Court Dismisses Claims Against HUD for Failure to Take Action to Guard Against Predatory Lending

摘要

The U.S. District Court for the Eastern District of New York dismissed claims against HUD for failure to take action to combat housing discrimination by homeowners who claim they were victims of predatory lending. (Vaughn v. Consumer Home Mortgage Company, Inc., No. 01-CV-7937(ILG), 2006 WL 2239324 (E.D.N.Y.), August 4, 2006) The plaintiffs purchased homes in Brooklyn with FHA-insured mortgages at what they alleged were inflated prices. They agued that HUD had a duty to prevent housing discrimination against them as African-American home buyers and that its failure to institute policies to protect against manipulation by predatory lenders abrogated that duty.