Bank of America can pay $300,000 to settle federal allegations that it denied mortgages and residential fairness loans to folks with disabilities.
Between 2010 and 2016, the bank allegedly denied mortgages to adults with disabilities who have been underneath authorized guardianship, in violation of the Honest Housing Act, in accordance the Division of Justice. The bank allegedly denied disabled adults house fairness loans till 2017.
“No one in this free country should be denied access to the American dream merely because of a disability,” mentioned Assistant Legal professional Normal Eric Dreiband of the DOJ’s Civil Rights Division. “The unalienable right to pursue happiness extends to all people, including those with disabilities, and purchasing a home is one way many people exercise this right. The Fair Housing Act prohibits banks from denying mortgage loans and other housing-related credit to people because of their disabilities, and this department will hold accountable those lenders who engage in such illegal conduct. Today’s settlement provides compensation to victims of unlawful discrimination and requires Bank of America to apply non-discriminatory policies in deciding which applicants will receive loans.”
“This settlement ensures that Bank of America will no longer discriminate against people with disabilities when issuing mortgage and home equity loans, and compensates the victims for their losses,” mentioned Seth D. DuCharme, appearing US legal professional for the Jap District of New York. “Our office is committed to standing up for the rights of individuals with disabilities and taking action when necessary to vindicate those rights.”
Below the phrases of the settlement, BoA can pay $4,000 per loan to eligible candidates who have been affected by the coverage. The DOJ mentioned it expects the funds to complete round $300,000. The settlement additionally requires the bank to keep up non-discriminatory underwriting insurance policies and monitor loan-processing and underwriting actions to make sure compliance with the Honest Housing Act.