HUD, US BANK SETTLE DISABILITY DISCRIMINATION CLAIM
January 23, 2013
by

Category: News || Housing & Development
No Comments

Bank to pay Minnesota man $12,000 and change its policy on Social Security payments

WASHINGTON, DC – January 23, 2013 – (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) announced today that Bloomington, Minnesota-based U.S. Bank National Association will pay $12,000 to a loan applicant with disabilities under a Conciliation Agreement settling allegations that the bank required him to provide unnecessary documentation to establish he would continue receiving disability income for three years before they would approve his mortgage loan.

The Fair Housing Act makes it illegal to discriminate in the terms and conditions of a loan based on a person’s disability, including by imposing different loan application or qualification criteria.

“Holding persons with disabilities to a different standard because they rely on disability-related income violates the Fair Housing Act,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “Reasonable income standards are a necessary part of the underwriting process but HUD will continue to take action when these practices are discriminatory.”

A Roseville, Minnesota man filed a complaint with HUD alleging U.S. Bank asked him to provide proof that his disability income, including Social Security Supplemental Security Income (SSI), would continue for three years. The applicant submitted documentation from the Social Security Administration as part of his mortgage application. Additional documentation was not needed because Social Security award letters without expiration dates establish continuity of income for three years.

Under the terms of the Conciliation Agreement, U.S. Bank agreed to pay the man $12,000, accept SSI award letters as establishing at least three years’ income, and refrain from requiring applicants receiving disability income to provide doctors’ statements concerning the nature, severity, or duration of a disability.

###

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at www.hud.gov and
http://espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD’s News Listserv.

Contact:
Shantae Goodloe
(202) 708-0685



 


 

Related posts:

  • BANK OF AMERICA AGREES TO PAY MORE THAN $160,000 TO SETTLE MATERNITY DISCRIMINATION CLAIM
    WASHINGTON, DC - June 11, 2012 - (RealEstateRama) -- The U.S. Department of Housing and Urban Development (HUD) announced today that Bank of America has agreed to pay up to $161,180 to settle allegations that one of the bank's San Jose, California branches refused to refinance the mortgage of an Irvine woman because she was on maternity leave. HUD reached...
  • HUD ANNOUNCES AGREEMENT WITH BANK OF AMERICA TO SETTLE LGBT DISCRIMINATION CLAIM
    WASHINGTON, DC - January 02, 2012 - (RealEstateRama) -- The U.S. Department of Housing and Urban Development today announced an agreement with Bank of America (BOA) to settle a claim that the mortgage lender refused to provide financing to a lesbian couple. The agreement is the first enforcement action taken against a lender involving HUD’s recent rule ensuring that the...
  • HUD CHARGES BANK OF AMERICA WITH DISCRIMINATING AGAINST HOMEBUYERS WITH DISABILITIES
    WASHINGTON, DC - February 27, 2012 - (RealEstateRama) -- The U.S. Department of Housing and Urban Development (HUD) today announced that it is charging Bank of America with discriminating against homebuyers with disabilities. HUD alleges that Bank of America imposed unnecessary and burdensome requirements on borrowers who relied on disability income to qualify for their home loans and required some...

Recent Posts

Popular Posts