June 18, 2018

Pregnant Women Reimbursed Over Mortgage Denials

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Pregnant Women Reimbursed Over Mortgage Denials

The Department of Housing and Urban Development announced that two banks will reimburse women over allegations that the banks denied the women mortgages because they were pregnant or on maternity leave. 

Magna Bank has agreed to pay one woman $14,085 over allegations it allegedly required her to return to work before agreeing to approve her mortgage application. Home Loan Center also has agreed to pay a woman $15,000, stemming from claims that the bank denied her refinancing application because she was on maternity leave, HUD announced. 

HUD says it has 18 more cases from the past year regarding mortgages that were rejected because women were on maternity leave. 

“Women shouldn’t have to choose between buying or refinancing a home and exercising their right to have a family,” says John Trasviña, HUD assistant secretary for Fair Housing and Equal Opportunity. “HUD will take appropriate action anytime we determine that discrimination has occurred.”

Source: “Two Banks Settle Pregnancy Mortgage Discrimination Claims,” HousingWire (April 5, 2012)