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HUD Settles Discrimination Claim

GFS Capital Holdings, formerly Greenlight Financial Services, settled a claim with HUD regarding discrimination of women on maternity leave. The company agreed to pay a total of $48,000 to individuals against which it allegedly discriminated.

HUD investigated Greenlight after a family complained the company denied their refinance loan application because the wife was on maternity leave at the time.

"The fact that an applicant is on maternity leave alone is not a valid basis for denying or delaying a refinance loan," said HUD General Deputy Assistant Secretary for Fair Housing and Equal Opportunity Bryan Greene with the announcement of the settlement. Denying a loan on such basis is prohibited by the Fair Housing Act.

Additionally, when HUD investigated the couple's complaint, HUD uncovered four other instances of similar discrimination against women on maternity leave. As a result, Greenlight will pay $20,000 to the couple who filed the complaint with HUD, and the other four applicants will receive $7,000 from the company.

While Greenlight no longer offers mortgage loans, the company also agreed to provide fair lending training each year to its employees should it re-enter the mortgage lending space.

About Author: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.
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