BofA Settles Fed Probe Over Discrimination Against Disabled

MyBankTracker

By , Staff Writer
Posted on Fri Sep 14, 2012, Last Updated on Fri Sep 14, 2012

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Bank of America has agreed to pay between $1,000 and $5,000 to disabled mortgage applicants that the bank allegedly discriminated against.

The accord resolves allegations the second-largest U.S. bank, which made about $152 billion of first mortgages in 2011, imposed extra burdens on borrowers who relied on Social Security disability insurance income to qualify on home loans, including that they provide letters from doctors to document that income.

Bank of America’s activity violated the Fair Housing Act and Equal Credit Opportunity Act, the Justice Department said.

In reaching the settlement, BofA denied the allegations and said the problem was caused by “inconsistent” regulations, according to Reuters.

 

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