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Charges Against Bank of America

Reprinted from PN May 2012

Alleged discrimination in lending requirements brings charges.

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The Department of Justice is investigating Bank of America for alleged discriminatory lending requirements for borrowers with disabilities.

The U.S. Department of Housing and Urban Development (HUD) alleges Bank of America imposed unnecessary and burdensome requirements on borrowers who relied on disability income to qualify for their home loans. HUD also claims the bank required some borrowers with disabilities to provide physician statements to qualify for home mortgage loans.

The Fair Housing Act makes it illegal to discriminate in the terms and conditions of a loan to an individual based on a disability, including imposing different application or qualification criteria, and makes it illegal to inquire about the nature or severity of a disability except in limited circumstances not applicable here.

HUD’s charge is based on a “Secretary-initiated investigation,” and the investigation of complaints filed by two individual borrowers in Michigan and one in Wisconsin.

All three claim Bank of America required them to provide personal medical information and documentation regarding their disability and proof of continuance of their Social Security payment in order to qualify for a home mortgage loan. The charge is also being issued as part of the work being conducted by the Federal Financial Fraud Enforcement Task Force’s nondiscrimination working group.

For more information, visit hud.gov.

 

To read more about this, order the May 2012 PN, Click Here.
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Charges Against Bank of America

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