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InfoBytes

CONSUMER FINANCE HEADLINES & DEADLINES FOR OUR CLIENTS AND FRIENDS

Special Alert

March 7, 2006

Montgomery County Circuit Court Grants Preliminary Injunction on Implementation of Fair Housing Law Ordinance.

Today, Judge Michael D. Mason of the Circuit Court for Montgomery County, in the case of American Financial Services Association v. Montgomery County, MD (Civ. Action No. 269105-V), granted American Financial Services Association’s (AFSA) Motion for Preliminary Injunction, staying the implementation of Montgomery County’s discrimination ordinance (36-04) until the matter may be “finally resolved on its merits.” The next hearing in the case, which should determine whether Montgomery County’s enforcement of 36-04 should be permanently enjoined, is reportedly scheduled for July 6, 2006.

As previously reported in InfoBytes, on November 29, 2005, the County Council for Montgomery County, Maryland enacted the ordinance “to prevent discriminatory lending practices directed at households because of their race, color, religious creed, ancestry, national origin, sex, marital status, disability, presence of children, family responsibilities, source of income, sexual orientation, or age.” The ordinance prohibits discrimination, based on any of the aforementioned characteristics in a variety of practices including: brokering, servicing or purchasing loans; “steering,” as that term is defined in the ordinance; and making available a mortgage loan that “provides compensation paid directly or indirectly to a person from any source” (with “person” defined as including, among others, lenders and brokers). The ordinance identifies specific discriminatory lending practices and allows plaintiffs to recover up to $500,000 in damages for “humiliation and embarrassment.” Prior to Judge Mason’s order, the ordinance was scheduled to become effective tomorrow, March 8, 2006.

© Buckley Kolar, LLP 2006. INFOBYTES is not intended as legal advice to any person or firm. It is provided as a client service and information contained herein is drawn from various public sources, including other publications.

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