Bank of America will resolve discrimination allegations by paying $45,000 and changing its parental leave-related lending policies as part of an agreement with the Department of Housing and Urban Development.
HUD had alleged that B of A refused to refinance the mortgages of two couples in California and Texas because the women were on leave, which violates the Fair Housing Act.
B of A will revise its policies to allow approval of applicants on parental leave for mortgages without first requiring them to return to active work status, according to HUD. B of A also has agreed to provide fair lending training for its employees.
The California couple will receive $25,000, the Texas couple will receive $15,000 and the Texas couple’s Realtor will receive $5,000 from B of A, according to HUD.
B of A allegedly delayed the closing date on the California couple’s refinance because the wife was on maternity leave. The Texas couple alleged that B of A refused to consider the wife’s employment income and denied their application because she was on maternity leave. The Texas couple further alleged that when their Realtor told B of A that denial based on maternity leave violated the Fair Housing Act, the loan officer changed his reason for denying the loan.
The bank agreed to make payments and implement fair housing-related training to
