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Showing posts from January, 2010

7th Circuit Carves out More Space for Post-Acquisition FHA Claims

Bloch v. Frischholz, 587 F.3d 771(7th Cir. 2009) Decided November 13, 2009 The 7th Circuit Court of Appeals unanimously held in Bloch v. Frischholz, that the Fair Housing Act (FHA) protects persons from discrimination not only before, but also after housing has been acquired. Though bright-line rules were not necessarily developed, the court discusses three provisions through which post-acquisition claims can now more clearly be established. Since 2004, after the Court's decision in Halprin v. Prairie Single Family Homes , the Fair Housing law in the 7th Circuit concerning post-acquisition conduct has been construed very narrowly because as the court stated,"the FHA by and large [is] concerned only [with] access to housing." Id. Halprin has lead many courts to focus on the timing of the discrimination rather than whether discrimination actually occurred. Bloch, to a certain extends, clarifies this area of the law by ruling that the FHA reaches a ...

FHA Reverse Redlining and Pleading Standards

United States District Court, N.D. California Hafiz v. Greenpoint Mortg. Funding, Inc. 652 F.Supp.2d 1039 July 16, 2009 Hafiz is significant to fair housing law because it re-articulates the manner in which a predatory-lending/reverse-redlining claim can be made under the FHA. It also shows how some courts are using the new more stringent pleading standards under Iqbal to dismiss federal claims. Plaintiff Majiman Hafiz's investment property was subject to foreclosure after falling behind in her monthly mortgage payments. In order to prevent the foreclosure sale of her property, Plaintiff alleged in her complaint that Defendant, Greenpoint Mortgage, failed to give her adequate time for review of the loan documents. Plaintiff also alleged that Defendant failed to disclose mortgage-related information as required by state and federal law. Plaintiff claimed that these alleged acts of excessive fee structures and failed disclosures on behalf of defendants resulted in the issuance ...