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33 ยป VISIT US ONLINE @ DSNEWS.COM FIFTH THIRD SETTLES DISCRIMINATION CLAIMS WITH DOJ Fifth ird Bancorp, Inc., has agreed to pay $1.52 million in a settlement with the U.S. Department of Justice, which charged that Fifth ird discriminated against loan applicants based on disability status. e discrimination lawsuit against Fifth ird came about as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD). e complaint alleged that the bank's mortgage unit violated the federal Fair Housing Act and the Equal Credit Opportunity Act by requiring some loan applicants to produce doctors' letters to verify Social Security disability income. "Today's announcement holds lending institutions accountable for their actions and is a reminder that every American has the right to apply for a home loan and live in the community of their choice," HUD assistant secretary for Fair Housing and Equal Opportunity Gustavo Velasquez said. As part of the settlement, Fifth ird agreed to train its underwriters and loan officers and monitor loan applications to ensure that ap- plicants are not requested to provide doctors' letters. "My office is proud to have participated with our fellow attorneys from the Department of Justice in reaching a resolution of this matter that protects those with disabilities from having this unnecessary, inappropriate, and illegal intrusion into the most private of their affairs," said Michael Moore, U.S. attorney for the Middle District of Georgia According to the Department of Justice, the Cranbrook Mortgage Corporation, a second defendant in the case, has revised its underwrit- ing practices and will pay $2,000 in compensa- tion to HUD loan applicants. Cranbrook will also conduct training of underwriters and loan officers similar to that which Fifth ird agreed to conduct. "Today's settlement continues the shift away from an industry practice that violates the Fair Housing Act and the Equal Credit Opportunity Act," Acting Assistant Attorney General Molly Moran for the Civil Rights Division said. Fifth ird was fully cooperative with the investigation of its lending practices conducted by the Department of Justice, according to the department. Fifth ird said in a statement that it was pleased to settle and "remains commit- ted to making mortgages available on a fair and equitable basis." is was not the first time in recent history that Fifth ird has agreed to a lawsuit settle- ment. In April 2013, the Cincinnati-based bank agreed to pay a total of $16 million to a number of plaintiffs, including Local 295/Local 851 IBT Employer Group Pension Trust and Welfare Funds, District No. 9, I.A. of M&AW Pension Trust, and Edwin B. Shelton, for allegedly misrepresenting itself in the subprime securities market. GOLDMAN SACHS, FHFA AGREE TO MULTIBILLION SETTLEMENT IN RMBS SUIT New York-based investment banking firm Goldman Sachs has agreed to pay $3.15 billion to settle a lawsuit filed by the Federal Housing Fi- nance Agency (FHFA) alleging that Goldman Sachs sold faulty residential mortgage-backed securities (RMBS) to GSEs Fannie Mae and Freddie Mac, for which FHFA is conservator. According to FHFA, under the terms of the settlement, Goldman Sachs will pay $2.15 billion to Freddie Mac and $1 billion to Fannie Mae to buy back the alleged faulty RMBS the two GSEs purchased between 2005 and 2007. FHFA estimates the worth of the settlement to be about $1.2 billion. e lawsuit, FHFA v. Goldman Sachs & Co., et al., named Goldman Sachs, related companies, and some individuals as defendants, according to FHFA. e suit was settled in the U.S. District Court of the Southern District of New York. "We are pleased to have resolved these mat- ters," Gregory K. Palm, EVP and general coun- sel of Goldman Sachs, said in a press release. e settlement makes Fannie Mae and Freddie Mac whole on their investment in the RMBS in question, and as part of the settle- ment, the two GSEs will release certain claims they previously made against Goldman Sachs with regards to those same RMBS, according to FHFA. A spokesperson for FHFA referred to the press release put out by the organization when asked for comment. e settlement with Goldman Sachs was the 16th out of the 18 lawsuits FHFA has filed since 2011 with regards to RMBS.