On March 19, 2021, the U.S. Department of Housing and Urban Development (HUD) announced that it approved a settlement with a national mortgage lender concerning allegations that the mortgage lender discriminated against a consumer in violation of the Fair Housing Act (FHA) when it denied the consumer’s mortgage loan application.
The consumer filed a complaint with HUD in April 2020, alleging that she applied for a mortgage loan, and, after the mortgage lender learned the loan was for a group home for persons with disabilities, it denied the loan. Under the FHA, it is unlawful to discriminate in the terms, conditions, or privileges of the sale of a dwelling, including making available mortgage loans, because of disability.
Pursuant to the conciliation agreement, the mortgage lender will pay $125,000 to the consumer in civil penalties. The agreement also requires that the mortgage lender provide fair housing training for its employees that includes an explicit description of the FHA’s protected classes.