Articles in Category: Fair Housing Act

February 11, 2015

FHA/HUD Update “Equal Access” Rules

The FHA and HUD have issued a new mortgagee letter updating the FHA/HUD policy of equal access for all FHA/HUD programs. FHA Mortgagee Letter 2015-05, “Notice of Program Eligibility for HUD Insured Housing Programs for All People Regardless of Sexual Orientation, Gender Identity or Marital Status as Required by HUD’s Equal Access Rule” contains some very important updates since the original equal access guidelines were published back in 2012. According to the Mortgagee Letter, “On February 3, 2012, HUD published a final rule entitled Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity (77 FR5662) (“Equal Access Rule or “rule”). The final rule ensures that housing across HUD programs are open to all eligible individuals regardless of actual or perceived sexual orientation, gender identity, or | more...

November 28, 2014

Fair Housing Act Violations: A Case in Puerto Rico

By Joe Wallace

A press release on the FHA/HUD official site reveals that a Puerto Rico condo association discriminated against a person with disabilities in violation of federal fair housing laws. According to HUDNo.14-142, “The U.S. Department of Housing and Urban Development (HUD) announced today it has ordered Castillo Condominium Association, in San Juan, Puerto Rico, to pay $20,000 in damages plus a $16,000 civil penalty after finding that the association violated the Fair Housing Act when it refused to allow a resident with disabilities to keep his emotional support animal.” Support animals and/or service animals have a different status than what might be considered an “ordinary pet”. According to the FHA/HUD official site, “The Fair Housing Act makes it unlawful to refuse to make reasonable accommodations in policies or practices when such | more...

November 6, 2014

HUD Resolves American Bank Housing Discrimination Case

By Joe Wallace

The FHA and HUD have announced a resolution in a housing discrimination case brought by HUD against a Maryland-based lender. According to HUDNo.14-139, “The U.S. Department of Housing and Urban Development (HUD) announced today that it has entered into an Initial Decision and Consent Order with American Bank, resolving HUD’s charge that the Rockville, Maryland-based lender discriminated against applicants with disabilities when it allegedly required applicants to provide documentation regarding their disabilities and attempted to obtain information about the nature and extent of those disabilities.” Federal Fair Housing laws state that it is a violation of federal law to discriminate against borrowers, “in the terms and conditions of a loan to an individual based on a disability, including imposing different application or qualification criteria. The Fair Housing Act also makes it | more...

October 16, 2014

HUD Awards Millions To Help Fight Housing Discrimination

By Joe Wallace

In recent weeks we’ve seen a variety of press releases from the FHA/HUD discussing settlements in cases where HUD investigated alleged violations of the Fair Housing Act and other anti-discrimination housing laws. Now, the Department of Housing and Urban Development has issued a press release announcing millions of dollars in federal funds being awarded to agencies trying to raise awareness of Fair Housing laws. According to HUDNo. 14-123, “The U.S. Department of Housing and Urban Development (HUD) today awarded $38.3 million to more than 100 fair housing organizations and other non-profit agencies in 43 states and the District of Columbia to address housing discrimination.” The HUD press release says that competitive grants in this area are funded via the HUD Fair Housing Initiatives Program, “to help enforce the Fair Housing | more...

October 10, 2014

FHA Home Loans and Maternity Discrimination: The Wells Fargo Case

By Joe Wallace

The FHA and HUD have taken a special interest in ending home loan discrimination against those who are pregnant or on maternity leave. Since 2010 HUD has received nearly 200 maternity leave discrimination complaints; the Fair Housing Act makes it a crime to “discriminate in real estate related transactions, including the provision of home mortgage loans, on the bases of race, color, national origin, religion, sex, disability, or familial status” according to the FHA official site. A recent HUD press release announces a major settlement between the Department of Housing and Urban Development and Wells Fargo Home Mortgage. According to HUDNo.14-124, HUD “has reached a $5 million settlement with Wells Fargo Home Mortgage, the nation’s largest provider of home mortgage loans, resolving allegations that the lender discriminated against women who | more...

October 9, 2014

HUD Settles “Redlining” Discrimination Complaint

By Joe Wallace

Have you ever wanted to apply for an FHA home loan only to experience what may be illegal discrimination forbidden by the Fair Housing Act? In some cases the discrimination may not even reach the borrowers themselves, as evidenced by a recent settlement announced by the HUD official site. According to a October 2014 press release issued on the FHA/HUD official site, “The Department of Housing and Urban Development (HUD) announced today that it has negotiated a Conciliation Agreement with Illinois-based Midland States Bancorp, resolving allegations that the bank avoided doing business in predominantly African American and Hispanic neighborhoods in St. Louis, Missouri and northern Illinois.” Federal Fair Housing Act laws state that it is illegal to, “deny or discriminate in the terms and conditions of a mortgage or loan | more...

September 22, 2014

Fair Housing Act Violations: A Reader Question

By Joe Wallace

A reader asks, “I am trying to sell my manufactured home and the land it sets on to a couple that are not married from California, the lienholder refuses to do this because they are not married, isn’t this a violation of Federal Law?” The Fair Housing Act makes it illegal to discriminate against a house hunter–a buyer or renter–based on family status. That includes being married, not married, a single parent, etc. The Department of Housing and Urban Development official site (which is also home to the FHA official site) states the following basic information on the Fair Housing Act: “The Fair Housing Act covers most housing. In some circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use | more...

September 19, 2014

HUD Announces Settlement In North Dakota Housing Discrimination Case

By Joe Wallace

We post news stories about settlements in housing discrimination cases for several reasons, but one of the most important is to remind borrowers that FHA loan applications aren’t immune from problems such as these. The first line of defense against continued violations of the Fair Housing Act usually comes in the form of complaints filed against companies that violate federal law. With that in mind, we bring news of a recent settlement between HUD and a North Dakota company over housing discrimination complaints. According to press release HUDNo.14-106, ” The U.S. Department of Housing and Urban Development (HUD) announced today that it has reached an agreement with U.S. Bank National Association, U.S. Bank subsidiary Red Sky Risk Services, LLC (formerly known as USB Lending Support Services, LLC), and one of | more...

August 15, 2014

HUD Announces Settlement In New Jersey Lending Discrimination Case

By Joe Wallace

The FHA and HUD have announced a settlement in a case involving a New Jersey mortgage corporation that allegedly discriminated against home loan applicants based on disability. According to the press release HUDNo.14-098, ” The U.S. Department of Housing and Urban Development (HUD) announced today that Freedom Mortgage Corporation, a national residential mortgage lender based in Mt. Laurel, New Jersey, will pay $104,000 to settle allegations that it discriminated against loan applicants with disabilities by requiring them to provide medical or other documentation regarding their disability.” The Fair Housing act makes it illegal to discrminated against those who seek housing (buying OR renting) based on such criteria. “This includes requiring persons with disabilities to provide medical or other documentation not required of mortgage applicants who are not disabled.” according to | more...

July 24, 2014

FHA, HUD Announce Settlement In Housing Discrimination Case

By Joe Wallace

The FHA and HUD have announced a settlement in a New Hampshire housing discrimination case. According to HUDNo.14-089, a tenant filed two housing discrimination complaints against TKB Properties and the New England Family Housing Management Organization. Those complaints were settled and the settlement announced in the HUD/FHA press release. “The U.S. Department of Housing and Urban Development (HUD) announced today agreements with the owners and managers of two Berlin, New Hampshire properties, settling allegations that they engaged in housing discrimination when they refused to rent to a woman who was a victim of domestic violence. The Fair Housing Act makes it unlawful to discriminate in the sale or rental of housing because of race, color, national origin, religion, sex, disability, or familial status.” “No woman should be denied housing based on | more...