March 9, 2021
A press release issued by the Department of Housing and Urban Development announces a Conciliation Agreement between JPMorgan Chase Bank and a homeowner who alleged her appraisal was undervalued due to racial discrimination in violation of the Fair Housing Act.
Discrimination in the housing industry creates a hostile environment for all house hunters and future home owners. It becomes very difficult to find affordable housing when you have potential landlords and mortgage industry professionals trying to decide whether or not your non-financial “qualifications” are good enough for them to accept your business.
The Fair Housing Act makes it illegal to discriminate against those who seek homes to rent or buy–turning away someone who needs housing for non-financial reasons. Fair Housing regulations also make it a crime to discriminate against any person in “making available such a transaction”, or to discriminate in the terms or conditions of housing transactions.
“The race of a homeowner and the racial composition of their neighborhood must not influence the valuation of a home,” according to Jeanine Worden, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity, who was quoted in the press release.
In this particular case, the Fair Housing Act violations were based on race. On this, Worden adds,. “The Fair Housing Act prohibits the consideration of race as a factor in the appraisal of a home and in the provision of other real estate related services.”
Worden says discrimination in home buying, mortgage lending, and property appraisal deprives otherwise qualified people equal opportunity to pursue homeownership.
Under the terms of the agreement announced in the HUD press release issued March 8, 2021, JPMorgan Chase Bank will pay $50,000 to the home owner who was discriminated against in violation of the Fair Housing Act.
Furthermore, JP Morgan Chase is required to “provide home lending advisors and client care specialists with mandatory training on the Reconsideration of Value process and fair lending issues related to appraisals”. That training will include training on how to manage complaints of discrimination in the appraisal process.
The HUD-announced settlement is a voluntary one–all parties volunteered to agree to the terms and conditions.
Have you experienced discrimination in the housing process? No matter if you are renting or buying, report Fair Housing Act violations to the HUD Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 877-8339 (Relay). You can also file an online complaint at hud.gov/fair housing.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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