Trident Mortgage Company, LP

Documents in this case

• Complaint · July 2022 · 26 p.
• Consent order · Sept. 2022 · 30 p.
• Consent order · June 2025 · 1 p.

Case summary

On July 27, 2022, the Bureau, together with the United States Department of Justice (DOJ), filed a complaint and proposed consent order to resolve their allegations against Trident Mortgage Company, LP (Trident). The Bureau’s and DOJ’s joint complaint alleged that Trident violated the Equal Credit Opportunity Act, Regulation B, and the Consumer Financial Protection Act of 2010. The consent order, which the court entered on September 14, 2022, imposed injunctive relief and a civil money penalty. The states of Delaware, New Jersey, and Pennsylvania entered into concurrent agreements with Trident.

On May 23, 2025, the Bureau and the DOJ filed an unopposed motion to terminate the consent order and dismiss with prejudice. On June 2, 2025, the court terminated the September 14, 2022 consent order and dismissed the case with prejudice.

Complaint (July 2022)

PDF of this document (26 pages)

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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

CONSUMER FINANCIAL PROTECTION BUREAU, and UNITED STATES OF AMERICA,

Plaintiffs,

v.

TRIDENT MORTGAGE COMPANY LP,

Defendant.

) ) ) ) Civil Action No.

) ) ) JURY DEMAND ) ) ) ) )

COMPLAINT INTRODUCTION 1.

The Consumer Financial Protection Bureau (Bureau) and the United States of America (the United States) bring this action against Trident Mortgage Company LP (Trident) under the Fair Housing Act (FHA), 42 U.S.C. §§ 3601-3619, the Equal Credit Opportunity Act (ECOA), 15 U.S.C. §§ 1691-1691f, ECOA’s implementing regulation (Regulation B), 12 C.F.R. pt. 1002, and the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. § 5536(a)(1)(A), to remedy discrimination in Trident’s mortgage lending. 2.

The FHA and ECOA prohibit creditors, such as non-depository mortgage companies, from discriminating in home loans on the basis of race, color, national origin, and other characteristics. Under the FHA, it is unlawful to discriminate against any person in making available residential real estate-related credit transactions, in making available or denying a dwelling, and in the terms, conditions, or privileges of sale of a dwelling or the provision of services in connection with such a sale, on the basis of race, color, national origin, and other characteristics. 42 U.S.C. §§ 3604(a)-(b), 3605(a). ECOA and its implementing regulation, Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 1 of 23

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Regulation B, 12 C.F.R. pt. 1002, make it unlawful for a creditor to discriminate against an applicant in any aspect of a credit transaction on the basis of race, color, national origin, or other prohibited bases. ECOA and Regulation B also prohibit any statements, acts, or practices that would discourage on a prohibited basis a prospective applicant from applying for credit. 15 U.S.C. § 1691(a); 12 C.F.R. § 1002.4(b); 12 C.F.R. pt. 1002, Supp. I, ¶ 4(b)(1). 3.

From at least 2015 through 2019, Trident engaged in a pattern or practice of unlawful discrimination against applicants and prospective applicants, on the basis of race, color, or national origin, including by redlining majority-minority neighborhoods in the Philadelphia- Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area (Philadelphia MSA), and engaging in acts and practices directed at prospective applicants that would discourage prospective applicants from applying for credit. For the purposes of this Complaint, “minority” refers to people who identified as Black, Hispanic, Asian, Native American, Native Hawaiian, or Pacific Islander in the U.S. Census.

4.

“Redlining” is one type of discrimination prohibited under the FHA, ECOA and ECOA’s implementing regulation, Regulation B. Redlining occurs when lenders deny or discourage applications by avoiding providing loans and other credit services in neighborhoods based on the race, color, or national origin of the residents of those neighborhoods. 5.

From at least 2015 through 2019, Trident engaged in a pattern or practice of unlawful redlining. As alleged in detail herein, Trident avoided providing home loans and other home mortgage services in majority-minority neighborhoods in the Philadelphia MSA. Trident thereby discriminated against applicants and prospective applicants living in, or seeking credit to purchase properties in, majority-minority neighborhoods in the Philadelphia MSA. Trident also engaged in acts or practices directed at applicants and prospective applicants that discouraged Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 2 of 23

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those living in, or seeking credit to purchase properties in, these neighborhoods from seeking or applying for credit from Trident.

6.

From 2015 through 2019, Trident’s practices included locating and maintaining nearly all its offices and all its loan officers in majority-white neighborhoods and avoiding having offices in—or having loan officers serve—majority-minority areas. Trident also concentrated its outreach, advertising, and marketing in majority-white neighborhoods and avoided marketing to majority-minority areas. As a result of these practices, Trident discouraged applicants and prospective applicants, generating disproportionately low numbers of loan applications and home loans from majority-minority neighborhoods in the Philadelphia MSA compared to similarly situated lenders.

7.

Trident’s conduct and practices were intended to deny, and had the effect of denying, equal access to home loans for those residing in, or seeking credit for properties located in, majority-minority neighborhoods, and otherwise discouraged those individuals from applying for home loans on the basis of the race, color, or national origin of the residents of those neighborhoods. Trident’s conduct was not justified by a legitimate, non-discriminatory reason or business necessity and was not necessary to achieve a substantial, legitimate, non-discriminatory interest.

JURISDICTION AND VENUE 8.

This Court has subject-matter jurisdiction over this action because it is brought under federal laws, 12 U.S.C. § 5565(a)(1); 42 U.S.C. § 3614(a); 15 U.S.C. § 1691e(h), presents a federal question, 28 U.S.C. § 1331, and is brought by the United States and an agency of the United States, 28 U.S.C. § 1345.

9.

Venue is proper in the Court under 28 U.S.C. § 1391 and 12 U.S.C. § 5564(f), Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 3 of 23

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because Trident conducts business in, and a substantial part of the events or omissions giving rise to the claims occurred in, this judicial district.

PARTIES 10.

The Bureau is an independent agency of the United States created by the CFPA. 12 U.S.C. § 5491(a). The Bureau has independent litigating authority, including the authority to enforce the CFPA and ECOA. 12 U.S.C. §§ 5564(a)-(b), 5481(12)(D), (14). 11.

The United States brings this action to enforce the FHA and ECOA. The FHA and ECOA authorize the Attorney General to bring a civil action in federal district court whenever he has reason to believe that an entity is engaged in a pattern or practice of resistance to the full enjoyment of rights secured by the FHA and ECOA. 42 U.S.C. § 3614(a); 15 U.S.C. § 1691e(h). The FHA further authorizes the Attorney General to bring suit where the defendant has denied rights to a group of persons and that denial raises an issue of general public importance. 42 U.S.C. § 3614(a).

12.

Trident is a limited partnership incorporated in the State of Delaware and has locations in Delaware, New Jersey, and Pennsylvania. Between at least January 1, 2015 and December 31, 2020, Trident was a non-depository mortgage company licensed to originate mortgage loans in Delaware, New Jersey, and Pennsylvania. Trident was licensed to originate mortgage loans in Maryland beginning in October 2018. For purposes of this Complaint, the term “mortgage loans” refers to all loans that Trident and other creditors must report under the Home Mortgage Disclosure Act (HMDA), 12 U.S.C. §§ 2801-2810, and “mortgage lending” refers to providing those loans.

13.

Trident is a fully-owned subsidiary of Fox and Roach/Trident LP, which in turn is owned by HomeServices of America, Inc. The ultimate holding company of Trident is Berkshire Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 4 of 23

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Hathaway, Inc.

14.

From 2015 through 2019, Trident originated mortgage loans secured by one- to four-family properties. Most of its mortgage volume during this time consisted of home purchase transactions, and it made some refinance mortgage loans. 15.

From 2015 through 2019, about 80% of Trident’s mortgage loan application volume came from the Philadelphia MSA.

16.

Trident is subject to the FHA, ECOA, and their respective implementing regulations, 24 C.F.R. pt. 100, 12 C.F.R. pt. 1002. 17.

Trident is a “creditor” under ECOA, 15 U.S.C. § 1691a(e), and engaged in “residential real estate-related transactions” under the FHA, 42 U.S.C. § 3605. 18.

Trident is a “covered person” under the CFPA. 12 U.S.C. § 5481(6)(A), (15)(A)(i).

FACTUAL ALLEGATIONS 19.

Trident has acted to meet the credit needs of majority-white neighborhoods while avoiding serving the credit needs of majority-minority and high-minority neighborhoods in the Philadelphia MSA. Trident’s statements, acts, and practices directed at prospective applicants discouraged applications for credit for properties located in majority-minority and high-minority neighborhoods in the Philadelphia MSA.

20.

A “majority-minority” neighborhood or area comprises census tracts in which more than 50% of the residents reported their race and ethnicity in the U.S. Census as Black, Hispanic, Asian, Native American, Native Hawaiian, or Pacific Islander. A “high-minority” neighborhood or area comprises census tracts in which more than 80% of the residents reported Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 5 of 23

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their race and ethnicity in the U.S. census as Black, Hispanic, Asian, Native American, Native Hawaiian, or Pacific Islander.

21.

The Philadelphia MSA comprises 11 counties in four states: New Castle County in Delaware; Cecil County in Maryland; Burlington County, Camden County, Gloucester County, and Salem County in New Jersey; and Bucks County, Chester County, Delaware County, Montgomery County, and Philadelphia County in Pennsylvania. 22.

As of 2019 1, the population of the Philadelphia MSA was 6,102,434, of which 20% were Black people (non-Hispanic), 10% were Hispanic people, 6% were Asian people, and 61% were non-Hispanic white people.

23.

The Philadelphia MSA comprises 1,464 residential census tracts of which 425 (29%) are majority-minority census tracts. Two-hundred and forty-seven (17%) of the tracts are high-minority as well as majority-minority. The population of the 425 majority-minority census tracts in the MSA is 53.2% Black people (non-Hispanic), 18.5% Hispanic people, 5.9% Asian people, and 19.4% non-Hispanic white people.

24.

These majority-minority and high-minority census tracts are concentrated in the Philadelphia Metropolitan Division (Philadelphia MD) and the Camden Metropolitan Division (Camden MD). Of the 425 majority-minority census tracts in the Philadelphia MSA, 279 (65.6%) are in the Philadelphia MD and 70 (16.5%) are in the Camden MD. Of the 247 highminority census tracts in the Philadelphia MSA, 189 (76.5%) are in the Philadelphia MD and 39 (15.8%) are in the Camden MD.

25.

On November 19, 2020, the Bureau made a referral to the Department of Justice after concluding that Trident violated ECOA, 15 U.S.C. § 1691(a)(1), and Regulation B, 12

1 All demographic data discussed in this Complaint is based on 2019 American Community Survey data from the United States Census Bureau.

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C.F.R. § 1002.4(b), “by intentionally redlining minority neighborhoods in the Philadelphia MSA by engaging in acts or practices directed at prospective applicants that would discourage reasonable people on the basis of race or national origin from applying for credit.” 26.

On January 27, 2021, the United States informed Trident that it had initiated an investigation into potential lending discrimination by Trident in violation of ECOA, 15 U.S.C. §§ 1691-1691f, and the FHA, 42 U.S.C. §§ 3601-3619.

27.

Trident represented that, as of April 8, 2021, it had discontinued mortgage origination operations and that its affiliate, Prosperity Home Mortgage, LLC (Prosperity), has taken over its lending operations. Prosperity employs or offered employment to almost all of Trident’s former employees, took over Trident’s offices that are co-located with its affiliate Fox and Roach LP (Fox & Roach), and continues, without interruption, to provide mortgage services to customers in the same manner that Trident provided mortgage services. Trident’s Office Locations Were Concentrated in Majority-White Neighborhoods 28.

Trident did not own or operate branches. Instead, Trident rented space in Fox & Roach’s real estate offices.

29.

From 2015 through 2019, Trident’s offices were located to serve the credit needs of residents in majority-white neighborhoods and to avoid serving the credit needs of residents in majority-minority and high-minority neighborhoods.

30.

From 2015 through 2019, Trident operated 53 offices, of which 51 were in majority-white neighborhoods. All those office locations could accept mortgage loan inquiries from prospective applicants and were prominently displayed on Trident’s website. While 29% of the census tracts in the Philadelphia MSA are majority-minority, only two of Trident’s offices during that time were in a majority-minority neighborhood. Moreover, despite the fact that 17% Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 7 of 23

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of the census tracts in the Philadelphia MSA are high-minority, none of Trident’s offices was in a high-minority area. See Exhibit A.

31.

Of the two offices in majority-minority areas, one was in an area that was 53% minority residents and one was in an area that was 52% minority residents. 32.

Of the 53 offices, 13 were in the Philadelphia MD and 10 were in the Camden MD, which are the two areas within the Philadelphia MSA that have the highest concentration of residents who identify as a minority and have the largest number of majority-minority and highminority census tracts. Despite the high number of minority residents in the Philadelphia and Camden MDs, all 23 of these offices were in majority-white areas of the Philadelphia and Camden MDs.

33.

By concentrating nearly all its offices in majority-white areas, Trident discouraged residents of majority-minority areas from applying for and obtaining home loans from Trident and restricted their access to credit.

34.

From at least 2015 through 2019, Trident failed to take actions that would compensate for its lack of offices in majority-minority areas. For example, Trident did not assign any loan officers to solicit applications in majority-minority communities and failed to train or incentivize its almost exclusively white loan officers to lend in majority-minority areas. Trident’s Mortgage Loan Officers Served Majority-White Neighborhoods but Not Majority-Minority Neighborhoods

35.

From at least 2015 through 2019, Trident’s loan officers served the credit needs of majority-white neighborhoods but did not serve the credit needs of majority-minority neighborhoods.

36.

Trident relied primarily on its loan officers to generate loans and serve the credit needs of residents in the Philadelphia MSA.

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37.

Each loan officer was assigned to work at a specific office location where they met with customers and took applications. As noted above, almost all the office locations were in majority-white areas. Trident did not direct loan officers to generate loans in portions of the Philadelphia MSA not immediately around the loan officer’s assigned office. Trident did not direct or train its loan officers or other staff to take steps to serve the credit needs of majorityminority areas.

38.

From 2015 through 2019, Trident employed 68 mortgage loan officers in the Philadelphia MSA. Sixty-four of these 68 loan officers were white. 39.

The four non-white loan officers were Black; by 2018 Trident had terminated two of the Black loan officers.

40.

From 2015 through 2017, Trident employed 50 assistant loan officers. Of the 50 assistant loan officers, Trident maintained race and ethnicity information for 40: 36 (90%) were white people; one (2.5%) was a Black person; one (2.5%) was a Pacific Islander person; one (2.5%) was a Hispanic person; and one (2.5%) was an Arab American person. 41.

Images of Trident’s loan officers and assistant loan officers were displayed on Trident’s website.

42.

Trident hired new loan officers based on word of mouth and recommendations from its existing mostly white loan officers. The existing loan officers were experienced with serving, and had ties to referral sources largely in, majority-white areas. Trident did not make efforts to hire loan officers experienced with serving, or with ties to referral sources in, the majority-minority portions of the Philadelphia MSA. Trident maintained no formal policies or procedures for recruiting new mortgage loan officers. Trident’s Marketing Targeted Majority-White Neighborhoods and Avoided Majority- Minority Neighborhoods Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 9 of 23

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43.

From 2015 through 2019, Trident’s primary method of marketing was via relationships with Fox & Roach real estate agents. As noted above, Trident’s offices were located in the Fox & Roach offices, which were overwhelmingly located in majority-white areas. Between at least January 2015 and May 2018, Trident made virtually no effort to market to residents of majority-minority neighborhoods.

44.

Although direct mailing was not Trident’s primary form of marketing, when it did send direct mail advertising, the advertising was focused in majority-white areas. From January 2015 through May 2018, Trident conducted a total of 15 direct mail marketing campaigns. Over 92% of those direct mailings were sent to majority-white areas. 45.

Each of the direct mailing campaigns contained advertising material with images of exclusively white-appearing models, or white loan officers. 46.

From 2015 through 2019, Trident also advertised to prospective applicants with open-house flyers for properties listed by real estate agents. Trident loan officers provided the flyers via email or through hard copies to real estate agents for distribution at open houses attended by real estate agents, potential homebuyers, and prospective applicants. Similar to its direct mail advertising, over 90% of Trident’s open house flyers were provided at open houses located in majority-white areas in the Philadelphia MSA. 47.

These flyers contained photos of Trident mortgage loan officers who were almost all white.

48.

The use of all white-appearing models and images of all white mortgage loan officers on Trident’s marketing materials discouraged residents in majority- and high-minority neighborhoods, or those seeking credit in those neighborhoods, from seeking credit from Trident in the Philadelphia MSA.

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49.

From 2015 through 2017, Trident used a third-party vendor to market to real estate agents, potential homebuyers, and prospective applicants using the Multiple Listing Service (MLS).

50.

Real estate agents working with Trident loan officers provided MLS listings for specific properties to potential homebuyers and prospective applicants. The third-party vendor generated Trident-specific brand marketing information on each selected MLS listing. The selected MLS listings were for properties that were overwhelmingly concentrated in majoritywhite areas (87.5%). Thus, only 12.5% of the selected MLS listings that included Trident advertising material were for properties in majority-minority census tracts, and only 5.8% of the selected listings were for properties located in high-minority census tracts. 51.

Trident’s marketing efforts discouraged residents and prospective applicants in majority- and high-minority neighborhoods from seeking credit from Trident in the Philadelphia MSA.

Racist or Discriminatory Emails and Photos Exchanged by Trident’s Lending Staff 52.

From at least 2016 through 2018, Trident loan officers sent and received emails via their Trident email accounts containing racial slurs and racist content, some of which indicated an intention to avoid lending in majority-minority neighborhoods. 53.

In several instances, loan officers or other Trident employees referred to properties in majority-minority areas as being in the “ghetto.” For example: a. A Trident mortgage loan officer emailed a Trident online lead coordinator regarding a consumer seeking prequalification, stating: “This one is in the ghetto. pass [sic] it along to ian. HAHAHAHAHHA kidding.” b. A Trident mortgage loan officer sent an email discussing a comparable Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 11 of 23

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property that was used in an appraisal, stating: “This comps [sic] street is like a ghetto and he knows it and if he doesn’t that’s even worse.” c. A Trident senior loan officer emailed another loan officer, stating: “talked to [agent]…. He said to stay away from sears street, its [sic] upper ghetto blocked off bad area just a heads up.”

54.

On another occasion, a Trident assistant loan officer received a racist email entitled “Being White, reminder” from a Fox & Roach employee. The Trident employee forwarded that email to several others. Among other things, the email stated: a. “Proud to be White;”

b. “You call me ‘White boy’, ‘Cracker’, ‘Honkey’, ‘Whitey’, ‘Caveman’... And that’s OK... But when I call you Nigger, Kike, Towel head, Sandnigger, Camel Jockey, Beaner, Gook, or Chink... You call me a racist.” c. “You rob us, carjack us, and shoot at us. But, when a white police officer shoots a black gang member or beats up a black drug dealer running from the law and posing a threat to society, you call him a racist.” d. “There is nothing improper about this email... But let’s see which of you are proud enough to send it on. I sadly don’t think many will.” e. “BE PROUD TO BE WHITE!”

55.

On another occasion, a Fox & Roach real estate agent forwarded an email to a Trident loan officer, entitled: “YOU KNOW WHEN YOU’RE IN THE HOOD.” The Trident loan officer forwarded the message to several others. The email contained several racist images and racial slurs, including:

a. A picture of a wheelbarrow filled with watermelons with a sign on the Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 12 of 23

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wheelbarrow that said, “Apply for a Credit Card Free Watermelon.” b. A picture purporting to show a liquor store sign with the message “SORRY— CLOSED A NIGGER ROBBED US… AGAIN.”

56.

On another occasion, a Fox & Roach real estate agent forwarded an email to a Trident loan officer and a Trident assistant loan officer with a subject line, “Quick Hide Kit For Illegals.” The email contained a video entitled, “Wetback-Quick Hide.” The video depicted a man hiding himself in an expandable metal tube.

57.

In 2019, Trident lending staff circulated a photo via email showing Trident’s Senior Vice President and General Sales Manager, whose responsibilities included hiring and overseeing loan officers, posing with others in front of a Confederate flag. Upon learning of this photo, Trident took no disciplinary action against this Senior Vice President or the lending employees who circulated the photo.

Trident’s Market Area and its Disproportionately Low Numbers of Home Loan Applications from Majority-Minority and High-Minority Neighborhoods

58.

Trident’s self-defined lending footprint included the entire Philadelphia MSA. Trident received 80% of its mortgage applications for properties located in that MSA. However, Trident’s lending demonstrated a pattern of disproportionately serving those areas of the MSA that are majority-white.

59.

Trident’s policies and practices alleged herein—including the concentration of nearly all its offices, loan officers, marketing, and outreach in majority-white neighborhoods— have discriminated against and discouraged applicants and prospective applicants in majorityminority neighborhoods and high-minority neighborhoods in the Philadelphia MSA from applying for and obtaining home loans and other mortgage-related services. See Exhibits B and C.

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60.

Trident’s own data on loan applications and originations, that it is required to report to regulators under HMDA, 12 U.S.C. §§ 2801-2811, confirms that Trident avoided serving majority-minority neighborhoods and high-minority neighborhoods in the Philadelphia MSA.

61.

From 2015 through 2019, Trident significantly underperformed its “peer lenders” in generating home mortgage applications from majority-minority neighborhoods in the Philadelphia MSA.

62.

The disparity between the rate of applications generated by Trident and the rate generated by its peer lenders from majority-minority neighborhoods and high-minority neighborhoods was both statistically significant—meaning unlikely to be caused by chance—and sizable in every year from 2015 through 2019.

63.

Specifically, of the 30,701 HMDA-reportable mortgage applications Trident generated for single-family dwellings from 2015 through 2019 in the Philadelphia MSA, 12% came from residents of majority-minority areas. By contrast, Trident’s peers generated 21.5% of their 134,901 applications from these same majority-minority neighborhoods. These disparities are statistically significant across the five-year period and in every year analyzed. 64.

The disparity was even greater in high-minority neighborhoods. While 4.1% of Trident’s applications came from high-minority areas, 10.8% of the peers’ applications came from the same high-minority areas. These disparities are statistically significant across the fiveyear period and in every year analyzed.

65.

In other words, from 2015 through 2019, Trident’s peer lenders generated applications from high-minority areas at more than two-and-a-half times the rate of Trident. 66.

Even when Trident generated applications from majority-minority and high- Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 14 of 23

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minority areas, the applicants themselves were disproportionately white. In high-minority census tracts, although less than 20% of the population was white, 51% of the applications from those who identified their race came from white applicants. In majority-minority census tracts, 56.2% were from white applicants.

67.

The statistically significant disparities between applications Trident generated from majority-minority and high-minority neighborhoods and those that its peers generated show that there were significant numbers of residents in majority-minority and high-minority areas in Philadelphia who were seeking home loans. Trident had no legitimate, non-discriminatory reason to draw so few applications from these areas.

68.

This data shows a statistically significant failure by Trident to draw applications for home loans and provide residential mortgage services to residents in majority-minority and high-minority neighborhoods on a non-discriminatory basis when compared with similarly situated lenders from 2015 through 2019.

Disproportionately Low Numbers of Home Loans Made in Majority-Minority and High- Minority Neighborhoods

69.

From 2015 through 2019, Trident significantly underperformed its peer lenders in making home loans in majority-minority neighborhoods in the Philadelphia MSA. 70.

The disparity between the rate of home loans that Trident made and the rate made by its peer lenders in majority-minority neighborhoods and high-minority neighborhoods was both statistically significant—meaning unlikely to be caused by chance—and sizable in every year from 2015 through 2019.

71.

Specifically, of the 22,960 HMDA-reportable loans Trident made for singlefamily dwellings from 2015 through 2019 in the Philadelphia MSA, 11.7% came from residents of majority-minority areas. By contrast, Trident’s peers made 16.2% of their 50,060 loans from Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 15 of 23

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these same majority-minority neighborhoods.

72.

These disparities are statistically significant across the five-year period and in every year analyzed.

73.

The disparity persists in high-minority neighborhoods. While 3.7% of Trident’s loans were made in high-minority areas, 6.9% of the peers’ loans were made in these same highminority areas. These disparities are statistically significant across the five-year period and in every year analyzed.

74.

In other words, from 2015 through 2019, Trident’s peer lenders made loans in high-minority areas at close to twice the rate of Trident. 75.

Even when Trident made loans in majority-minority and high-minority areas, the loans themselves were disproportionately made to white borrowers. In high-minority census tracts, although only 20% of the population was white, 38.5% of the loans to those who identified their race were made to white borrowers. In majority-minority census tracts, 57.7% were made to white borrowers.

76.

The statistically significant disparities between loans Trident made in majorityminority and high-minority neighborhoods and those that its peers made show that there were residents in majority-minority and high-minority areas in Philadelphia who were seeking and qualified for home loans. Trident had no legitimate, non-discriminatory reason to originate so few loans from these areas.

77.

This data shows a statistically significant failure by Trident to make home loans and provide residential mortgage services to residents in majority-minority and high-minority neighborhoods on a non-discriminatory basis when compared with similarly situated lenders from 2015 through 2019.

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Trident’s Intentional Failure to Improve its Lending to Black and Hispanic Applicants and Prospective Applicants and in Majority-Minority Communities

78.

Beginning in September 2015, Trident was aware that its operations were creating a risk of violating fair lending laws. Between September 2015 and April 2018, Trident received at least six separate reports from third-party vendors engaged to report on Trident’s fair lending performance. These reports consistently informed Trident that its application volume from Black and Hispanic potential borrowers, as well as for properties in high-minority and majorityminority neighborhoods, was low relative to both the overall population and to the performance of its peers.

79.

Before the Bureau informed Trident that it would be subject to a fair lending examination, Trident took no meaningful action in response to these analyses indicating that it was underserving Black and Hispanic borrowers and majority-minority neighborhoods, despite having knowledge of its underperformance and its redlining risk. 80.

The totality of Trident’s acts, policies, and practices described herein constitute unlawful discouragement and redlining of majority-minority and high-minority neighborhoods in the Philadelphia MSA.

81.

From 2015 through at least 2019, Trident engaged in acts or practices that, together and separately, discriminated against applicants and prospective applicants on the basis of the race, color, or national origin of the residents of majority-minority neighborhoods in the Philadelphia MSA, including by redlining and discouraging them from seeking or obtaining credit from Trident.

82.

Trident’s discriminatory practices as described herein were intended to discriminate and discourage, and had the effect of discriminating and discouraging, on the basis of race, color, or national origin.

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COUNT I: VIOLATIONS OF THE FAIR HOUSING ACT (By the United States of America)

83.

The United States incorporates all prior Paragraphs of the Complaint as if fully set forth herein.

84.

Trident’s policies and practices constitute the unlawful redlining of majorityminority communities in the Philadelphia MSA on account of the racial, color, and national origin composition of those communities. Trident’s policies and practices were intended to deny, and had the effect of denying, equal access to home loans to residents of majorityminority communities and those seeking credit for properties located in those communities. Trident’s conduct was not justified by business necessity or legitimate business considerations. 85.

Trident’s actions as alleged herein constitute:

a. Discrimination on the basis of race, color, and national origin in making available residential real estate-related transactions, or in the terms or conditions of residential real estate-related transactions, in violation of the Fair Housing Act, 42 U.S.C. § 3605(a), and its implementing regulation, 24 C.F.R. §§ 100.110(b), 100.120;

b. The making unavailable or denial of dwellings to persons because of race, color, and national origin, in violation of the Fair Housing Act, 42 U.S.C. § 3604(a), and its implementing regulation, 24 C.F.R. § 100.50(b)(3); and c. Discrimination on the basis of race, color, and national origin in the terms, conditions, or privileges of the sale or rental of dwellings, or 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 its implementing regulation, 24 C.F.R. §§ 100.50(b)(2), 100.65.

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86.

Trident’s policies and practices as alleged herein constitute: a. A pattern or practice of resistance to the full enjoyment of rights secured by the FHA; and b. A denial of rights granted by the FHA to a group of persons that raises an issue of general importance.

87.

Trident’s pattern or practice of discrimination was intentional and willful and was implemented with reckless disregard for the rights of individuals based on their race, color, and national origin.

88.

Persons who have been victims of Trident’s discriminatory policies and practices are “aggrieved” as defined in 42 U.S.C. § 3602(i), and may have suffered damages as a result of the Trident’s conduct in violation of the Fair Housing Act, as described above. COUNT II: VIOLATIONS OF THE EQUAL CREDIT OPPORTUNITY ACT (By the United States of America and the Consumer Financial Protection Bureau)

89.

The Plaintiffs incorporate all prior paragraphs of the Complaint as if fully set forth herein.

90.

Trident’s acts, policies, and practices as alleged herein constitute unlawful discrimination against applicants and prospective applicants, including by redlining majorityminority communities in the Philadelphia MSA and engaging in acts and practices directed at prospective applicants that would discourage prospective applicants from applying for credit on the basis of race, color, or national origin in violation of ECOA and Regulation B. 15 U.S.C. § 1691 et seq.; 12 C.F.R. § 1002.4(a)-(b).

91.

Trident’s policies and practices as alleged herein constitute a pattern or practice of discrimination and discouragement and resistance to the full enjoyment of rights secured by the Equal Credit Opportunity Act, in violation of ECOA. 15 U.S.C. § 1691e(h). Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 19 of 23

Page 21

92.

Trident’s pattern or practice of discrimination was intentional and willful and was implemented with reckless disregard for the rights of individuals based on their race, color, and national origin.

93.

Persons who have been victims of Trident’s discriminatory policies and practices are “aggrieved” as defined in 15 U.S.C. § 1691e(i), and may have suffered damages as a result of the Trident’s conduct in violation of the Equal Credit Opportunity Act, as described above. COUNT III: VIOLATIONS OF THE CONSUMER FINANCIAL PROTECTION ACT (By the Consumer Financial Protection Bureau)

94.

The Bureau incorporates all prior Paragraphs of the Complaint as if fully set forth herein.

95.

Section 1036(a)(1)(A) of the CFPA prohibits a covered person from offering or providing to a consumer any financial product or service not in conformity with “Federal consumer financial law” or otherwise committing any act or omission in violation of a “Federal consumer financial law.” 12 U.S.C. § 5536(a)(1)(A). 96.

The Equal Credit Opportunity Act is a federal consumer financial law. 12 U.S.C. §§ 5481(12)(D), 5481(14).

97.

Trident’s ECOA violations, described above in Count II, constitute violations of Section 1036(a)(1)(A) of the CFPA. 12 U.S.C. § 5536(a)(1)(A); 15 U.S.C. § 1691c(b). DEMAND FOR RELIEF The United States and the Bureau request that the Court enter an order that: (1) Declares that Trident’s acts and practices violate the FHA. 42 U.S.C. §§ 3601- 3619;

(2) Declares that Trident’s acts and practices violate ECOA. 15 U.S.C. §§ 1691- 1691f;

Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 20 of 23

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(3) Enjoins Trident, its agents, employees, successors, and all others in active concert or participation with Trident, from:

A.

Discriminating on account of race, color, or national origin in any aspect of their lending business practices;

B.

Discouraging applicants or prospective applicants on account of race, color, or national origin;

C.

Failing or refusing to take such affirmative 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; and D.

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;

(4) Awards damages, restitution, equitable, and other monetary relief, under 42 U.S.C. § 3614(d)(1)(B); 15 U.S.C. §§ 1691c(a)(9), 1691e(h); and 12 U.S.C. § 5565; (5) Assesses a civil money penalty against Trident in an amount authorized by 12 U.S.C. § 5565(c) and 42 U.S.C. § 3614(d)(1)(C); (6) Awards to the Plaintiffs the costs of bringing this action; and (7) Awards to the Plaintiffs such additional relief as the interests of justice may require.

Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 21 of 23

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DEMAND FOR JURY TRIAL The United States and the Bureau demand trial by jury in this action on all issues so triable.

Dated: July 27, 2022 Respectfully submitted, FOR THE CONSUMER FINANCIAL PROTECTION BUREAU: ERIC HALPERIN Enforcement Director DEBORAH MORRIS Deputy Enforcement Director /s/ Rebeccah Golubock Watson.____. REBECCAH GOLUBOCK WATSON (DC #989313) CHELSEA PETER Enforcement Attorneys Consumer Finance Protection Bureau 1700 G Street NW Washington, DC 20552 Telephone: (202) 435-7895 [email protected] [email protected] Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 22 of 23

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FOR THE UNITED STATES:

/s/ Jacqueline C. Romero JACQUELINE C. ROMERO

United States Attorney Eastern District of Pennsylvania

GREGORY B. DAVID Assistant United States Attorney Chief, Civil Division

GERALD B. SULLIVAN Assistant United States Attorney 615 Chester Street, Suite 1250 Philadelphia, PA 19106

Phone: (215) 861-8786

Fax: (215) 861-8618 [email protected]

KRISTEN CLARKE Assistant Attorney General Civil Rights Division

SAMEENA SHINA MAJEED Chief

LUCY G. CARLSON Deputy Chief

/s/ Sara L. Niles SARA L. NILES /s/ Abigail A. Nurse ABIGAIL A. NURSE /s/ Jennifer A. Slagle Peck JENNIFER A. SLAGLE PECK Trial Attorneys Housing & Civil Enforcement Section 950 Pennsylvania Ave. NW – 4CON Washington, DC 20530 Phone: (202) 514-4713 Fax: (202) 514-1116 [email protected] [email protected] [email protected]

Case 2:22-cv-02936 Document 1 Filed 07/27/22 Page 23 of 23

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Trident Offices County Boundaries Census Tracts 0-50% Minority 50-80% Minority 80-100% Minority Trident Office Locations- 2015-2019 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Census tract demographics derived from the American Community Survey (ACS) 5 Year Summary, 2019 Data Release, Table 03002. * Geospatial PDF - Layers can be toggled using a compatible viewer Case 2:22-cv-02936 Document 1-1 Filed 07/27/22 Page 1 of 1

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Trident Offices County Boundaries Trident App 2015 Trident App 2016 Trident App 2017 Trident App 2018 Trident App 2019 Census Tracts 0-50% Minority 50-80% Minority 80-100% Minority Trident Mortgage Applications - 2015-2019 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Census tract demographics derived from the American Community Survey (ACS) 5 Year Summary, 2019 Data Release, Table 03002. * Geospatial PDF - Layers can be toggled using a compatible viewer Case 2:22-cv-02936 Document 1-2 Filed 07/27/22 Page 1 of 1

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Trident Offices County Boundaries Trident Loans 2015 Trident Loans 2016 Trident Loans 2017 Trident Loans 2018 Trident Loans 2019 Census Tracts 0-50% Minority 50-80% Minority 80-100% Minority Trident Mortgage Originations - 2015-2019 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Census tract demographics derived from the American Community Survey (ACS) 5 Year Summary, 2019 Data Release, Table 03002. * Geospatial PDF - Layers can be toggled using a compatible viewer Case 2:22-cv-02936 Document 1-3 Filed 07/27/22 Page 1 of 1

Consent order (Sept. 2022)

PDF of this document (30 pages)

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Case 2:22-cv-02936-GEKP Document13 Filed 09/14/22 Page 1 of 30

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA Consumer Financial Protection Bureau and

United States of America, Case No. 2:22-cv-02936-GEKP

Plaintiffs, v. CONSENT ORDER Trident Mortgage Company LP, Defendant.

INTRODUCTION

The Consumer Financial Protection Bureau (Bureau) and the United States of America (United States) (together, the Plaintiffs), commenced this civil action to obtain injunctive and monetary relief and civil penalties from Trident Mortgage Company LP (Trident or Defendant). The Complaint alleges violations of the Fair Housing Act (FHA), 42 U.S.C. §§ 3601-3619, the Equal Credit Opportunity Act (ECOA), 15 U.S.C. §§ 1691-1691f, and the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. § 5536(a)(1)(A), in connection with Trident’s mortgage lending in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area (Philadelphia MSA). Plaintiffs allege that Trident unlawfully discriminated by redlining Majority-Minority Neighborhoods, as defined below, in its residential mortgage lending. |

The Bureau, the United States, and Trident (together, the Parties) agree to entry of this Consent Order (Order), without adjudication of any issue of fact or law, to settle and resolve all

matters in dispute arising from the conduct alleged in the Complaint.

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Trident Mortgage Company LP has represented that it has discontinued mortgage

origination operations. Trident is a subsidiary of HomeServices of America, Inc. (HSOA).

FINDINGS l. This Court has jurisdiction over the parties and the subject-matter of this action. 2. Trident neither admits nor denies the allegations in the Complaint, except as

specified in this Order. For purposes of this Order, Trident admits the facts necessary to establish the Court’s jurisdiction over Trident and the subject matter jurisdiction related to the Lawsuit Subject Matter.

3. Trident waives all rights to seek judicial review or otherwise challenge or contest the validity of this Order and any claim it may have under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action to the date of this Order. Each Party agrees to bear its own costs and expenses, including, without limitation, attorneys’ fees. 4, Entry of this Order is in the public interest. DEFINITIONS 5. The following definitions apply to this Order: a. “Compliance Committee” is a committee established by Trident that will ensure compliance with the terms of this Order. b. “Covered Staff and Officials” means members of Trident’s Compliance Committee and managers, employees, or agents of the Lender, HSOA, or Trident; who have responsibilities related to the Lawsuit Subject Matter. c. “Effective Date” means the date on which the Court enters this Order. d. “HomeServices of America” or “HSOA” means HomeServices of America,

Inc., a parent company of Trident, as well as any of HomeServices of

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America’s successors and assigns.

e. “Lawsuit Subject Matter” means allegations that Trident violated the FHA, ECOA, and/or the CFPA in connection with Trident’s mortgage lending in the Philadelphia MSA through unlawful discrimination by redlining Majority- Minority Neighborhoods in its residential mortgage lending.

f. “Lender” is the entity Trident contracts with to administer and make loans under the Loan Subsidy Fund and carry out other Conduct Provisions as required under this Order. Trident will not serve as the Lender under this Order.

g. “Majority-Minority Neighborhood,” or “Majority-Minority Census Tract” means a census tract in which more than 50% of the residents are identified in the U.S. Census as in a group other than white Non-Hispanic, including Black, Hispanic, Asian, Native American, Native Hawaiian, or Pacific Islander.

h. “Non-objection” means written notification to Trident that there is no objection to a proposal by Trident for a course of action. Non-objections will be provided as soon as practicable and will not be unreasonably withheld. Failure by Plaintiffs to submit such written notification, proposed revisions, or written meet-and-confer request within 60 days of a submission by Trident will be deemed a Non-objection.

i. “Philadelphia MSA” means the Philadelphia-Camden- Wilmington, PA-NJ- DE-MD Metropolitan Statistical Area.

j. “Related Consumer Action” means a private action by or on behalf of one or

more consumers or an enforcement action by another governmental agency

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brought against Trident based on the Lawsuit Subject Matter.

k. “Trident” means Trident Mortgage Company LP, a subsidiary of HomeServices of America, Inc., as well as any of Trident’s successors and assigns,

CONDUCT PROVISIONS Section I: Nondiscrimination Injunction

6. Trident, and its officers, agents, servants, and employees, are permanently restrained from engaging in any act or practice that constitutes redlining in violation of the Fair Housing Act, 42 U.S.C. §§ 3601-3619, the Equal Credit Opportunity Act, 15 U.S.C. § 1691- 1691f or Regulation B, 12 C.F.R. part 1002. The terms “officers, agents, servants, and employees” shall comport with the interpretation of these terms under Fed. R. Civ. Proc. 65(d)(2)(B). Nothing else in this Order will be read as an exception to this Paragraph.

Section II; Loan Subsidy Program

7. Within 10 days of the Effective Date, Trident must reserve or deposit into a segregated deposit account at a federally insured financial institution Eighteen Million Four Hundred Thousand dollars ($18,400,000) for the purpose of funding a Loan Subsidy Program to

increase the credit extended in Majority-Minority Neighborhoods in the Philadelphia MSA to

remedy Trident’s alleged redlining in violation of the FHA and ECOA (Loan Subsidy Program).

The investment under the Loan Subsidy Program will consist only of the cost of providing the subsidies to consumers described in Paragraph 9 and not the cost of implementing the Loan Subsidy Program.

a. Trident has ceased accepting new inquiries or loan applications for mortgage

loans. Accordingly, Trident will comply with the requirement to make loans

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under the Loan Subsidy Program by contracting with a Lender to administer and make loans under the Loan Subsidy Program. Within 14 days of the Effective Date, Trident will identify the Lender, subject to the Non-objection of Plaintiffs. Within 30 days of receiving Non-objection, Trident will enter into a contract between the Lender and Trident (the Lender Contract), which will be subject to the Non-objection of Plaintiffs. The Lender Contract will require the Lender to comply with the provisions of this Order including the Remedial Plan required under Section IX and must require it to work cooperatively with Trident and the Plaintiffs in the conduct of such activities. The Lender must be licensed to originate residential mortgage loans in all Majority-Minority Census Tracts in the Philadelphia MSA, and Trident must include a copy of the signed Lender Contract in the Remedial Plan.

b. The Loan Subsidy Program must offer residents or prospective residents in Majority-Minority Neighborhoods in the Philadelphia MSA home mortgage loans on a more affordable basis than otherwise available from the Lender. Loans originated under this program must not exceed the conforming loan limit established by the Federal Housing Finance Agency.

8. The Lender will subsidize home mortgage loans made to “qualified applicants” with funds from the Loan Subsidy Fund. A “qualified applicant” is any applicant who (i) applies for a mortgage for a residential property located in a Majority-Minority Census Tract in the Philadelphia MSA that will serve as the applicant’s primary residence, or (ii) is qualified to participate in a Special Purpose Credit Program consistent with the goals of Section II and

subject to the Non-objection of the Plaintiffs. A qualified applicant must in all cases be qualified

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for a residential mortgage loan under the underwriting standards that Lender applies to the loans it originates,

9. Loan subsidies under the Loan Subsidy Program must be provided throughout the term of the Order as set forth in Section XVIII, so long as funds remain in the Loan Subsidy Fund, through any of the following means, or a combination thereof:

a. originating a loan for a home purchase, refinancing, or home improvement at an interest rate below the otherwise prevailing market interest rate offered by the Lender;

b. down payment assistance in the form of a direct grant;

c. closing cost assistance in the form of a direct grant;

d. payment of the initial mortgage insurance premium on loans subject to such mortgage insurance; or

e, other appropriate assistance measures approved by the Plaintiffs in writing.

10. The Lender will retain the discretion to offer more than one, or all, of the forms of assistance in Paragraph 9 to qualified applicants on an individual basis as it deems appropriate subject to regulatory requirements. The Lender must exercise this discretion in a manner that is consistent with originating loans to qualified applicants with due reliance upon applicable underwriting guidelines, and will have discretion to provide the loan subsidy among its loan products. The combined forms of subsidies set forth in Paragraph 9 cannot exceed Ten Thousand dollars ($10,000) per qualified applicant unless Trident receives Non-objection from Plaintiffs to increase that amount.

11. No provision of this Order, including the Loan Subsidy Program, requires the

Lender to make a loan to a person who is not qualified for the loan based upon lawful,

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nondiscriminatory terms; however, the Lender may choose to apply more flexible underwriting standards in connection with the Loan Subsidy Program. The underwriting standards applied to residents of Majority-Minority Neighborhoods will be no less favorable than the underwriting standards applied to residents in other tracts.

12. Though the Lender has obligations under the Lender Contract and this Order, Trident is responsible for ensuring that the requirements of this Order, including each of the provisions within Paragraphs 7-12, are met.

Section I[I: Credit Needs Assessment and Report

13. Within 45 days of the Effective Date, Trident must secure and retain one or more independent third-party credit-needs-assessment consultants (CNA Consultant), with specialized experience in ensuring nondiscriminatory access to credit, subject to the Non-objection of the Plaintiffs, to begin an assessment of the credit needs of Majority-Minority Neighborhoods within the Philadelphia MSA. If the Plaintiffs object to one or more CNA Consultants Trident selects, Trident must identify new CNA Consultants to the Plaintiffs within 45 days of Plaintiffs’ objection. This credit needs assessment must include:

a. an analysis of the most recent available demographic and socioeconomic data describing the Majority-Majority Neighborhoods;

b. an evaluation (to include market research and interviews) of the credit needs of, and corresponding lending opportunities in, these Neighborhoods, including, but not limited to, the need for and feasibility of alternative mortgage and other credit products;

c. marketing meetings with real estate professionals to discuss product offerings,

competition, and the viability of obtaining more applications from Majority-

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Minority Neighborhoods;

d. consideration of how the Lender’s lending operations can be adjusted to serve the remedial goals of this Order;

e. areview of the availability and feasibility of relevant federal, state, and local governmental programs that are available to residents seeking and obtaining residential mortgage loans; and an evaluation of how participation in each of them would assist in achieving the remedial goals of this Order;

f. meetings with representatives of community organizations involved in promoting fair lending, home ownership, or residential development in affected Majority-Minority Neighborhoods; and

g. recommendations that address how each requirement of the Order as set forth in Paragraphs 7-12 and 15-31 should be carried out to best achieve the remedial goals of this settlement.

14. Within 90 days of being retained, the CNA Consultant must prepare a written report detailing the findings of the review (CNA Report) and provide the CNA Report to the Compliance Committee and to Plaintiffs.

Section IV: Training

15. Trident will ensure that all Covered Staff and Officials receive bi-annual training. The training will include topics on implicit racial bias, conduct that could constitute redlining, and how to detect, prevent, and remedy redlining, as well as training on Trident’s and the Lender’s obligations under ECOA, Regulation B, the FHA, and this Order. Trident will implement a system for each person referenced in this Paragraph to acknowledge that they

completed the fair lending training. All training attendees will be required to demonstrate

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proficiency, Trident will bear all costs associated with the trainings. The training will be conducted by an independent, qualified third-party trainer selected by Trident and subject to Non-objection by the Plaintiffs.

16. Within 60 days of the Effective Date, Trident will submit the qualifications of the third-party trainer described in Paragraph 15 to the Plaintiffs for Non-objection. Within 45 days of receiving Non-objection from the Plaintiffs regarding the independent, qualified third-party trainer, Trident will submit the proposed training curriculum to the Plaintiffs for Non-objection. Within 30 days of receiving Non-objection from the Plaintiffs regarding the proposed training curriculum, Trident will commence delivery of the training described in Section IV with training to conclude within 90 days of receiving Non-objection. Trident will provide a report that includes these acknowledgements to the Plaintiffs 45 days after it has completed the training. Any proposed changes to the third-party trainer or the training curriculum are subject to Nonobjection by the Plaintiffs.

Section V: Advertising and Outreach

17. Within 10 days of the Effective Date, Trident must reserve or deposit into a segregated deposit account at a federally insured financial institution Eight Hundred Seventy- Five Thousand dollars ($875,000) to be spent on the targeted advertising and outreach campaign described in Paragraphs 18-20.

18. The Lender Contract will require the Lender to undertake such advertising and outreach efforts, and will require the Lender’s name to appear in advertising materials and outreach programs. The advertising and outreach campaign will be informed by the findings and recommendations of the credit needs assessment required in Paragraphs 13-14, will advertise the

Lender’s residential loan products, including products for which the Loan Subsidy Program will

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be applied, and will seek to generate applications from qualified applicants for mortgage loans secured by properties in Majority-Minority Neighborhoods in the Philadelphia MSA. Specific details regarding the distribution channels to be used for advertising and outreach will be set forth in the Remedial Plan described in Paragraph 32.

19. | The Lender Contract will require the Lender to include on all of its print advertising and promotional materials, including digital and online advertising, referencing residential mortgage loans an equal housing opportunity logo, slogan, or statement, to the extent required by law. All radio or television advertisements will include an audible statement that the Lender is an “Equal Opportunity Lender” or “Equal Housing Lender.

20. In addition to the targeted advertising efforts described in Paragraphs 17-20, the Lender Contract will require the Lender to conduct quarterly outreach programs in the Philadelphia MSA for real estate professionals and entities engaged in residential real estaterelated business in Majority-Minority Neighborhoods in the Philadelphia MSA to inform them of the products and services that the Lender offers, including the Loan Subsidy Program in this Order, and to otherwise develop business relationships with them. These programs will be offered at locations reasonably convenient to the business operations of the invitees.

Section VI: Consumer Financial Education

21. Within 10 days of the Effective Date, Trident must reserve or deposit into a segregated deposit account at a federally insured financial institution Three Hundred Seventy- Five Thousand dollars ($375,000) for the purpose of funding a consumer financial education program designed to provide information, training, and counseling services about consumer finance to individuals in Majority-Minority Census Tracts in the Philadelphia MSA that will help

identify and support qualified loan applicants and will consider the results of the credit needs

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assessment required in Paragraphs 13-14 in so doing.

22. The Remedial Plan described in Paragraph 32 must specify that Trident will sponsor at least eight financial education events per year of the term of the Order commencing on the Effective Date offered by community and governmental organizations engaged in fair lending work, or through the Lender’s financial education programs. Salaries or other compensation for participating personnel of Trident or any of its affiliates, including HSOA or the Lender, will not be credited towards the amount spent on these programs. The financial education events may be conducted as in-person events offered at a location reasonably convenient to the invitees, including as virtual events.

23. These events will cover consumer finance and related matters to help identify qualified loan applicants from Majority-Minority Neighborhoods in the Philadelphia MSA.

24. These financial education events will be marketed toward residents of Majority- Minority Neighborhoods in the Philadelphia MSA and held at locations intended to be convenient to those residents.

Section VII: Physical Locations and Personnel to Serve Majority-Minority Neighborhoods

25. Subject to any applicable approval of the appropriate regulator or licensing agency, the Lender Contract will require the Lender to maintain at least 4 licensed branch locations located within Majority-Minority Neighborhoods in the Philadelphia MSA within [8 months of the Effective Date. The Lender Contract will also require that a minimum of 4 such offices remain in operation during the term of this Order, as set forth in Section XVIII. These offices will be in visible and accessible locations in the Majority-Minority Neighborhoods in the Philadelphia MSA.

26. All lending offices that the Lender operates within Majority-Minority

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Neighborhoods in the Philadelphia MSA will provide services generally commensurate with those services previously offered at Trident’s full-service offices, as well as any additional products or services the Lender may choose to offer as a result of the credit needs assessment.

27. Nothing in this Order precludes the Lender from opening or acquiring additional licensed branch lending offices.

28. The Lender Contract will require the Lender to employ a full-time Manager of Community Lending. For the term of this Order, as set forth in Section XVIII, Trident and the Manager of Community Lending will oversee the continued development of lending in Majority- Minority Neighborhoods within the Philadelphia MSA consistent with the action steps contained in the Remedial Plan; coordinate the community lending initiatives and outreach programs required under this Order; serve as a resource to the Lendet’s staff to encourage and develop more lending within Majority-Minority Neighborhoods within the Philadelphia MSA; promote financial education and counseling within the Philadelphia MSA; and build relationships with community groups within the Philadelphia MSA.

29, The Lender Contract will require that, within 180 days of the Effective Date, no fewer than 4 full-time mortgage loan officers are assigned to solicit applications primarily from Majority-Minority Neighborhoods within the Philadelphia MSA, The Lender Contract will require that such loan officers are assigned to cover all Majority-Minority Census Tracts within the Philadelphia MSA, and that these loan officers have the opportunity to earn compensation similar to other loan officers for the work that they will perform in the Majority-Minority Neighborhoods. These mortgage loan officers shall not be precluded from also originating loans for applicants outside of the Philadelphia MSA.

Section VIII: Community Development Partnership Program

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30. Within 10 days of the Effective Date, Trident must reserve or deposit into a segregated deposit account at a federally insured financial institution Seven Hundred Fifty Thousand dollars ($750,000) to be spent on the partnerships described in this Paragraph. The Lender Contract will require the Lender to work with one or more community-based organizations or governmental organizations that provide (1) home repair or other grants designed to assist homeowners who experience financial distress or deferred maintenance on their properties, or (2) financial, homeownership, or foreclosure prevention services, in either case to the residents of Majority-Minority Neighborhoods in the Philadelphia MSA. The Lender will develop such partnerships in a manner consistent with achieving the remedial goals of this Order; specifically, the Lender will form partnerships with organizations that will aid it in establishing a physical presence in Majority-Minority Neighborhoods in the Philadelphia MSA; marketing its residential loan products in Majority-Minority Neighborhoods in the Philadelphia MSA; extending credit to qualified borrowers in Majority-Minority Neighborhoods in the Philadelphia MSA; and assisting with the revitalization and stabilization of the housing market in Majority-Minority Neighborhoods in the Philadelphia MSA.

31. During the life of the Loan Subsidy Program, the Lender will annually evaluate its partnership(s), to identify any required changes to the program to better meet the residential credit needs of Majority-Minority Neighborhoods in the Philadelphia MSA.

Section IX: Remedial Plan

32. Within 180 days of the Effective Date, Trident must develop and submit to the Plaintiffs a comprehensive compliance plan designed to ensure compliance with this Order and for implementing the Loan Subsidy Program that must, at a minimum:

a. include detailed steps for addressing each action required by this Order;

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33.

. describe in detail how the requirements of Section II will be implemented,

including proposing a methodology to calculate the total cost to Trident of the Loan Subsidy Program;

propose in writing how best to achieve the goals of the Order in light of the CNA Report;

describe in detail how the requirements of Section IV will be implemented; describe in detail how the requirements of Section V will be implemented; describe in detail how the requirements of Section VI will be implemented; describe in detail how the requirements of Section VII will be implemented, including identifying the specific sites that will serve Majority-Minority

Neighborhoods;

. describe in detail how the requirements of Section VIII will be implemented,

including a review of partner organizations initially identified; a summary of any meetings with these organizations; an examination of any relevant federal, state, or local governmental programs that may assist in serving the affected areas; the basis for the selection of the proposed partner(s); and a detailed description of how the partnership(s) will be implemented over the term of the Order as set forth in Section XVII];

include specific timeframes and deadlines for implementation of the steps described above; and

include the signatures of the Lender and any other entities responsible for

implementing the requirements of this Order.

Plaintiffs will have the discretion to make a determination of Non-objection to the

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Remedial Plan or to direct Trident to revise it. If the Plaintiffs direct Trident to revise the

Remedial Plan, the Compliance Committee must make the requested revisions and resubmit the

Remedial Plan to Plaintiffs within 30 days following the date on which the Plaintiffs notified Trident of the requested revisions.

34. After receiving notification that the Plaintiffs have made a determination of Nonobjection to the Remedial Plan, Trident must implement and adhere to the steps, recommendations, deadlines, and timeframes that will be specified in the Remedial Plan.

Section X: Role of the Compliance Committee

35. The Compliance Committee must review all submissions (including plans, reports, programs, policies, and procedures) required by this Order prior to submission to the Plaintiffs.

36. Although this Order requires Trident to submit certain documents for review or Non-objection by Plaintiffs, Trident is responsible for its own proper and sound management, and for ensuring that it complies with this Order and the FHA, ECOA, and applicable Federal | Consumer Financial Law as defined in 12 U.S.C. § 5481(14).

37. Ineach instance that this Order requires the Compliance Committee to ensure adherence to, or perform certain obligations of Trident, the Compliance Committee must:

a. authorize whatever actions are necessary for Trident to fully comply with the Order;

b. require timely reporting by management to the Compliance Committee on the status of compliance obligations; and

c, require timely and appropriate corrective action to remedy any material non-

compliance with any failures to comply with Compliance Committee

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directives related to Section X.

MONETARY PROVISIONS Section XI: Order to Pay Civil Money Penalty

38. Under Section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of the alleged violations of law in the Complaint, which Trident neither admits nor denies except as specified in Paragraph 2, and taking into account the factors in 12 U.S.C. § 5565(c)(3), Trident must pay a civil money penalty of Four Million dollars ($4,000,000) to the Bureau.

39. Within 10 days of the Effective Date, Trident must pay the civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring instructions.

40. The civil money penalty paid under this Order will be deposited in the Civil Penalty Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. § 5497(d).

41, Trident must treat the civil money penalty paid under this Order as a penalty paid to the federal government for all purposes. Regardless of how the Bureau ultimately uses those funds, Trident may not:

a. claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for any civil money penalty paid under this Order; or b. seek or accept, directly or indirectly, reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, with regard to any civil money penalty paid under this Order. Section XII: Additional Monetary Provisions IT IS FURTHER ORDERED that:

42. Inthe event of any default on Trident’s obligations to make payment under this

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Order, interest, computed under 28 U.S.C. § 1961, as amended, will accrue on any outstanding amounts not paid from the date of default to the date of payment, and will immediately become

due and payable.

43. Trident relinquishes all dominion, control, and title to the funds paid under this Order to the fullest extent permitted by law and no part of the funds may be returned to Trident. |

44. Under 31 U.S.C. § 7701, Trident, unless it already has done so, must furnish to the Plaintiffs its taxpayer-identification number, which may be used for purposes of collecting and reporting on any delinquent amount arising out of this Order.

45. Within 30 days of the entry of a final judgment, order, or settlement in a Related

Consumer Action, Trident must notify the Plaintiffs of the final judgment, order, or settlement in writing. That notification must indicate the amount of redress, if any, that Trident paid or is required to pay to consumers and describe the consumers or classes of consumers to whom that redress has been or will be paid. To preserve the deterrent effect of the civil money penalty in any Related Consumer Action, Trident may not assert that Trident is entitled to, nor may Trident benefit by, any offset or reduction of any monetary remedies imposed in the Related Consumer Action because of the civil money penalty paid in this action or because of any payment that the Bureau makes from the Civil Penalty Fund. If the court in any Related Consumer Action offsets | or otherwise reduces the amount of compensatory monetary remedies imposed against Trident

based on the civil money penalty paid in this action or based on any payment that the Bureau

makes from the Civil Penalty Fund, Trident must, within 30 days after entry of a final order

granting such offset or reduction, notify the Bureau and pay the amount of the offset or reduction

to the U.S. Treasury. Such a payment will not be considered an additional civil money penalty

and will not change the amount of the civil money penalty imposed in this action.

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Section XIII: Reporting Requirements IT IS FURTHER ORDERED that:

46. Trident must notify Plaintiffs, according to the Notice requirements set forth in Section XVI, of any development that may affect compliance obligations arising under this Order, including but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; the filing of any bankruptcy or insolvency proceeding by or against Trident; or a change in Trident’s name or address. Trident must provide this notice at least 30 days before the development or as soon as practicable after the learning about the development, whichever is sooner.

47. Within 7 days of the Effective Date, Trident must:

a. designate at least one direct telephone number and email, physical, and postal addresses as points of contact that the Plaintiffs may use to communicate with Trident;

b. identify all businesses for which Trident is the majority owner, or that Trident directly or indirectly controls, by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; and

c. describe the activities of each such business, including the products and services offered, and the means of advertising, marketing, and sales.

48. Trident must report any change in the information required to be submitted under Paragraph 46 at least 30 days before the change or as soon as practicable after learning about the change, whichever is sooner.

49. Within 120 days of receiving notice of Non-objection to the Remedial Plan, and

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then every year after receiving notice of Non-objection to the Remedial Plan, Trident must submit to the Bureau and the United States an accurate written compliance progress report sworn to under penalty of perjury (Compliance Report) that has been approved by the Compliance Committee, which, at a minimum:

a. lists each applicable Paragraph and subparagraph of the Order and describes in detail the manner and form in which Trident has complied with each such Paragraph and subparagraph of this Order;

b. describes in detail the manner and form in which Trident has complied with the Remedial Plan; and c. attaches a copy of each Order Acknowledgment obtained under Section XIV, unless previously submitted to the Plaintiffs.

Section XIV: Order Distribution and Acknowledgment

50. Within 7 days of the Effective Date, Trident must submit to the Plaintiffs an acknowledgment of receipt of this Order, sworn under penalty of perjury.

51. Within 30 days of the Effective Date, Trident must deliver a copy of this Order to all Covered Staff and Officials.

52. Trident must deliver a copy of this Order to any business entity resulting from any change in structure referred to in Section XIII including to the Lender, any future Compliance Committee members and executive officers, as well as to any managers, employees, or other agents who will have responsibilities related to the subject matter of the Order, including all Covered Staff and Officials, before they assume their responsibilities.

53, Trident must secure a signed and dated statement acknowledging receipt of a copy

of this Order, ensuring that any electronic signatures comply with the requirements of the E-Sign

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Act, 15 U.S.C. §§ 7001-7006, within 30 days of delivery, from all persons receiving a copy of this Order under Section XIV.

54. Within 90 days of the Effective Date, Trident must provide the Plaintiffs with a list of all persons and their titles to whom this Order was delivered through that date under Paragraphs 51 and 52 and a copy of all signed and dated statements acknowledging receipt of this Order under Paragraph 53.

Section XV: Recordkeeping IT IS FURTHER ORDERED that 55. Trident must create, for at least 2 years after full compliance with this Order as

described in Section XVII below, the following business records:

a. all documents and records necessary to demonstrate full compliance with each

provision of this Order, including all submissions to the Plaintiffs; and b. the following documents pertaining to the Loan Subsidy Program: the amounts loaned, amount of subsidy, type of subsidy, Universal Loan Identifier, type of loan, loan purpose, the property address of the collateral, and applicant race and ethnicity as reported under the Home Mortgage Disclosure Act.

56. Trident must retain these documents for at least 2 years after full compliance of this Order as set forth in Section XVIII below and make them available to Plaintiffs upon

Plaintiffs’ request.

57. Trident must maintain, for at least 2 years after full compliance with this Order as

set forth in Section XVII below:

a. copies of all training materials; advertisements; websites; and other marketing

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materials required under Section V, including any such materials used by a third party on Trident’s behalf or on behalf of the Lender;

b. for each individual borrower who received a loan under the Loan Subsidy Program: the consumer’s name, address, phone number, email address, a description of the loan received including describing the loan terms and the subsidies provided under the Loan Subsidy Program, and the date on which the loan closed;

c. all consumer complaints and refund requests (whether received directly or indirectly, such as through a third party), and any responses to those complaints or requests relating to the offering or provision of loans under the Loan Subsidy Program;

d. records showing, for each Covered Staff and Official providing services related to the Loan Subsidy Program, that person’s: name; telephone number; email, physical, and postal address; job title or position; dates of service; and, if applicable, the reason for departure or termination; and

e. records showing, for each service provider providing material services related to the administration of the Loan Subsidy Program, the name of a point of contact, and that person’s telephone number; email, physical, and postal address; job title or position; dates of service; and, if applicable, the reason for termination.

Trident must make these materials available to Plaintiffs upon the Plaintiffs’ request. Section XVI: Notices

IT IS FURTHER ORDERED that:

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58. Unless otherwise advised, in writing, by Trident, all material required of the Bureau and the United States by this Order will be sent by overnight delivery service or firstclass mail and contemporaneously by email with the subject line, “CFPB and United States of America v. Trident Mortgage Company LP, Case No. 2:22-cv-02936-GEKP,” to the recipients below at the identified addresses. Such material includes notification of Non-objection as contemplated in Paragraph 5(h).

Jonice Gray Tucker Partner

Paul Hastings LLP

2050 M Street NW

Washington, DC 20036 [email protected]

Michael Browne

Chief Legal Officer HomeServices of America, Inc.

6800 France Avenue South

Suite 610

Edina, MN 55435 [email protected]

W. Kurt Schumacher

Corporate Counsel

HomeServices of America, Inc.

6800 France Avenue South

Suite 610

Edina, MN 55435 [email protected]

59. Unless otherwise directed by the Bureau, all material required by this Order will be sent to the Bureau’s attorney(s) assigned to this matter with the subject line, “CFPB and United States of America v. Trident Mortgage Company LP, Case No. 2:22-cv-02936-GEKP,” by overnight delivery service or first-class mail to the below addresses and contemporaneously

by email to:

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Case 2:22-cv-02936-GEKP Document13 Filed 09/14/22

Rebeccah Golubock Watson

Chelsea Peter

Consumer Finance Protection Bureau 1700 G Street NW

Washington, DC 20552

Telephone: (202) 435-7895 Rebeccah. [email protected] [email protected]

and [email protected] and

Regional Director

Northeast Region

Consumer Financial Protection Bureau 140 E. 45th Street

4th Floor

New York, NY 10017

Page 23 of 30

60. All material required by this Order will be sent to the United States by email to

the Department of Justice attorney(s) assigned to this matter, and by commercial overnight

delivery service addressed as follows:

Sara L. Niles

Abigail A. Nurse

Housing and Civil Enforcement Section Civil Rights Division, U.S. Department of Justice 150 M Street NE, 8th Floor Washington, DC 20002

Attn: DJ# 175-41-230

Phone: (202) 514-4713

Fax: (202) 514-1116 [email protected]

Abigail. [email protected]

Section XVII: Compliance Monitoring

IT IS FURTHER ORDERED that, to monitor Trident’s compliance with this Order:

61. Within 30 days of receipt of a written request from Plaintiffs, Trident must submit

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additional compliance reports or other requested information, which must be sworn under penalty of perjury; provide sworn testimony; or produce documents.

62. Trident must permit Plaintiffs’ representatives to interview any employee or other person affiliated with Trident who has agreed to such an interview regarding: (a) the Lawsuit Subject Matter; or (b) compliance with this Order. The person interviewed may have counsel present.

63. Nothing in this Order will limit the Plaintiffs’ lawful use of compulsory process, under 12 C.F.R. § 1080.6.

Section XVIII: Administration

64. — The term of the Order is as follows. Trident’s obligations under Section I of this Order will remain in effect permanently. Unless a different duration is specified above, the other requirements of this Order will be in effect until the later of:

a. 90 days after the submission of a report by Trident to the Plaintiffs that demonstrates the fulfillment of all obligations to invest all money required by this Order; or

b. 5 years from the Effective Date.

65. Should Trident seek to transfer or assign all or part of the operations that are subject to this Order, Trident must, as a condition of the transfer or assignment, obtain the written agreement of the transferee or assignee to comply with all applicable provisions of this Order.

66. | Should HSOA or the Lender seek to transfer or assign all or part of the operations that are subject to this Order, HSOA or the Lender, as applicable, must, as a condition of the

transfer or assignment, obtain the written agreement of the transferee or assignee to comply with

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Sections II through VII of this Order.

67. By its signature HSOA fully and unconditionally guarantees the performance of Trident’s obligations under this Order, including, but not limited to all monetary obligations and _ matters relating to compliance with or enforcement of this Order, and will perform those obligations if Trident fails to satisfy them. HSOA submits to the jurisdiction of this Court for any matters relating to compliance with or enforcement of this Order. Trident and HSOA agree that the Bureau and the United States reserve the right to amend the Complaint to add HSOA as a required party under Rule 19 of the Federal Rules of Civil Procedure; provided that, before filing any motion under Rule 19, Plaintiffs must first notify Trident and HSOA and attempt to discuss the substance of the contemplated motion and any potential resolution. Trident and HSOA do not waive the right to present to the Court evidence related to whether Trident has satisfied its obligations under this Order.

68. Any time limits for performance may be extended by mutual written agreement of the parties with courtesy notice to the Court of any such agreement. Other modifications may be made only upon approval of the Court, by motion of any party.

69. The parties agree that litigation is not reasonably foreseeable. If any party implemented a litigation hold to preserve information, the party is no longer required to maintain it. Nothing in this Paragraph relieves either party of any other obligations imposed by the Order.

70. The Plaintiffs release and discharge Defendant from any and all potential liability for claims arising out of the Lawsuit Subject Matter before the Effective Date. This release does not preclude or affect any right of the Plaintiffs to determine and ensure compliance with the

Order, or to seek penalties for any violations of the Order.

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Section XIX: Retention of Jurisdiction IT IS FURTHER ORDERED that the Court will retain jurisdiction of this matter for the purpose of enforcing this Order.

i SO ORDERED, this “ ’ day of September, 2022.

TMH A TNE E.K. PRATTER

United States District Judge

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The undersigned hereby apply for and consent to the entry of this Consent Order: Dated: September 14, 2022 Respectfully submitted, FOR THE CONSUMER FINANCIAL PROTECTION BUREAU:

ERIC HALPERIN Enforcement Director

DEBORAH MORRIS Deputy Enforcement Director

/s/ Rebeccah Golubock Watson REBECCAH GOLUBOCK WATSON CHELSEA PETER

Enforcement Attorneys

Consumer Finance Protection Bureau 1700 G Street NW

Washington, DC 20552

Telephone: (202) 435-7895

Rebeccah. [email protected] [email protected]

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FOR THE UNITED STATES:

/s/ Jacqueline C. Romero JACQUELINE C. ROMERO United States Attorney

Eastern District of Pennsylvania

GREGORY B. DAVID Assistant United States Attorney Chief, Civil Division

GERALD B. SULLIVAN Assistant United States Attorney 615 Chester Street, Suite 1250 Philadelphia, PA 19106

Phone: (215) 861-8786

Fax: (215) 861-8618

~ Gerald. [email protected]

KRISTEN CLARKE Assistant Attorney General Civil Rights Division

SAMEENA SHINA MAJEED Chief

LUCY G. CARLSON Deputy Chief

/s/ Sara L. Niles

SARA L. NILES

/s/ Abigail A, Nurse

ABIGAIL A. NURSE

/s/ Jennifer A. Slagle Peck JENNIFER A. SLAGLE PECK Trial Attorneys

Housing & Civil Enforcement Section 950 Pennsylvania Ave. NW — 4CON Washington, DC 20530

Phone: (202) 514-4713

Fax: (202) 514-1116 [email protected]

Abigail. [email protected] Jennifer. Slagle. [email protected]

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FOR TRIDENT MORTGAGE COMPANY LP:

/s/ Jonice Gray Tucker

JONICE GRAY TUCKER

Partner

Paul Hastings LLP

2050 M Street NW

Washington, DC 20036

Telephone: (202) 551-1781 [email protected]

/s/ Kari_K. Hall

KARI K. HALL

Partner

Paul Hastings LLP

2050 M Street NW Washington, DC 20036 Telephone: (202) 551-1782 [email protected]

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FOR HOMESERVICES OF AMERICA, INC.:

/s/ Jonice Gray Tucker

JONICE GRAY TUCKER

Partner

Paul Hastings LLP

2050 M Street NW

Washington, DC 20036

Telephone: (202) 551-1781 [email protected]

/s/ Kari_K. Hall

KARI K. HALL

Partner

Paul Hastings LLP

2050 M Street NW Washington, DC 20036 Telephone: (202) 551-1782 [email protected]

Consent order (June 2025)

PDF of this document (1 pages)

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Case 2:22-cv-02936-KNS Document17_ Filed 06/02/25 Page1ofi1

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA Consumer Financial Protection Bureau and United States of America,

Plaintiffs, Case No. 2:22-cv-02936-KNS

Trident Mortgage Company LP,

Defendant.

ORDER The Consumer Financial Protection Bureau and the United States of America having moved the Court to terminate the Consent Order and dismiss this matter with prejudice, and with Trident Mortgage Company LP (Trident) consenting to the motion, and the Court being

sufficiently advised, IT IS HEREBY ORDERED that, with the consent of the Consumer Financial Protection

Bureau, the United States, and Trident, the Consent Order in this case is TERMINATED and

this case is DISMISSED WITH PREJUDICE.

KAIN. sCOTE United States District Judge