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.

Jun 26, 2013 9:32AM

Equal  rights has nothing to do with gay marriage. The constitution of  marriage is based on the premise of heterosexuality and surprisely enough, to these equally bigoted gay people, is the sexual union from which all of them ae derived.

Jun 9, 2013 3:49AM

here is a great example of only the gays can say, do, or say thing... if u say something about the gays then u get stupid people, who start the name calling really impressive (not really) . betty u r not the brightest lady (if u even deserve that  title)

Jun 9, 2013 3:32AM
Betty u r the slut.. the spineless coward..just because u didn't hear what u wanted to hear...awww poorpathetic , , loser

Jun 8, 2013 9:42PM
We should take all of this gay agenda crap, and shove it right back down the throats of the sick bastards!!!!!!!!!
Jun 8, 2013 9:35PM
padebw how will you react if one of your children is gay?  If both of your children marry is it wrong for both of them to want to have their pictures in the paper, is one child better than the other or has more rights than the other?
Jun 8, 2013 9:23PM
I can't believe all the idiots posting comments.  Cruel, ignorant, bigots.  It's no wonder we need laws in place protecting the rights of ALL citizens.  People have to contend with the likes of you!
Jun 8, 2013 9:16PM
This gay topic is getting old & played out.. Can I log on to MSN and not see something about being gay. I get the message! Gay's are here to stay . MSN, you are making it difficult for gays, by reporting something about them everyday. even gay's are tired of it. Please give it a break. You are causing people to despise gay's, which could lead to violence by those who hate gay's already. MSN! Whose side are you really on.
Jun 8, 2013 8:54PM

Here it comes the race card when they do not get their way!

Jun 8, 2013 6:37PM
I am a nice person and I believe in equality for everyone. However, I am also a mother trying to raise kids in a not so nice world.  Every time I turn the TV on there is something about gays in the news, on TV programs, etc.  And the newspaper every day!  It is going to get to a point that I am going to have to explain what sex is to my children at a very young age because they are going to hear about gay stuff by someone else than me, probably in school.  That goes against my own morals and convictions.  My kids can't watch TV or read the newspaper because of this.  What's next, are they going to put gay marriage pictures in the marriage section of the newspaper for all children to see?  Am I the only mother concerned about this?  We have enough worries about raising our children right.  Hey do what you want in your own home, but keep it out of the news.  Ridiculous.  If I couldn't get a loan or a frickin wedding cake I wanted I would go somewhere else.  Make your own cake!  My poor kids might read this garbage?  What is this world coming to?
Jun 8, 2013 6:08PM

You know people, contrary to popular belief, for every person out there who accepts gay couples, there are just as many people who do not accept it. And for all these people who pull out the "fill in the blank" card (race, gender, sexual orientation, age), without any real proof, just hurt themselves and everyone else in the long run. Discrimination does unfortunately still happen, and you can only hope that people will learn to be more understanding. The article does not give specifics on why the ladies were denied a loan. Could have been a bad risk, you know credit history, no collateral, etc. etc. You want everyone on the planet to accept your way of life, but you out right refuse to accept anyone else's way of life. Get over yourselves. You are not the center of the universe.


Jun 8, 2013 5:54PM

No wonder why the banks are in trouble - with the government forcing them to accept foolish rules & laws such as these.


Marriage is between a Man and a Woman. Period.


Bank of America was correct in this matter.

Jun 8, 2013 5:50PM
Good Ole B of A...time to get the hell rid of it!
Jun 8, 2013 5:43PM
You people really need to read the article and not just the title before you make stupid comments.
Jun 8, 2013 4:36PM
This BofA decision was pure crap! Good for the judge who tried the case. $7500 is not enough. It should have been at least $10,000 if not more.
Jun 8, 2013 4:35PM
Of course the only reason they were denied was because they were gay. Wrong! They just didnt get their way and are raising the gay card. I fail to believe decisions on making money, which banks do, was influenced based solely on their orientation.
Jun 8, 2013 4:31PM
Kudos to B of A. Some morals may still exist.
Jun 8, 2013 3:35PM
I hope the overly officious as-----s learned that equality is not by their rules or subject to their myopic view of the world. More fines and punishment to follow I hope!!!!!!!!!!!!!!!!!
Jun 8, 2013 3:08PM
I hope China HACKS into Bank of America's COMPUTERS and TAKES every LAST DOLLAR. The CROOKS....... Hell I hope China HACKS into the COMPUTERS of the DOUBLE CROOKS at Discover Card,Chase Bank,Suntrust, and  BB@T...... Then I HOPE the FATCAT Bankers ALL Commit Suicide.....
They should have known better since they aren't a private business. Mind you these days gays'll attack private businesses too to steal their rights.
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