The U.S. Department of Housing and
Urban Development (HUD) on Wednesday announced an agreement with Bank
of America (BOA) to settle a discrimination claim by a lesbian
couple.
The first-of-its-kind settlement stems
from a Florida couple that was unable to close a Federal Housing
Administration (FHA) insured mortgage because they were not legally
married.
The applicant listed her partner's
mother as a co-applicant on the loan. The couple were assured by BOA
that they were likely to receive a mortgage. However, one business
day prior to closing, BOA denied the mortgage because it did not
consider the loan applicant and the co-applicant directly related
because the applicant and her partner were not married.
HUD's recently published rule, Equal
Access to Housing in HUD Programs Regardless of Sexual Orientation or
Gender Identity, prohibits lenders from basing eligibility
determinations for FHA-insured loans on actual or perceived sexual
orientation, gender identity or marital status.
“This agreement demonstrates that HUD
will vigorously enforce its Equal Access rule to pursue lenders that
discriminate on the basis of sexual orientation, gender identity or
marital status,” Helen Kanovsky, HUD's general counsel, said in a
statement.
Kanovsky also commended BOA for
“stepping up and taking immediate corrective action after HUD
notified BOA of the violation.”
Under the terms of the agreement, BOA
agrees to pay HUD $7,500 and to notify its residential mortgage loan
originators, processors and underwriters of its settlement agreement
with HUD.