HUD Fines Greenlight Financial for Alleged Mortgage Discrimination

HUD Fines Greenlight Financial $48,000 for Alleged Mortgage Discrimination

Greenlight Financial Services has agreed to pay the Department of Housing and Urban Development (HUD) $48,000 to settle allegations that it violated the Fair Housing Act. 

At the heart of the allegations are claims that Greenlight denied or delayed mortgage loans to women because they were on maternity leave, according to a release from HUD. 

“The Fair Housing Act states that it is unlawful to discriminate in the terms, conditions or privileges associated with the sale or rental of a dwelling on the basis of sex, including denying a mortgage loan or mortgage insurance because a woman is pregnant or on family leave,” HUD stated.

The allegations against Greenlight, now called GSF Capital Holdings, stems from a compliant a married couple filed with HUD, claiming the company denied their application to refinance their home mortgage because the wife was on maternity leave. 

Additionally, HUD’s investigation found that Greenlight also allegedly denied or delayed the applications of four other applicants who were also on maternity leave until after the women returned to work.

Under the terms of the Conciliation Agreement, Greenlight has agreed to pay $20,000 to the couple that filed the complaint and $7,000 to each of the other four applicants identified by HUD during its investigation.

“The fact that an applicant is on maternity leave alone is not a valid basis for denying or delaying a refinance loan,” stated Bryan Greene, HUD’s general deputy assistant secretary for Fair Housing and Opportunity. “HUD will continue to enforce fair housing laws to ensure that no otherwise qualified applicant is illegally denied the home financing they need only because they take maternity, paternity to parental leave.”

Written by Jason Oliva

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