twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.



5/3 Charged With Discrimination

Violation of Fair Housing Act alleged

Aug. 22, 2013

By Mortgage Daily staff

Subsidiaries of Fifth Third Bancorp were charged along with a mortgage broker with discrimination because they required loan applicants to verify the duration of disability income.

The case involves a Michigan couple who applied with the broker to refinance their Federal Housing Administration-insured home loan.

The couple relied on Social Security Disability Insurance. When they were asked to provide physician statements to establish continuance of SSDI income, they refused.

So, according to an announcement from the Department of Housing and Urban Development, their loan application was turned down.

The couple then filed a complaint with HUD alleging that their application was unfairly denied.

HUD agreed and filed administrative charges against Fifth Third Bank, Fifth Third Mortgage and the broker, Cranbook Mortgage Corp.

HUD claims that the three companies violated the Fair Housing Act because they imposed different application or qualification criteria by requiring unnecessary medical documentation.

HUD said that at the time of the application, Fifth Third's underwriting policy explicitly specified that a physician's statement would be appropriate to establish the continuance of the SSDI income.

HUD explained that it is ok to verify an applicant’s income amount and source. But it's not ok to place higher qualification standards on applicants who receive disability income.

"Persons with disabilities should not have to meet higher mortgage qualification standards because they rely on disability insurance payments as a source of income," HUD Acting Assistant Secretary for Fair Housing and Equal Opportunity Bryan Greene said in the announcement. "Banks and mortgage companies may verify income and have eligibility standards, but they may not single out homebuyers with disabilities or deny financing when they are otherwise qualified."

A U.S. administrative law judge will hear the charge unless Fifth Third or the broker chooses to have the case hear in federal court.

If the administrative judge determines that discrimination has occurred, damages can be awarded to the complainants. The judge can additionally choose to order injunctive relief and other equitable relief to deter further discrimination, order payment of attorney fees and impose fines in order to vindicate the public interest.

If the case is heard in federal court, the judge can impose punitive damages.

Fifth Third profile

next story

back to current headlines


Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Mortgage Compliance News | Mortgage Compliance Newsletter | Mortgage Regulations
News about complying with mortgage laws, rules and regulations.


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders