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| A same-sex couple in New York state has taken Countrywide Financial Corp. to federal court, claiming the lender discriminated against them when they wanted to add one partner to the other’s mortgage.The California-based lender declined to comment, explaining to MortgageDaily.com in an e-mail that it was just served with the 12-page complaint and is still reviewing the allegations.
The case arose when Adola DeWolf, a teacher for juveniles in the justice system, and Laura Watts, a college administrator, decided to move in together in 2005. Watts sold her house and moved into DeWolf’s home outside Rochester, N.Y. Because they wanted to share responsibility for the mortgage and to be protected in case of death, they contacted DeWolf’s mortgage company, Countrywide, to add Watts as a party responsible for the monthly payments. The couple said the Calabasas, Calif.-based lender provided verbal and written instructions outlining eight steps to be undertaken, including providing a copy of the recorded deed transferring title and requesting a signed letter explaining the relationship between the parties. DeWolf and Watts said they followed the lender’s instructions, obtaining a new recorded deed and the letter of explanation. But according to the lawsuit, the mortgage banking behemoth responded by refusing to add Watts to DeWolf’s mortgage and then threatened to foreclose on the home, claiming the lender’s agreement had been breached by changing the deed. The couple said Countrywide also said it did not recognize domestic partners as family. The couple claimed they were told to come up with $80,000 in 30 days or lose the house. Watts and DeWolf said they were forced to hurriedly refinance the home at a higher interest rate. The couple claims in DeWolf and Watts v. Countrywide that alleged acts by the company violated the Equal Credit Opportunity Act and constitute deceptive practices under New York state law as well as breach of contract and negligent misrepresentation. The ECOA forbids discrimination based on marital status. New York’s high court last year reportedly upheld the state’s exclusion of same-sex couple from marriage. The case was filed in the U. S. District Court, Southern District of New York. |
