May 9, 2013
The FHA and HUD have issued a press release concerning two cases of alleged housing discrimination where settlements have been reached.
According to HUDNo.13-067, two conciliation agreements have been reached between the Department of Housing and Urban Development and 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.”
As the press release states, Fair Housing Act laws make it “unlawful to discriminate in residential real estate-related transactions based on race, color, national origin, religion, sex, disability, or familial status.” Lenders cannot, under the Fair Housing Act, deny a loan application because a person is pregnant, or deny a loan because the borrower has taken maternity OR paternity leave.
“A woman’s maternity status should not determine whether or not she receives a mortgage loan,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “The 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.”
The FHA/HUD press release states that under the terms of the agreement, 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. The Parental Leave Policy specifically prohibits asking mortgage applicants about their intent to take parental leave in the future. The policy also provides that mortgage applicants on or scheduled to be on parental leave may still qualify for loan approval and funding.”
We post stories like this as a reminder to our readers that the borrower is often the only line of defense against such discrimination–without reporting these cases, there may be no enforcement of Fair Housing Laws, or delayed enforcement. Any borrower who feels he or she has been discriminated against in the housing process should contact HUD immediately at (800) 669-9777.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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