Legal News

Bank of America Settling Probe over Disabled Borrowers
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Bank of America Corp has agreed to settle DOJ accusations that it violated the Fair Housing Act and Equal Credit Opportunity Act by discriminating against mortgage applicants on the basis of disabilities. The settlement would bring to an end the allegations against Bank of America for imposing extra burdens on borrowers who relied on Social Security disability insurance income to qualify for home loans. Such extra conditions imposed by Bank of America upon borrowers with disabilities included providing letters from doctors to document their disability insurance income.

Though details are yet to be made public, according to industry sources eligible mortgage loan applicants would receive between $100 and $5000 individually. The bank has also agreed to hire an external expert to review 25,000 loan applications for identifying other possible victims and for adequate training of underwriters and loan officers.

Thomas Perez, assistant attorney general in the civil rights unit of the DOJ said, “Loan applicants with disabilities should not be subjected to invasive requests for medical information from a doctor when they are applying for credit.”

  
What
Where


In a statement, the Bank of America mentioned, “The government’s position has been inconsistent regarding whether a doctor’s note should be requested … HUD determined this policy is in compliance for its loans, yet suggests it somehow violates the Fair Housing Act for non-HUD loans. Same statute, same alleged conduct, different result. We’re being accused of wrongdoing by the government for following a policy that the government approved.”

The Justice Department said that the borrowers who filed the original three complaints with HUD will receive a total of $125,000 in compensation.

The case is U.S. v. Bank of America NA, U.S. District Court, Western District of North Carolina, No. 12-00605.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Commercial Litigation Attorney with 4+ years of experience

USA-IL-Chicago

Chicago office of our client seeks commercial litigation attorney with 4+ years of experience. The c...

Apply Now

RELEVANT JOBS

Managing Director, Litigation Finance Investments

USA-FL-Tampa

Title                ...

Apply now

Contract Associate

USA-CA-Sausalito

Seeking lawyer with at least 2 yrs experience in complex real estate transactional matters, with wil...

Apply now

Paralegal

USA-CO-Greeley

Growing full-service law firm based in Fort Collins and Greeley is seeking a full time Paralegal. Th...

Apply now

Associate

USA-NY-Syracuse

Our Syracuse, NY office seeks an Associate with 3-5 years experience defending general liabilit...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top