Bank to pay $7,500 for denying loan to lesbians

The case against Bank of America was the first of its type since the Department of Housing and Urban Development issued new anti-discrimination rules.

By Teresa at MSN Real Estate Jan 4, 2013 1:14PM

© Cultura/CorbisBank of America has agreed to pay $7,500 to settle allegations that it refused to grant a loan to a lesbian couple because of their marital status and sexual orientation.

The case is the first of its type since the Department of Housing and Urban Development issued a new rule requiring equal access to housing in HUD programs regardless of sexual orientation or gender identity. That rule says lenders cannot base decisions about loans backed by the Federal Housing Administration on sexual orientation, gender identity or marital status.


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"The HUD Equal Access Rule means just what it says: One’s sexual orientation, gender identity or marital status is not a legitimate basis on which to deny a mortgage," John Trasviña, HUD’s assistant secretary for fair housing and equal opportunity, said in a news release. "Members of the housing industry should take note of this settlement agreement. HUD will enforce its regulations to make sure its programs are truly open to all qualified families."   


The rule also applies to all other housing program administered by HUD.

It’s not unusual for unmarried couples -- or other people who are unrelated, such as business partners -- to seek a mortgage together.

In this case, two women, who were not identified in the HUD press release, were seeking to buy a home together in South Daytona Beach, Fla., using an FHA-backed mortgage. Because one did not have a job, her mother agreed to be a co-signer.


Everything went fine until one business day before the closing, HUD said, when "BOA denied the mortgage because it did not consider the loan applicant and the co-applicant directly related because the applicant and her partner were not married."

Bank of America agreed to pay HUD $7,500, update its training programs and remind its employees they are prohibited from discriminating against FHA loan applicants on the basis of sexual orientation, gender identity or marital status.


There was no immediate comment from Bank of America, but HUD praised the lender for "taking immediate corrective action after HUD notified BOA of the violation."


FHA mortgages are routinely granted to unmarried couples, though it’s important to make sure both people are legally protected. You can read more about FHA mortgages here.

Jan 5, 2013 3:19AM
Take note that BOA agreed to pay HUD $7500.00, not the two people injured by the denial.  It seems that anytime a company violates a law the government get the money and those injured get ZIP.  Doesn't seem right to me.
Jan 5, 2013 3:03AM
is it very possible that these two just want out of the lease because they can't afford it, so they are scamming everyone so they can get out of the lease,   This is why everyone pays higher for everything
Jan 5, 2013 2:11AM
Aliens only abduct and probe rednecks because they are trying to figure out why they haven't evolved at the same pace as the rest of us.
Jan 5, 2013 1:17AM

Can I marry my sister?  Or brother?  Why not?

Jan 5, 2013 12:47AM
The harassment amounts to a violation of the "peaceful enjoyment" clause that all leases contain. 

However, if the lease company has not been given the time to address the issue, the homosexuals may not have a viable claim.

Jan 4, 2013 11:51PM
Has anybody ever considered that its the people who bit** about how horrible our society is seem to be the exact people that are making our society horrible with their venom and the poisen they spew?
Jan 4, 2013 11:46PM

For all those sanctimonious people contributing to this article, this wasn't directly about a "lesbian couple" per say, it was about 2 people that applied for a mortgage who were denied because they were not married. The same thing would have resulted  if a straight unmarried couple had applied for a loan.


People talk as if they have the religious right to determine who owns a home in this country. Why don't you live the way you see fit and allow others to do the same! LET GO AND LET GOD!

Jan 4, 2013 11:44PM
MSN has a story about homosexuals EVERY single day.  It is long past pathetic. 
Jan 4, 2013 11:07PM
I wasn't aware that sexual orientation was covered in the civil rights act.  Thats wierd.  I want to marry my donkey.  Bad.  And the donkey and I would like to take out a loan.  Bad.  ACLU, help me!
Jan 4, 2013 9:11PM

 Gah! Learn to read, people!


The lesbian couple referenced in the article above (denied a home loan) are NOT the same lesbian couple as in the above video (want out of their lease due to hate crimes.)


The couple referenced in the article above are NOT the same as the couple in the state-of-Kansas-vs-sperm-donor article.


The couple referenced in the artice above did not benefit financially from this settlement. BofA is paying the fine to HUD, because HUD prohibits discriminating against FHA loan applicants based on sexual orientation, gender identity, or marital status, andthat is what BofA did, in denying the loan because the two applicants were "not related."

Jan 4, 2013 8:50PM

I feel that the worst comments on this articles are full of conservative religious idiots that need to stop crying to their god because the world isn't way they want it to be! Someone should shut them up and bring them a dictionary so we can properly define "Discrimination" to their uneducated, single minded faces. Explain that to your god.


and since I made this comment, I have to come to realize that I discriminated against you because of your belief in a fairytale. Now do you realize how painful discrimination can be?! Do you hate me because I called your god fake? Well, its the same stuff your doing to gays and lesbians. Can your puny minds see the differences between respect and discrimination? NO. You half witted automatons will never figure it out until something cataclysmic happens that makes the good people of the public notice just how crazy you are.

Jan 4, 2013 8:28PM
People need to get past their fears. This is 2013.
Jan 4, 2013 8:01PM
I suppose any heterosexual couple who are not married (boyfriend/girlfriend) could sue if the bank felt they were not stable enough to give them a mortgage. Bet that would not fly. Whenever homosexuals do not get there way they fall back on the crutch that they are gay. This is not unlike people of minority ethnicity crying racism when things do not go their way. Where does this bs stop?
Jan 4, 2013 7:47PM
i dont think the bank should have to pay them anything but i do feel bad for there land lords not giving them a break considering the hate crimes going on around them...i lived in a very religious area in a apartment complex and i felt scared and sad that these ppl thought i was a bad person and wanted to hurt me they were teaching there kids to throw rocks at my car and say awful remarks. ppl get denied at banks all the time i just understand what it like to be discriminated against and its awful.
Jan 4, 2013 7:47PM
I just don't see how you can discriminate against QUEERS did they need the money to buy  new dildos?
Jan 4, 2013 7:47PM
GOOD!  Discriination is escrimination.  Peiod.
Jan 4, 2013 7:40PM

B of A also accepts the un-verified Mexican ID's!@

How about todays Exec Order: proclaimed that "immigrants" aka The Race=666=LaRaza ills illegally knowingly in the USA can REMAIN and with their "families" aka heathen breeders via sperm donor exponetials from womb to tomb whom are not only welcomed but rewarded ALL whileUS Military US Citizens of Genertions are sent as to be disposed of on foreign soil while this gov aka TRAITORs WITHIN rward our continued PLAGUE INVADERS...dispose of us dba the USA the founders and ancestry who buillt this nation.

EVIL vs One Nation Under GOD

Jan 4, 2013 7:37PM
Nihilism generates some pretty F'ed up people, stay tuned for even more mind boggling freaks that all claim they have 'rights'.

Jan 4, 2013 7:36PM
These gays and lesbians are all loud mouth and really irritating.  Shut the F up !
Jan 4, 2013 7:36PM
Lawyer are liar or they would be defending those individuals raped, robbed, homenvaded or to who real terror is heaped not those of "politially correct perversion!"  No wonder our nation has fallen into the abyss...and sinking as we vent!
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