On June 2, 2022, the U.S. Department of Housing and Urban Development (HUD) announced it reached a settlement agreement with a non-bank residential mortgage lender to resolve allegations of race-based lending discrimination in violation of the Fair Housing Act (FHA), 42 U.S.C. 3601 et seq. The settlement arose from a complaint filed with a fair housing organization, alleging that the lender treated minority testers seeking mortgage loans less favorably than white testers.
As part of the settlement, the lender will pay the fair housing organization $65,000 and contribute an additional $10,000 to a Seattle-area non-profit organization specializing in financial literacy, housing education, and counseling for persons in majority-minority census tracts in the Seattle-Tacoma-Bellevue metropolitan area. The settlement also requires the lender to host an event designed to improve homeownership rates for Black homebuyers and for the lender’s employees to complete additional fair lending training.
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