Monday, March 5, 2012

Feds: BofA Put Squeeze On Disabled Mortgage Applicants Attempting To Obtain Home Loans

Reuters reports:

  • The Department of Housing and Urban Development said [...] it is charging Bank of America Corp with discriminating against homebuyers with disabilities.

  • HUD alleged the second-largest U.S. bank by assets imposed "unnecessary and burdensome requirements" on borrowers who relied on disability income to qualify for their mortgages. The charge, now being handled by the Justice Department, is based on complaints by two borrowers in the state of Michigan and one in Wisconsin.


  • The Fair Housing Act makes it illegal to discriminate against borrowers based on a disability, including requiring different application or qualification guidelines. It is also illegal to ask about the severity of a disability except in limited circumstances, which HUD said were not applicable in the three cases.

For more, see BofA discriminated against disabled borrowers: agency.

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