Travelers Indemnity Settles Housing Discrimination Lawsuit

Phil Hall

Feb 23, 2018

The Royal Bank of Scotland Group (RBS) has agreed to a $4.9 billion settlement with the Department of Justice related to the company’s issuance and underwriting of residential mortgage-backed securities (RMBS) between 2005 and 2007

The National Fair Housing Alliance (NFHA) has settled a lawsuit with Travelers Indemnity Co. that will now guarantee landlords in the Washington, D.C., housing market will not be denied commercial insurance coverage from Travelers because their apartments being are rented to people using Housing Choice Vouchers, also known as Section 8.

Under the terms of the settlement, Travelers will pay $450,000 to NFHA for damages, costs, and fees, and the company agreed not to ask about the source of income of residents at Washington-area properties it considers insuring. Travelers will also provide new training to employees involved in the sale or underwriting of insurance for rental properties. In settling the lawsuit, Travelers is not admitting or conceding that its underwriting policies violated federal or local law.

“The actions of Travelers disproportionately harmed low-income African Americans and women-headed households who use Housing Choice Vouchers,” said Shanna Smith, NFHA President and Chief Executive Officer. “The Fair Housing Act prohibits discrimination based on race and familial status. Additionally, the D.C. Human Rights Act has prohibited discrimination based on source of income since 1977. This settlement sends a message to all insurance companies that they cannot discriminate against voucher holders or landlords who rent to them."

Link copied

Published

Feb 23, 2018

Regulation and Compliance

Fitch Places Fannie, Freddie On Negative Ratings Watch

Ties credit rating to outcome of U.S. debt limit negotiations.

As negotiations over raising the federal debt ceiling drag on, the lack of a deal is starting to have side effects. Late Thursday, Fitch Ratings announced it had placed Fannie Mae’s and Freddie Mac’s debt ratings on Ratings Watch Negative (RWN). The announcement followed Fi...

Operations

JPMorgan Chase To Cut 1,000 Jobs At First Republic Bank

Acquired the bank earlier this month after it was seized by federal regulators.

Less than a month after acquiring failed First Republic Bank, JPMorgan Chase & Co. plans to reduce the bank’s staff by 15%, or about 1,000 workers. According to published reports, the nation’s largest bank by assets on Thursday offered full-time or temporary roles to ne...