|HUD No. 14-084
July 1, 2014
HUD SETTLES DISCRIMINATION CLAIM AGAINST CALIFORNIA MORTGAGE LENDER ALLEGING IT DENIED LOANS TO WOMEN ON MATERNITY LEAVE
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) announced today that Irvine, CA based mortgage lender Greenlight Financial Services will pay $48,000 to settle allegations that it violated the Fair Housing Act when it denied or delayed mortgage loans to women because they were on maternity leave.
The Fair Housing Act makes it unlawful to discriminate in the terms, conditions, or privileges associated with the sale or rental of a dwelling on the basis sex, including denying a mortgage loan or mortgage insurance because a woman is pregnant or on family leave.
The Conciliation Agreement resolves a complaint a married couple filed with HUD alleging that Greenlight Financial Services, now called GFS Capital Holdings, denied their application to refinance their home mortgage because the wife was on maternity leave. HUD's investigation found that Greenlight Financial Services also allegedly denied four other applicants who were on maternity leave, or delayed their applications until after the women returned to work.
"The fact that an applicant is on maternity leave alone is not a valid basis for denying or delaying a refinance loan," said Bryan Greene, HUD's General Deputy Assistant Secretary for Fair Housing and Equal Opportunity. "HUD will continue to enforce fair housing laws to ensure that no otherwise qualified applicant is illegally denied the home financing they need only because they take maternity, paternity or parental leave."
Under the terms of the agreement, Greenlight Financial Services will pay $20,000 to the couple that filed the complaint, and $7,000 to each of the other four applicants HUD identified during its investigation. The company will also provide annual fair lending training to employees and management staff should the lender resume its mortgage operation, a service it no longer provides.
Persons who believe they have experienced discrimination may file a complaint by contacting HUD's Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 927-9275 (TTY). Housing discrimination complaints may also be filed at www.hud.gov/fairhousing or by downloading HUD's free housing discrimination mobile application, which can be accessed through Apple devices, such as the iPhone, iPad, and iPod Touch.
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 http://espanol.hud.gov. You can also follow HUD on twitter @HUDGov, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's Email List.