.
______________________________________
CONSENT DECREE BETWEEN THE UNITED STATES AND BANK UNITED d/b/a COMMONWEALTH UNITED MORTGAGE AND ERIKA STEINIGER
This Consent Decree is entered into by Plaintiff United States and Defendants Bank United d/b/a Commonwealth United Mortgage ("Bank United") and Erika Steiniger. The United States has filed a Complaint brought pursuant to 42 U.S.C. § 3612(o) of the Fair Housing Act simultaneously with this Consent Decree. The Complaint alleges that the Defendants discriminated against the Complainants based on their handicaps by otherwise making a dwelling unavailable in violation of 42 U.S.C. § 3604(f)(1), discriminating in the provision of services in connection with a dwelling in violation of 42 U.S.C. § 3604(f)(2), and discriminating in the availability of, or terms and conditions of, a mortgage loan in violation of 42 U.S.C. § 3605. The Defendants, Bank United and Erika Steiniger expressly deny the allegations in the Complaint and deny they would be liable on any basis if this matter proceeded to litigation or that they have engaged in any wrongdoing. Nothing in this agreement is intended to be, nor shall be deemed to be an admission of liability. However, in the interest of avoiding the costs of litigation the United States and the Defendants agree to resolve this controversy without an evidentiary hearing or any determination of liability. Therefore, the parties have consented to the entry of this Consent Decree as indicated by the signatures appearing below. The United States and the Defendants enter this Consent Decree to resolve and discharge all claims that were or could have been brought as part of the charge of discrimination set forth in HUD Complaint No. 02-970942-8 and this action.
It is hereby ORDERED, ADJUDGED and DECREED:

I. Defendants Erika Steiniger and Bank United, its officers, employees, agents, successors and assigns are permanently enjoined from establishing, publishing, or applying policies or practices that request or require the disclosure of confidential personal or medical information or the nature or extent of disability and from any other discrimination on the basis of disability as prohibited by the Fair Housing Act, 42 U.S.C. § 3604(f)(1), 42 U.S.C. § 3604(f)(2), and 42 U.S.C. § 3605.
II. Upon execution of this Agreement, Bank United will pay compensatory damages to Gertrude Douglas, Angela Douglas, and Teresa Harris in the sum of twenty-five thousand dollars ($25,000). In consideration of these payments, Gertrude Douglas, for herself and on behalf of her minor children Angela Douglas and Teresa Harris, will execute a release substantially in the form of the release attached hereto as Attachment 1.
III. In order to ensure that handicapped persons are not subject to any inquiries about their disability when they apply for a mortgage loan using any income received based on a disability to qualify, the parties agree that the following procedures may be followed by Bank United when gathering information concerning such income:
A. Following receipt of an application for a mortgage loan, in which the applicant relies, in whole or in part, upon the receipt of income based on disability to qualify for the loan, the loan originator (or the loan processor to whom the loan application is thereafter referred) may request the following documentation with respect to such income:
1. A copy of the letter from the source of the payment verifying the amount of such income;
2. Documentation from the source of the payment concerning the period of time for which such income has been received; and
3. Documentation indicating the conditions or circumstances that would lead to the termination of payments.
B. All documentation for loan applications of the nature described in sub-paragraph (A) shall be retained with the loan application file for a period of three years and three months after the execution of this Agreement.
IV. Bank United shall maintain the following records:
A. A log, as attached hereto as Attachment 2, indicating the name, address, age, and date of application for each person who applies for a mortgage loan seeking to use disability income to qualify;

B. Information related to any complaints, including but not limited to complaints filed in court or with a regulatory or administrative agency, against Defendants alleging discrimination; and
C. All loan application files for each person who applies for a mortgage loan seeking to use disability income.
V. Defendant, Bank United, shall conduct training concerning the requirements of the Fair Housing Act and this Decree for all employees or agents of Bank United with responsibility for processing mortgage loans or assisting applicants in completing applications for mortgage loans. Such training shall be provided to all current employees and agents within 60 days of the date of the entry of this Decree and, during the next three years and three months, to all new employees in these job categories within 30 days of the commencement of their employment. Such training may consist of video tapes or in-house classroom instruction and shall be approved by the United States. All employees required to attend this session shall complete a form acknowledging their attendance. Employees who have received fair housing training within the six-month period prior to the entry of the Decree are exempt from this requirement, provided such training is approved by the United States. However, those employees must receive training on the requirements of this Decree, but this training may consist entirely of written materials.
VI. Every six months, starting six months from this agreement for three years, Bank United will provide the United States a copy of the log described in IV(A) above and complaints described in IV(B). Upon written request of the United States, Bank United will also make available copies of loan application files described in IV(C) above, the acknowledgment forms described in V, and any other documents relevant to compliance with this Decree.
VII. Duration of Decree and termination of legal action:
A. This Consent Decree shall remain in effect for three (3) years and three (3) months after the date of its entry.
B. The parties agree that in the event it is determined in any future action or proceeding brought by the United States or any agency thereof that either Defendant has engaged in any violation(s) of the Fair Housing Act, this Decree shall not be used as a basis to find such violation(s) to be a "subsequent violation" pursuant to 42 U.S.C. § 3614(d)(1)(C)(ii).
C. Each Defendant is separately responsible for compliance with this Decree.

D. This case is dismissed with prejudice, except that this Court shall retain jurisdiction for the duration of the Consent Decree to enforce the terms of this Consent Decree. After the three-year and three month term of this Consent Decree, the Defendants may move the Court to terminate this Consent Decree.
E. The parties to this Consent Decree shall endeavor in good faith to resolve informally any differences regarding interpretation of and compliance with this Decree prior to bringing such matters to the Court for resolution. However, in the event of a failure by Defendants to perform in a timely manner any act required by this Consent Decree, or otherwise to act in violation of any provision thereof, the United States may move this Court to impose any remedy authorized by law or equity, including, but not limited to, an order requiring performance of such act or deeming such act to have been performed, and an award of any damages, costs, and reasonable attorneys' fees which may have been occasioned by the violation or failure to perform.
VIII. The United States and Defendants Bank United and Erika Steiniger will bear their own costs and attorney's fees associated with this litigation.
IT IS SO ORDERED:
UNITED STATES DISTRICT JUDGE
Agreed to by the parties as indicated by the signatures of counsel below.
FOR PLAINTIFF UNITED STATES:
BILL LANN LEE Acting Assistant Attorney General for Civil Rights
JOAN A. MAGAGNA Chief ISABELLE M. THABAULT Deputy Chief ERIC I. HALPERIN Attorney Housing and Civil Enforcement Section Civil Rights Division Department of Justice P.O. Box 65998 Washington, D.C. 20035-5998 202-353-9706

DENISE E. O'DONNELL United States Attorney
MARY PAT FLEMING Civil Chief 138 Delaware Avenue Buffalo, NY 14202 716-551-4811
FOR DEFENDANTS BANK UNITED & ERIKA STEINIGER:
R. SCOTT DAVIES Briggs and Morgan 2400 IDS Center 80 South 8th Street Minneapolis, MN 55402
ATTACHMENT 1
RELEASE
In consideration for the covenants and agreements made and reflected in a certain Consent Decree entered in United States v. Bank United d/b/a Commonwealth United Mortgage and Erika Steiniger, Civil Action No. 99-___ on , 1999, as well as in consideration of the payments required to be made thereunder, I hereby release all claims that I and my children Angela Douglas and Teresa Harris, may have against Bank United and Erika Steiniger, arising out of, or related to my application for a mortgage loan with Bank United. I further understand that this Release shall be binding upon my heirs, successors, family members, and any and all persons acting in concert with me. I further understand that I am releasing not only the claims which were raised in the aforementioned lawsuit, but all claims, of any kind, nature or description whatsoever, whether they be in contract, tort, or otherwise, and whether they were raised or could have been raised in the litigation referenced above, for any actions or events that have occurred or that may have accrued up until the date of this Release. I also acknowledge that I have had the opportunity to review the terms of this Release with an attorney of my choosing, and, to the extent that I have not obtained that legal advice, I voluntarily and knowingly waive my right to do so.
_______________________________ Gertrude Douglas for herself and as legal guardian of Angela Douglas and Teresa Harris
County of _______________________

State of New York SUBSCRIBED and sworn to before me this _______ day of ______, 1999. __________________________________ Notary Public My commission expires: ___________________________________

 
 Case: 1:99-cv-526 As of: 09/26/2012 08:23 PM EDT 1 of 2
CLOSED_1999
U.S. DISTRICT COURT U.S. District Court, Western District of New York (Buffalo)
CIVIL DOCKET FOR CASE #: 1:99−cv−00526−WMS

USA v. Bank United, et al Assigned to: Hon. William M. Skretny Demand: $0 Cause: 28:1345 USA Plaintiff
Plaintiff USA

Date Filed: 07/28/1999 Date Terminated: 08/05/1999 Jury Demand: None Nature of Suit: 443 Civil Rights: Accommodations Jurisdiction: U.S. Government Plaintiff
represented by Bill Lann Lee US Department of Justice Civil Rights Division 950 Pennsylvania Ave., NW Washington, DC 20530 LEAD ATTORNEY ATTORNEY TO BE NOTICED
Eric I. Halperin US Department of Justice Civil Rights Division 950 Pennsylvania Ave., NW Washington, DC 20530 LEAD ATTORNEY ATTORNEY TO BE NOTICED
Isabelle M. Thabault U.S. Department of Justice Housing &Civil Enforcement Section P.O. Box 65998 Washington, DC 20035−5998 202−514−4738 LEAD ATTORNEY ATTORNEY TO BE NOTICED
Joan A. Magagna U.S. Department of Justice Civil Rights Division 950 Pennsylvania Ave., NW Washington, DC 20530−5998 (202) 514−2447 LEAD ATTORNEY ATTORNEY TO BE NOTICED
Mary Pat Fleming U.S. Attorney's Office Federal Centre 138 Delaware Avenue Buffalo, NY 14202 716−843−5867 Fax: 716−551−3196 Email: mary.pat.fleming@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED

V. Defendant

represented by

Case: 1:99-cv-526 As of: 09/26/2012 08:23 PM EDT 2 of 2

Bank United doing business as Commonwealth United Mortgage

R. Scott Davies Briggs and Morgan, P.A. 2400 IDS Center 80 South 8th Street Minneapolis, MN 55402 (616) 334−8400 LEAD ATTORNEY ATTORNEY TO BE NOTICED

Defendant Erika Steiniger

represented by R. Scott Davies (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 07/28/1999 07/29/1999 08/05/1999
08/05/1999

# Docket Text
1 COMPLAINT filed; (mj) (Entered: 07/29/1999)
No summons issued (pursuant to note from intake counter) (mj) (Entered: 07/29/1999)
2 CONSENT DECREE ( by USDJ William M. Skretny ) Notice and copy to R. Scott Davies, Eric I. Halperin, Isabelle M. Thabault, Bill Lann Lee, Joan A. Magagna, Mary Pat Fleming (JMD) (Entered: 08/05/1999)
Case closed (JMD) (Entered: 08/05/1999)