Bank to pay two couples who were denied loans
WASHINGTON, DC – May 9, 2013 – (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) announced today that it has reached two Conciliation AgreementsÂ with SunTrust Mortgage, Inc., settling allegations that the Richmond, VA-based lender denied mortgage loans to a couple in Port St. Lucie, FL, and another couple in Ashland, VA, because the women were on maternity leave.
The Fair Housing ActÂ makes it unlawful to discriminate in residential real estate-related transactions based on race, color, national origin, religion, sex, disability, or familial status.Â These prohibitions include denying a mortgage because a person is pregnant or takes maternity or paternity leave.
âA womanâs maternity status should not determine whether or not she receives a mortgage loan,â said John TrasviĂ±a, HUD Assistant Secretary for Fair Housing and Equal Opportunity.Â âThe Fair Housing Act prohibits lenders from denying home loans to women because they are pregnant or on maternity leave and HUD is committed to taking action against lenders engaged in discriminatory practices.â
A Port St. Lucie, FL, woman and her husband alleged that SunTrust had pre-approved them for a mortgage loan, but 14 days before closing, a loan officer informed them that the loan would not be approved unless she returned to work.
In the Ashland, VA, case, a couple alleged that the bank had provided a construction-to-permanent mortgage loan but delayed its conversion to a permanent loan until after the woman returned from maternity leave. Â The Fair Housing Act requires lenders to provide full and fair access to home mortgages regardless of a personâs sex or familial status, including pregnancy.
Under the terms of the agreements, SunTrust will pay each couple $18,000, adopt a parental leave policy that prohibits discriminatory mortgage lending due to parental leave, and train their employees on the fair lending requirements of the Fair Housing Act.Â The Parental Leave Policy specifically prohibits asking mortgage applicants about their intent to take parental leave in the future.Â Â The policy also provides that mortgage applicants on or scheduled to be on parental leave may still qualify for loan approval and funding.
Persons who believe they have experienced discrimination may file a complaint by contacting HUDâs Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 927-9275 (TTY). Housing discrimination complaints may also be filed by going to www.hud.gov/fairhousing, or by downloading HUDâs free housing discrimination mobile application, which can be accessed through Apple devices, such as the iPhone, iPad, and iPod Touch.
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.
- 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 REACHES SETTLEMENT WITH CONNECTICUT LENDER ACCUSED OF âMATERNITY DISCRIMINATIONâ
WASHINGTON, DC - November 3, 2011 - (RealEstateRama) -- The U.S. Department of Housing and Urban Development announced today that it has reached an agreement with Luxury Mortgage Corporation (LMC), a mortgage lender based in Stamford, Connecticut, settling accusations that the lender discriminated against a woman by denying her mortgage loan because she was on maternity leave. Under the settlement,...
- Justice Department Sues Nationâs Largest Mortgage Insurance Provider for Discrimination Against Women on Paid Maternity Leave
WASHINGTON, DC - July 5, 2011 - (RealEstateRama) -- The Justice Department announced today that it has sued the Mortgage Guaranty Insurance Corporation (MGIC), the nationâs largest mortgage insurance company, and two of its underwriters, Elgina Cunningham and Kelly Kane, for violating the Fair Housing Act by discriminating against women on paid maternity leave....
- HUD ANNOUNCES âMATERNITY DISCRIMINATION SETTLEMENTS,â KICKS OFF FAIR HOUSING MONTH
WASHINGTON, DC - April 5, 2012 - (RealEstateRama) -- The U.S. Department of Housing and Urban Development announced today that it has reached settlement agreements with Magna Bank in Nashville, TN, and Home Loan Center, Inc., in Irvine, CA, resolving allegations that the two lenders denied mortgage loans to women because they were pregnant and temporarily on maternity leave. HUD...
- HUD OBTAINS $20,000 âMATERNITY DISCRIMINATIONâ SETTLEMENT FOR CALIFORNIA FAMILY
WASHINGTON, DC - September 7, 2012 - (RealEstateRama) -- The U.S. Department of Housing and Urban Development (HUD) announced today a $20,000 settlement with Land Home Financial Services (LHFS) to resolve allegations the lender violated the Fair Housin......
- ERC and NCLR Investigation Uncovers Housing Discrimination against Latinos in Three Major Metropolitan Areas
- RE/MAX Named Top 50 Franchise for Minorities
- HUD CHARGES OWNER OF MARYLAND HOUSING COMPLEX WITH DISCRIMINATING AGAINST VICTIM OF DOMESTIC VIOLENCE
- Remembering former Boston Mayor Thomas M. Menino
- Consumer Advocacy Groups Submit Comment on the CFPBâs Proposed Home Mortgage Disclosure Act Data Rule
- FOR CITIES SEEKING ECONOMIC REVITALIZATION, HUD ANNOUNCES APPLICATION PERIOD TO JOIN NATIONAL RESOURCE NETWORK
- MCCLELLAN AND THE HANNA TEAM SELL STANDARD REGISTER BUILDING TO DELMARVA POWER
- Agorafy to Demo Innovative RE Tech Platform at Next Weekâs NYC Real Estate Expo & CRE // Tech Intersect Event
- Norton to Speak at 40th Anniversary of D.C. Home Rule Event, Tonight
- Patrick Administration Commits Funding to House Homeless Veterans
- Red Cross Superstorm Sandy Two Year Update