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Financial Services Law Insights and Observations

HUD approves settlement resolving Fair Housing Act violations

Federal Issues HUD Fair Lending Fair Housing Act

Federal Issues

On July 23, HUD released a Conciliation Agreement with a real estate group and a mortgage company and its agents (collectively, the “respondents”) who allegedly discriminated against African-American home seekers. The complaint, brought by the Fair Housing Council of Riverside County (FHCRC), claims the respondents violated the Fair Housing Act during a series of FHCRC fair housing tests whereby African-American “testers” were falsely informed that there were no available homes and were subject to tougher pre-qualification requirements than white testers. While the respondents deny having engaged in any discriminatory behavior, they have agreed to pay $10,000 in relief and provide fair housing training to their agents.