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HUD Secures Settlement for Couple in Discrimination Complaint

""HUD"":http://portal.hud.gov/hudportal/HUD announced Friday that a $20,000 settlement has been reached with Land Home Financial Services (LHFS) to resolve allegations of discriminatory practices based on maternity status.

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A California couple charged that LHFS sent them a loan pre-approval letter after they applied for a mortgage. However, after the wife gave birth, they say LHFS required her to return to work and earn a full two-week paycheck by the time escrow closed on the loan. In order to meet that requirement, the wife was forced to terminate her maternity leave early, returning to work 19 days after the birth of her child.

The Fair Housing Act prohibits discrimination in the sale, rental, and refinancing of a dwelling based on race, color, sex, national origin, religion, disability, or familial status.

Under the terms of the Conciliation Agreement, LHFS will pay the couple $20,000. The company will also work to ensure that its underwriting policies conform to Fannie Mae and Freddie Mac guidelines with regard to treatment of maternity leave and pregnancy income.

""The settlement is part of a series of HUD enforcement actions across the country to address denials of home loans to women because they are pregnant or on maternity leave,"" said John Trasviña, assistant secretary for fair housing and equal opportunity for HUD. ""We will continue to pursue maternity leave discrimination until it is eliminated.""

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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