The latest settlement with the Department of Housing and Urban Development brings to at least eight the number of companies that have collectively forked over more than $2 million during the past two years to settle allegations of discriminating against women who are on maternity leave.
In February, HUD announced that it reached a conciliation agreement with PNC Mortgage to settle allegations that PNC required a loan applicant who was on paid maternity leave to return to work before it would approve the loan.
Three months earlier, a similar agreement was reached with Mortgage Guaranty Insurance Corp., which was accused of refusing to insure an attorney for a refinance transaction because she was on maternity leave.
In all, at least seven agreements have been reached since June 2011 over allegations of discriminatory lending practices involving women on maternity leave.
| Company | Date of Agreement | Amount |
| PNC Mortgage | Feb. 6, 2013 | $15,000 |
| Mortgage Guaranty Insurance Corp. | Nov. 29, 2012 | $1,015,000 |
| Land Home Financial Services | Sept. 7, 2012 | $20,000 |
| Bank of America Corp. | June 2012 | $261,180 |
| Magna Bank | April 5, 2012 | $14,085 |
| Home Loan Center Inc. | April 5, 2012 | $15,000 |
| Cornerstone Mortgage Co. | June, 1, 2011 | $765,000 |
On Tuesday, HUD announced a conciliation agreement was reached with Primary Residential Mortgage Inc.
HUD claims that the Salt Lake City-based lender denied a Baltimore, Md., woman and her husband a loan because she was pregnant and on maternity leave. The couple filed a complaint with HUD alleging that although one of PRMI’s loan originators told her she was a “good risk,” she was also told she’d have to return to work before the loan would be financed.
They reportedly found financing with another lender.
“The Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on sex, race, color, national origin, religion, familial status, or disability,” HUD stated. “Refusing to approve a mortgage loan or to provide refinancing because a woman is pregnant or on maternity leave violates the Fair Housing Act’s prohibitions against sex and familial status discrimination.”
HUD said PRMI will pay $13,000 to the woman.
In addition, the lender is obligated to adopt a parental leave policy for loan applicants that ensures compliance with the fair lending requirements of the Fair Housing Act.
PRMI must educate its loan officers, processors, underwriters and decision makers about the law and its new policy.
“The Parental Leave Policy applies to men as well as women who are on parental leave due to the birth or adoption of a child and prohibits inquiries concerning a person’s future parental leave plans,” HUD stated.
