Magazine article Mortgage Banking

HUD, PNC Bank Settle Maternity Discrimination Claim Involving VA Loan

Magazine article Mortgage Banking

HUD, PNC Bank Settle Maternity Discrimination Claim Involving VA Loan

Article excerpt

On Feb. 6, the Department of Housing and Urban Development (HUD) announced it had reached an agreement with PNC Mortgage in Trumbull, Connecticut, that will settle allegations that the lender violated the Fair Housing Act. The case centered around allegations that the lender required a home loan applicant out on paid maternity leave to return to work before the lender would approve a home loan.

HUD's complaint alleged that PNC required the woman, a Navy veteran, to return to work before it would approve her Department of Veterans Affairs (VA) home loan. This caused the couple to delay closing on their home by one additional month. As a result, according to HUD, the seller of the home allegedly required the couple to pay an additional $3,000 for the delay.

Under the terms of the agreement, PNC will pay $15,000 to the couple and review applications for VA-guaranteed home mortgages filed in the last two years in Maine, Vermont, Connecticut, New Hampshire, Massachusetts, Rhode Island, Pennsylvania and New York. The reviews are intended to identify qualified loan seekers whose applications were denied because they were pregnant or on maternity leave. …

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