Skip to main content

Greenlight Forced to Pay Up Nearly $50,000 for Violating Fair Housing Act

NationalMortgageProfessional.com
Jul 01, 2014

The U.S. Department of Housing and Urban Development (HUD) has announced that mortgage lender Greenlight Financial Services will pay $48,000 to settle allegations that it violated the Fair Housing Act when it denied or delayed mortgage loans to women because they were on maternity leave. The Fair Housing Act makes it unlawful to discriminate in the terms, conditions, or privileges associated with the sale or rental of a dwelling on the basis sex, including denying a mortgage loan or mortgage insurance because a woman is pregnant or on family leave. The Conciliation Agreement resolves a complaint a married couple filed with HUD alleging that Greenlight Financial Services, now called GFS Capital Holdings, denied their application to refinance their home mortgage because the wife was on maternity leave. HUD’s investigation found that Greenlight Financial Services also allegedly denied four other applicants who were on maternity leave, or delayed their applications until after the women returned to work. “The fact that an applicant is on maternity leave alone is not a valid basis for denying or delaying a refinance loan,” said Bryan Greene, HUD’s General Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to enforce fair housing laws to ensure that no otherwise qualified applicant is illegally denied the home financing they need only because they take maternity, paternity or parental leave.” Under the terms of the agreement, Greenlight Financial Services will pay $20,000 to the couple that filed the complaint, and $7,000 to each of the other four applicants HUD identified during its investigation. The company will also provide annual fair lending training to employees and management staff should the lender resume its mortgage operation, a service it no longer provides.
Published
Jul 01, 2014
'A Long Road To Normal'

Nominated again to lead The Fed, Powell tells Senate committee to expect three rate hikes, but 'if we have to raise interest rates more over time, we will.'

Regulation and Compliance
Jan 11, 2022
CFPB: Complaint Response Worsens At Big 3 Credit Bureaus

Report claims Equifax, Experian, and TransUnion routinely failed to fully respond to consumers with errors.

Regulation and Compliance
Jan 10, 2022
The Fed Names Chairs, Deputy Chairs For 12 Reserve Banks

In recent years, the Federal Reserve System has worked to increase the overall diversity of the Reserve Bank and branch boards of directors and continues to build on those efforts.

Regulation and Compliance
Jan 06, 2022
The Fed: Rate Hike Likely Coming in June

Federal Open Market Committee's December minutes reveal discussion of first hike in federal funds rate in 2Q of 2022, as well as of ending asset purchases by March.

Regulation and Compliance
Jan 05, 2022
AARMR No Protection For Savanah Scares

Conference provides opportunity for regulators to interact, discuss common topics

Regulation and Compliance
Jan 04, 2022
McCargo Sworn In As Ginnie Mae President

Former HUD official becomes the first female to lead the Government National Mortgage Association.

Regulation and Compliance
Jan 04, 2022