HUD Fines FirstBank Mortgage for Fair Housing Act Violation – NMP Skip to main content

HUD Fines FirstBank Mortgage for Fair Housing Act Violation

NationalMortgageProfessional.com
Sep 12, 2014

The U.S. Department of Housing & Urban Development (HUD) has announced that Jackson, Tenn.-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. 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 of sex or familial status, including denying a mortgage loan or mortgage insurance because an applicant is pregnant or on maternity leave. The Conciliation Agreement resolves a complaint filed with HUD by a married couple who alleged that after FirstBank had approved their application and scheduled its closing, FirstBank learned that the wife was on maternity leave and notified the couple within 24 hours of the scheduled closing that the loan was denied. The couple alleged that they then lost the opportunity to buy a home in Virginia. The couple allegedly also lost their current housing, requiring the wife and infant twins to move in with her parents while the husband moved to an apartment with their three-year old. According to the complaint, FirstBank did not consider the couple’s ability to make loan payments during the wife’s maternity leave, ignoring the husband’s salary and the wife’s short-term disability insurance payments. “No qualified applicant should be denied a mortgage loan solely because they take maternity, paternity or parental leave,” said Gustavo Velasquez, HUD’s assistant secretary for Fair Housing and Equal Opportunity. “HUD will continue to enforce the nation’s fair housing laws to ensure no one is illegally denied the opportunity to own a home.”
Published
Sep 12, 2014
Markets Anxious As Fed Opens 2-Day Meeting

Investors, mortgage brokers & bankers await latest policy statement on fighting inflation

Regulation and Compliance
Jan 25, 2022
Ginnie Mae Streamlines FHA Advanced Loan Modification program

Documentation changes eliminate requirements for recordation and title insurance.

Regulation and Compliance
Jan 24, 2022
'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