|HUD No. 13-015
February 6, 2013
HUD, PNC BANK SETTLE MATERNITY DISCRIMINATION CLAIM
Bank to pay couple $15,000 and compensate other victims who were denied loans
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) announced today that it has reached an Agreement with PNC Mortgage in Trumbull, CT, settling allegations that the lender violated the Fair Housing Act by requiring a home loan applicant on paid maternity leave to return to work before the lender would approve a home loan. PNC Mortgage is a division of Virginia-based PNC Bank National Association.
The Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status, and disability. Refusing to approve a mortgage loan or provide refinancing because a woman is pregnant or on maternity leave violates the Fair Housing Act's prohibitions against sex and familial status discrimination.
"Since 2010, HUD has been investigating lenders who have allegedly violated the Fair Housing Act by requiring women to terminate their maternity leave early in order to qualify for a home loan," stated John Trasviña, HUD Assistant Secretary for Fair Housing & Equal Opportunity. "HUD will continue to enforce the law and take action against lenders whose loan policies establish different terms and conditions for women who are pregnant or on maternity leave."
HUD's complaint alleged that because PNC required the woman, a Navy veteran, to return to work before approving the Department of Veterans Affairs (VA) - guaranteed loan, the couple could not close on their new home in Newington, CT, until a month later than they had planned. As a result, the seller of the home allegedly required the couple to pay an additional $3,000 for the delay.
Under the Agreement, PNC will pay $15,000 to the couple and review applications for VA-guaranteed residential mortgage loans filed in the last two years in Maine, Vermont, Connecticut, New Hampshire, Massachusetts, Rhode Island, Pennsylvania, and New York to identify qualified loan seekers whose applications were denied because they were pregnant or on maternity leave. PNC will pay $7,500 each victim who is identified. PNC will also revise its Temporary Leave/Short-Term Disability Income policy if HUD finds that the policy is deficient, and will provide fair lending training to its residential mortgage loan originators, underwriters, and processors.
HUD's Office of Fair Housing and Equal Opportunity and its partners in the Fair Housing Assistance Program investigate almost 10,000 housing discrimination complaints each year.
Persons who believe they have experienced or witnessed unlawful housing discrimination may contact HUD at (800) 669-9777 (voice), or (800) 927-9275 (TTY). More information about fair housing rights is available at HUD's website, www.hud.gov/fairhousing.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.