U.S. Department of Housing and Urban Development is charging Bank of America with discrimination against home-buyers who have disabilities, alleging Bank of America imposed unnecessary and burdensome requirements on borrowers who relied on disability income for home loan qualification.
In some cases, Bank of America even required borrowers to get physician statements before qualifying them for home or mortgage loans.
According to HUD, Bank of America is in violation of the Fair Housing Act which stipulates it is illegal to discriminate against disabled individuals in the terms and conditions of a loan. That includes imposing different application criteria. It also is illegal to ask an individual about the nature or severity of his or her disability.
HUD’s charge comes as a result of a “Secretary-initiated investigation” and two complaints filed by borrowers in Michigan and Wisconsin. They claimed that Bank of America required them to provide personal medical information and documentation as well as proof of their Social Security disability income for home mortgage qualification. The Department of Justice is now handling the matter.