BofA Accused of Discriminating Against Disabled Borrowers
BofA Accused of Discriminating Against Disabled Borrowers
The U.S. Department of Housing and Urban Development is alleging that Bank of America discriminated against home buyers with disabilities by imposing “unnecessary and burdensome requirements” on borrowers who relied on disability income to qualify for mortgages.
The allegations have been handed over to the U.S. Justice Department for further investigation.
The allegations stem from three borrower complaints in Michigan and Wisconsin.
"There is no basis to allege that Bank of America has engaged in a systemic practice of discriminating on the basis of disability in connection with mortgage lending," Bank of America said in a statement, adding that in all three of the cases the loans were funded.
Under the Fair Housing Act, it is illegal to discriminate against borrowers based on a disability and to even ask about the disability. In the case, HUD alleges that Bank of America asked borrowers for proof of their disabilities.
Source: “U.S. Agency: BofA Discriminated vs. Disabled Borrowers,” Reuters News (Feb. 27, 2012)
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