The couple alleged that Wescom Credit Union unfairly denied their mortgage loan and that the lender requested the woman return to work and provide a current pay stub before they would approve the loan application.
However, refusing to provide a mortgage loan or mortgage insurance because a woman is pregnant or on family leave violates the Fair Housing Act’s prohibition against sex and familial status discrimination, which includes discrimination against individuals who have or are expecting a child.
Under the terms of the agreement, Wescom Central will:
- Refinance the couple’s existing mortgage at a lower rate;
- Create a $50,000 compensation fund for applicants who were similarly denied loans or withdrew mortgage applications from Wescom during calendar year 2015;
- Ensure its lending policies regarding parental leave comply with the Fair Housing Act;
- Provide fair lending training to its employees; and
- Send a notice to its employees regarding its parental leave lending policies.
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