Articles Tagged With: HUD

October 16, 2014

HUD Awards Millions To Help Fight Housing Discrimination

In recent weeks we’ve seen a variety of press releases from the FHA/HUD discussing settlements in cases where HUD investigated alleged violations of the Fair Housing Act and other anti-discrimination housing laws. Now, the Department of Housing and Urban Development has issued a press release announcing millions of dollars in federal funds being awarded to agencies trying to raise awareness of Fair Housing laws. According to HUDNo. 14-123, “The U.S. Department of Housing and Urban Development (HUD) today awarded $38.3 million to more than 100 fair housing organizations and other non-profit agencies in 43 states and the District of Columbia to address housing discrimination.” The HUD press release says that competitive grants in this area are funded via the HUD Fair Housing Initiatives Program, “to help enforce the Fair Housing | more...

October 9, 2014

HUD Settles “Redlining” Discrimination Complaint

By Joe Wallace

Have you ever wanted to apply for an FHA home loan only to experience what may be illegal discrimination forbidden by the Fair Housing Act? In some cases the discrimination may not even reach the borrowers themselves, as evidenced by a recent settlement announced by the HUD official site. According to a October 2014 press release issued on the FHA/HUD official site, “The Department of Housing and Urban Development (HUD) announced today that it has negotiated a Conciliation Agreement with Illinois-based Midland States Bancorp, resolving allegations that the bank avoided doing business in predominantly African American and Hispanic neighborhoods in St. Louis, Missouri and northern Illinois.” Federal Fair Housing Act laws state that it is illegal to, “deny or discriminate in the terms and conditions of a mortgage or loan | more...

September 22, 2014

Fair Housing Act Violations: A Reader Question

By Joe Wallace

A reader asks, “I am trying to sell my manufactured home and the land it sets on to a couple that are not married from California, the lienholder refuses to do this because they are not married, isn’t this a violation of Federal Law?” The Fair Housing Act makes it illegal to discriminate against a house hunter–a buyer or renter–based on family status. That includes being married, not married, a single parent, etc. The Department of Housing and Urban Development official site (which is also home to the FHA official site) states the following basic information on the Fair Housing Act: “The Fair Housing Act covers most housing. In some circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use | more...

September 19, 2014

HUD Announces Settlement In North Dakota Housing Discrimination Case

By Joe Wallace

We post news stories about settlements in housing discrimination cases for several reasons, but one of the most important is to remind borrowers that FHA loan applications aren’t immune from problems such as these. The first line of defense against continued violations of the Fair Housing Act usually comes in the form of complaints filed against companies that violate federal law. With that in mind, we bring news of a recent settlement between HUD and a North Dakota company over housing discrimination complaints. According to press release HUDNo.14-106, ” The U.S. Department of Housing and Urban Development (HUD) announced today that it has reached an agreement with U.S. Bank National Association, U.S. Bank subsidiary Red Sky Risk Services, LLC (formerly known as USB Lending Support Services, LLC), and one of | more...

September 17, 2014

HUD Announces Settlement in Housing Discrimination Case

By Joe Wallace

The FHA/HUD official site recently issued a press release stating there was a settlement in a housing discrimination case involving a home loan applicant on maternity leave. According to HUDNo.14-105, “The U.S. Department of Housing and Urban Development announced today that Jackson, TN-based mortgage lender FirstBank Mortgage Partners will pay $35,000 to settle allegations that it violated the Fair Housing Act when it denied a mortgage loan to a couple because one applicant was on maternity leave.” Federal housing laws forbid lenders from discriminating against home loan applicants, “in the terms, conditions, or privileges associated with the sale or rental of a dwelling on the basis of sex or familial status, including denying a mortgage loan or mortgage insurance because an applicant is pregnant or on maternity leave.” According to | more...

July 24, 2014

FHA, HUD Announce Settlement In Housing Discrimination Case

By Joe Wallace

The FHA and HUD have announced a settlement in a New Hampshire housing discrimination case. According to HUDNo.14-089, a tenant filed two housing discrimination complaints against TKB Properties and the New England Family Housing Management Organization. Those complaints were settled and the settlement announced in the HUD/FHA press release. “The U.S. Department of Housing and Urban Development (HUD) announced today agreements with the owners and managers of two Berlin, New Hampshire properties, settling allegations that they engaged in housing discrimination when they refused to rent to a woman who was a victim of domestic violence. The Fair Housing Act makes it unlawful to discriminate in the sale or rental of housing because of race, color, national origin, religion, sex, disability, or familial status.” “No woman should be denied housing based on | more...

July 14, 2014

FHA and HUD Update Deed-In-Lieu and Pre-Foreclosure Sale Rules

By Joe Wallace

The FHA and HUD have issued a Mortgagee Letter updating the requirements for Deed-In-Lieu and Pre-Foreclosure sales for borrowers at risk of going into default on FHA home loans. Mortgagee Letter 2014-15, Updated Requirements for Pre-Foreclosure Sales (PFS) and Deeds in Lieu (DIL) of Foreclosure, completely updates and supersedes the previous FHA mortgagee letter in these areas. The new regulations could in some cases be implemented right away if participating lenders choose to do so, but FHA/HUD requirements state these rules will be in effect for all lenders as of October 1, 2014. The new guidelines include alterations or modifications of existing policy including the following as listed in the mortgagee letter: –Requirements for real estate agents and brokers participating in PFS transactions; –An initial listing period requirement for PFS | more...

July 8, 2014

FHA/HUD Announce Settlement In Discriminatory Ads Case

By Joe Wallace

The FHA and HUD have announced a settlement in a case involving discriminatory ads for housing. According to the press release found on the FHA/HUD official site, “The U.S. Department of Housing and Urban Development (HUD) announced today a Conciliation Agreement between the Connecticut Fair Housing Center (CFHC) and respondents Lil-1 Associates, AllPoints Realty and realtor Lillian Polak. The real estate companies will pay more than $24,000 to settle allegations that they published discriminatory listings and advertisements for condominiums specifying that children were not permitted.” Borrowers who want to buy a condo unit with FHA mortgage loans don’t always experience this type of illegal discrimination, but it’s good to know that if it does occur, FHA borrowers (or anyone looking to purchase a home or rent one) do have recourse | more...

July 1, 2014

HUD Announces Settlement in Condo Housing Discrimination Case

By Joe Wallace

A press release at the FHA/HUD official site announces a settlement in a housing discrimination case featuring unlawful restrictions in a condo project. According to HUDNo.14-083, there’s an agreement between the Connecticut Fair Housing Center (CFHC) and a company called Lil-1 Associates, plus AllPoints Realty, and a realtor. “The real estate companies will pay more than $24,000 to settle allegations that they published discriminatory listings and advertisements for condominiums specifying that children were not permitted” according to the HUD press release. “The Fair Housing Act makes it unlawful to refuse to sell or rent housing on the basis of race, color, national origin, religion, sex, disability, or familial status. This includes refusing to allow families with children under 18 unless the property qualifies as housing for older persons.” Fair Housing laws | more...

May 14, 2014

FHA Loans and Powers Of Attorney: An Important Rule To Remember

By Joe Wallace

If you are considering the use of a Power of Attorney in conjunction with an FHA mortgage loan, there’s a very important rule you should know. Using a Power of Attorney isn’t common for many borrowers, but for those who do need it, understanding the rules and responsibilities of this procedure can make the entire process go more smoothly. FHA loan rules state clearly, “The initial mortgage loan application may not be executed by using a power of attorney, except in circumstances as indicated in the table below. Note: Either the initial application or the final, if one is used, must contain the signatures of all borrowers.” The table referenced in that quote from HUD 4155.1 includes circumstances for military members. “A power of attorney may be used for military | more...