InfoBytes Blog
HUD Announces $35,000 Maternity Leave Fair Housing Agreement
On September 12, HUD announced a conciliation agreement with a Tennessee mortgage lender, pursuant to which the lender will pay $35,000 to resolve allegations that it violated the Fair Housing Act when it denied a mortgage loan to a couple because the lender did not consider the couple’s ability to make loan payments during the wife’s maternity leave despite the husband’s salary and the wife’s short-term disability insurance payments. Under the Fair Housing Act, it is unlawful to discriminate in the terms, conditions, or privileges associated with the sale 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. In addition to requiring a payment be made to the couple, the company must adopt a national parental leave policy and receive annual fair housing and fair lending training. HUD has brought similar cases against other mortgage lenders in recent years.