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Bank of America settles LGBT discrimination claim

By: Pat Murphy, BridgeTower Media Newswires//February 5, 2013//

Bank of America settles LGBT discrimination claim

By: Pat Murphy, BridgeTower Media Newswires//February 5, 2013//

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Bank of America will pay $7,500 to settle the first action to enforce the U.S. Department of Housing and Urban Development’s new rule prohibiting home lenders from discriminating based on sexual orientation or gender identity.

“This agreement demonstrates that HUD will vigorously enforce its Equal Access Rule and pursue lenders that discriminate on the basis of sexual orientation, gender identity or marital status,” Helen Kanovsky, HUD’s general counsel, said in a news release. The agency announced the settlement last month.

According to HUD, Bank of America denied a loan to a lesbian couple in Florida because of their sexual orientation and marital status. The couple had sought an FHA-insured mortgage.

The agency said the bank’s actions violated a rule that took effect last March. HUD’s Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Rule prohibits lenders from basing eligibility determinations for mortgage loans insured by the FHA on actual or perceived sexual orientation, gender identity or marital status. The Equal Access Rule applies to all housing programs administered by the agency.

In addition to the $7,500 payment, the settlement agreement obligates Bank of America to update its fair lending training program to inform the company’s employees about the Equal Access Rule’s prohibition against discriminating on the basis of sexual orientation or gender identity.

“Members of the housing industry should take note of this settlement agreement,” said HUD’s Assistant Secretary John Trasviña in a statement. “HUD will enforce its regulations to make sure its programs are truly open to all qualified families.”

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