FEDERAL
DEPOSIT INSURANCE CORPORATION

      


      WASHINGTON,
D.C.

      


      
        	
                In
      the Matter of

              	
                )

              	 
      
	 
      	
                )

              	 
      
	
                FIRST
      MARINER BANK

              	
                )

              	
                STIPULATION
      AND CONSENT

              
	
                BALTIMORE,
      MARYLAND

              	
                )

              	
                TO
      THE ISSUANCE OF AN

              
	 
      	
                )

              	
                ORDER
      TO CEASE AND DESIST,

              
	
                (INSURED
      STATE NONMEMBER BANK)

              	
                )

              	
                ORDER
      FOR RESTITUTION, AND

              
	 
      	
                )

              	
                ORDER
      TO PAY

              
	 
      	
                )

              	 
      
	 
      	
                )

              	
                FDIC-07-285b

              
	 
      	
                )

              	
                FDIC-08358k

              
	 
      	 
      	 
      


      

      


      Subject
to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO
CEASE AND DESIST, ORDER FOR RESTITUTION, AND ORDER TO PAY (CONSENT AGREEMENT) by
the Federal Deposit Insurance Corporation (FDIC), it is hereby stipulated and
agreed by and between a representative of the Legal Division of the FDIC and
First Mariner Bank, Baltimore, Maryland (Respondent) as follows:

       

      1.           The
Respondent has been advised of its right to receive a NOTICE OF CHARGES AND OF
HEARING AND NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTY, FINDINGS OF FACT, AND
CONCLUSIONS OF LAW (collectively, NOTICE) detailing the unsafe or unsound
banking practices and violations of law and/or regulations alleged to have been
committed by the Respondent for which an ORDER TO CEASE AND DESIST, ORDER FOR
RESTITUTION, AND ORDER TO PAY (ORDER) may issue against the Respondent pursuant
to sections 8(b)(1), 8(b)(6), and 8(i)(2) of the Federal Deposit Insurance Act
(Act), 12 U.S.C. §S 1818(b)(1), 1818(b)(6), and 1818(i)(2).


      
        
           


        

        
          
          

          
            

          

        

        
           


        

      


      2.           Respondent
has been further advised of its right to a hearing on the alleged charges under
sections 8(b) and 8(i)(2) of the Act, 12 U.S.C. §S 1818(b) and 1818(1)(2), and
the FDIC Rules of Practice and Procedure, 12 C.F.R. Part 308.

       

      3.           The
Respondent is represented by counsel.

       

      4.           The
Respondent admits that the FDIC is the appropriate Federal banking agency to
maintain this enforcement action pursuant to section 3(q)(3) of the Act, 12
U.S.C.1813(q)(3), and that the FDIC has jurisdiction over it and the subject
matter of this proceeding.

       

      5.           The
FDIC has reason to believe that the Respondent engaged in unsafe or unsound
banking practices and violations of law and/or regulations in connection with
its mortgage lending activities, including, but not limited to, engaging in a
pattern or practice of discrimination by charging higher prices to certain
Hispanic, Black, and female borrowers, in the form of discretionary interest
rate and point "overages," than those charged to similarly-situated White or
male borrowers, as applicable, and issuing deceptive loan disclosures for
payment option adjustable rate mortgages.  Specifically, the FDIC has
reason to believe the Respondent engaged in violations of:

       

      (a) the
Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 et seq., and Regulation B of
the Board of Governors of the Federal Reserve System, 12 C.F.R. Part
202;

       

      (b) the
Fair Housing Act, 42 U.S.C. 'SS 3601 et seq., and the Fair Housing
Act Regulations of the Department of Housing and Urban Development, 24 C.F.R.
Part 100; and

       

      (c)
section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1) (Section
5).


      
        
           


        

        
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      6.           The
Respondent, solely for the purpose of this proceeding pursuant to sections 8(b)
and 8(i)(2) of the Act, 12 U.S.C. §§ 1818(b) and 1818(i)(2), and without
admitting or denying any of the unsafe or unsound banking practices or
violations of law or regulations alleged in paragraph 5 of this CONSENT
AGREEMENT, hereby consents and agrees to the issuance of the ORDER by the FDIC,
consents and agrees to pay restitution in the amount of nine hundred and fifty
thousand dollars ($950,000), and further consents and agrees to pay a civil
money penalty in the amount of fifty thousand dollars ($50,000) to the Treasury
of the United States pursuant to the provisions of section 8(i)(2) of the Act,
12 U.S.C. §1818(i)(2).

       

      7.           In
the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER,
Respondent agrees not to seek or accept indemnification for the civil money
penalty assessed and paid in this matter.

       

      8.           The
Respondent further stipulates and agrees that such ORDER will be deemed to be an
order which has become final and unappealable under the Act, and that such ORDER
shall become effective upon its issuance by the FDIC and fully enforceable by
the FDIC pursuant to the provisions of the Act subject only to the conditions of
paragraph 9 of this CONSENT AGREEMENT.

       

      9.           In
the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER, it is
agreed that no action will be taken by the FDIC against the Respondent to
enforce the ORDER in the United States District Court unless the Respondent, its
affiliates, their successors or assigns, or their respective directors,
officers, employees, and agents, has violated or is about to violate any
provision of the ORDER.


      
        
           


        

        
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      10. In
the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER, the FDIC
will not initiate further administrative enforcement action against the Bank for
restitution or other borrower-specific remedies with respect to pricing
violations of ECOA and FHA in 2005, 2006 and 2007, or for violations of Section
5 relating to the Bank's Option ARM lending in 2005, 2006 and
2007.  Nothing in the foregoing release shall otherwise limit the FDIC
in the exercise of its supervisory authority or enforcement authority over the
Bank, including any action to enforce the terms of the ORDER; nor shall the
foregoing bind the FDIC in any manner in its capacity as receiver.

       

      11. The
Respondent hereby agrees and acknowledges that the terms and provisions of this
CONSENT AGREEMENT and the acceptance by the FDIC of this CONSENT AGREEMENT and
the issuance of the ORDER shall not bar, estop or otherwise prevent any other
federal or state agency or department from taking any action against the
Respondent, its affiliates, their successors or assigns, or any of the
Respondent's current or former institution-affiliated parties.

       

      12.           The
Respondent hereby waives:

       

      (a) the
receipt of a NOTICE;

       

      (b) all
defenses to the allegations to be set forth in the NOTICE;

       

      (c) a
hearing for the purpose of taking evidence on the allegations to be set forth in
the NOTICE;

       

      (d) the
filing of proposed FINDINGS OF FACT AND CONCLUSIONS OF LAW;

       

      (e) the
issuance of a RECOMMENDED DECISION by an administrative law judge in this
matter;

       

      (f) the
filing of exceptions and briefs with respect to such a RECOMMENDED DECISION;
and

       

      (g)
judicial review of the ORDER as provided by section 8(h) of the Act, 12 U.S.C. §
1818(h), or any other challenge to the validity of the ORDER.


      
        
           


        

        
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      Dated
this 22nd day of
April, 2009.

      


      
        
          
            
              	
                      FDIC

                    	 
      	
                      FIRST
      MARINER BANK

                    
	
                      LEGAL
      DIVISION

                    	 
      	
                      BALTIMORE,
      MARYLAND

                    
	 
      	 
      	 
      
	
                      BY:

                    	 
      	
                      BY:

                    
	 
      	 
      	 
      
	
                      /s/

                    	 
      	
                      /s/

                    
	
                      A.T.
      Dill, III

                    	 
      	
                      Anirban
      Basu

                    
	
                      Assistant
      General Counsel

                    	 
      	
                      Director

                    
	 
      	 
      	 
      
	 
      	 
      	
                      /s/

                    
	 
      	 
      	
                      Barry
      B. Bondroff

                    
	 
      	 
      	
                      Director

                    
	 
      	 
      	 
      
	 
      	 
      	
                      /s/

                    
	 
      	 
      	
                      Edith
      B. Brown

                    
	 
      	 
      	
                      Director

                    
	 	 	 
	 
      	 
      	
                      /s/

                    
	 
      	 
      	
                      John
      Brown, III Director

                    
	 
      	 
      	 
      
	 
      	 
      	
                      /s/

                    
	 
      	 
      	
                      Robert
      L. Caret

                    
	 
      	 
      	
                      Director

                    
	 
      	 
      	 
      
	 
      	 
      	
                      /s/

                    
	 
      	 
      	
                      Joseph
      A. Cicero

                    
	 
      	 
      	
                      Director

                    
	 
      	 
      	 
      
	 
      	 
      	
                      /s/

                    
	 
      	 
      	
                      Gregory
      Devou

                    
	 
      	 
      	
                      Director

                    


            

          

        

      


      
        
           


        

        
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                  /s/

                
	 
      	 
      	
                  Edwin
      F. Hale, Sr.

                
	 
      	 
      	
                  Director

                
	 
      	 
      	 
      
	 
      	 
      	
                  /s/

                
	 
      	 
      	
                  George
      H. Mantakos

                
	 
      	 
      	
                  Director

                
	 
      	 
      	 
      
	 
      	 
      	
                  /s/

                
	 
      	 
      	
                  John
      P. McDaniel

                
	 
      	 
      	
                  Director

                
	 
      	 
      	 
      
	 
      	 
      	
                  /s/

                
	 
      	 
      	
                  John
      J. Oliver, Jr.

                
	 
      	 
      	
                  Director

                
	 
      	 
      	 
      
	 
      	 
      	
                  /s/

                
	 
      	 
      	
                  Patricia
      L. Schmoke, M.D.

                
	 
      	 
      	
                  Director

                
	 
      	 
      	 
      
	 
      	 
      	
                  /s/

                
	 
      	 
      	
                  Hector
      Torres

                
	 
      	 
      	
                  Director

                
	 
      	 
      	 
      
	 
      	 
      	
                  /s/

                
	 
      	 
      	
                  Michael
      R. Watson

                
	 
      	 
      	
                  Director

                
	 
      	 
      	 
      
	 
      	 
      	
                  Comprising
      the Board of

                
	 
      	 
      	
                  Directors
      of

                
	 
      	 
      	
                  First
      Mariner Bank

                
	 
      	
                    

                	
                  Baltimore,
      Maryland

                


        

      


      
        
           


        

        
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