PASADENA, Calif.–The Department of Housing and Urban Development said allegations against Wescom Credit Union that it denied a mortgage application because the wife was on maternity leave have been resolved.
According to HUD, the agreement requires Wescom CU to refinance the couple’s existing mortgage at a lower rate and create a $50,000 compensation fund for applicants who were similarly denied loans or withdrew mortgage applications from Wescom during 2015.
The name of the Santa Ana, Calif.-based couple was redacted from the HUD agreement.
It is a violation under the Fair Housing Act to refuse to provide a mortgage loan or mortgage insurance because a woman is pregnant or on family leave.
The resolution of the case follows a complaint the couple filed with HUD. They alleged Wescom had unfairly denied their mortgage loan and the lender requested the woman return to work and provide a current pay stub before the credit union would approve the loan application.
In response, HUD said, Wescom denied it engaged in any of the discriminatory acts.
Other terms of the agreement Wescom include:
- Ensure its lending policies regarding parental leave comply with the Fair Housing Act
- Provide fair lending training to its employees
- Send a notice to its employees regarding its parental leave lending policies