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Brown Investigates Whether Tenants' Rights Are Violated in Foreclosures

SACRAMENTO - Attorney General Edmund G. Brown Jr. today launched an investigation aimed at protecting the rights of the "forgotten victims" of the housing market collapse -- the tens of thousands of tenants facing eviction from buildings that have been foreclosed by banks. "Tenants who live in properties in foreclosure are the forgotten victims of the collapse of the housing market," Brown said. "We'll fight every step of the way to ensure they aren't rousted from their homes in violation of the law."

THE UNITED STATES FILES CIVIL COMPLAINT TO ENJOIN FRAUD IN GOVERNMENT INSURED MORTGAGE LOANS

Benton J. Campbell, United States Attorney for the Eastern District of New York, and Kenneth Donohue, Inspector General for the Department of Housing and Urban Development, announced the filing of a civil complaint against Madison Home Equities, Inc., a mortgage lender located in Carle Place, Long Island, seeking a court-ordered injunction to prevent the company from making loans insured by the Federal Housing Administration (“FHA”). The complaint also seeks relief against Madison’s president, Nadine Malone. The case is pending before United States District Judge Nicholas G. Garaufis. As alleged in the civil complaint, Madison participates in a federal program sponsored by the United States Department of Housing and Urban Development (“HUD”) which authorizes Madison to make mortgage loans that are insured by FHA in the event of default. As a condition of participation in the program, Madison must determine that all borrowers who receive FHA-insured mortgage loans meet HUD lending stand...

Justice Department and Equal Employment Opportunity Commission File Lawsuit Against the Housing Authority of El Paso, Texas

WASHINGTON - The Department of Justice and the Equal Employment Opportunity Commission (EEOC) have jointly filed a complaint in U.S. District Court for the Western District of Texas to enforce a mediation settlement agreement that was entered into by the EEOC on behalf of an individual and the Housing Authority of the City of El Paso (Housing Authority). The settlement agreement resolved a charge that was filed against the Housing Authority under Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment on the bases of sex, race, national origin and religion, and the Age Discrimination in Employment Act of 1967 (ADEA). The charging party claimed that she had been discriminated against on the basis of her national origin and her age when she was not selected for a promotion. In exchange for the dismissal of the charge, the Housing Authority agreed to pay the charging party $2,000, make certain changes to its promotional interview panels, and allow an outsid...