DOJ Settlement with Financial institution of America to Resolve Claims of Incapacity Discrimination and Compensate Victims
Author: US Department of Justice Public Affairs (i): Contact: www.justice.gov
Table of contents and important points:
The complaint alleges that Bank of America has refused to grant mortgages to anyone under guardianship.
The Fair Housing Act prohibits banks from denying mortgage and other home-related loans to people because of their disability …
The bank has ended its practice of denying mortgage and home equity loans to adults with disabilities under guardianship or supervision.
The Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York recently filed a civil lawsuit proposing a settlement agreement to clarify allegations that Bank of America, NA (bank) has a pattern or practice of disability discrimination has committed in violation of the Fair Housing Act. The settlement agreement requires approval by the Federal District Court.
The department alleges in its complaint that starting in January 2010, the bank refused mortgage and home equity loans to adults with disabilities who were under legal guardianship or supervision for several years. The bank changed this policy in 2016 for mortgage loans and in 2017 for home equity loans.
“No one in this free land should be denied access to the American Dream on the grounds of disability alone. The inalienable right to pursue happiness extends to all people, including people with disabilities, and home buying is an option, like many People exercise this right, “said Assistant Attorney General Eric Dreiband of the Civil Rights Division.
“The Fair Housing Act prohibits banks from denying mortgage and other housing-related loans to people because of their disability, and this department will hold lenders accountable for engaging in such illegal behavior. Bank of America should apply non-discriminatory guidelines to decide which applicants will receive credit. “
“This settlement ensures that Bank of America will no longer discriminate against people with disabilities in the granting of mortgage and home equity loans and will reimburse victims for their losses,” said Seth D. DuCharme, acting US attorney for the Eastern District of New York. “Our office is committed to advocating for the rights of people with disabilities and, if necessary, taking action to defend these rights.”
- The bank has ended its practice of denying mortgage and home equity loans to adults with disabilities under guardianship or supervision.
- Under the terms of the settlement, the bank will be required to pay $ 4,000 per loan to eligible loan applicants affected by the bank’s previous discriminatory policies and we estimate the payments will amount to around $ 300,000.
- The settlement also stipulates that the bank will retain the new, non-discriminatory underwriting guidelines for loans and train its employees in the new guidelines.
- In addition, the bank must monitor its loan processing and underwriting activities to ensure compliance with the Fair Housing Act.
The Justice Department’s enforcement of fair lending laws is carried out by the Housing and Civil Enforcement Division of the Civil Rights Division.
- For more information on the section’s fair enforcement of lending, please visit https://www.justice.gov/fairhousing
- Discrimination on the basis of credit can be reported to the Civil Rights Department at https://civilrights.justice.gov
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Journal: Disabled World. Language: English. Author: Department of Public Affairs, US Department of Justice. Electronic publication date: 2020-07-31. Last revision: 2020-07-31. Reference Title: “Comparing the DOJ to Bank of America in Resolving Disability Discrimination Claims and Compensating Victims,” Source: Comparing the DOJ to Bank of America in Resolving Disability Discrimination Claims and Compensating Victims. Summary: The complaint alleges that Bank of America has refused to provide mortgages to anyone under guardianship. Retrieved on December 19, 2020 from https://www.disabled-world.com/disability/housing/bank-of-america.php – reference category number: DW # 471-13863.