Wescom Central CU Settles Maternity Discrimination Complaint

The U.S. Department of Housing and Urban Development announced an agreement between Wescom Central Credit Union (Pasadena, CA) and a married couple from Santa Ana, CA, resolving allegations the credit union denied the couple’s mortgage loan application because the wife was on maternity leave.

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.

Read the press release.