HUD settles with bank over lending discrimination

The U.S. Department of Housing and Urban Development (HUD) entered into a settlement agreement with Charles Schwab Bank in a housing discrimination case. The bank had refused to allow a woman with a disability whose son was acting with her power of attorney to apply for a housing loan. The bank’s position was that it did not accept powers of attorney for incapacitated borrowers. The Fair Housing Act prohibits such policies because they have a discriminatory effect against people with disabilities. Schwab agreed to pay $30,000 to settle the case and to train its employees about the Fair Housing Act. To read HUD’s press release about the case, go to http://portal.hud.gov/hudportal/HUDsrc=/press/press_releases_media_advisories/2011/HUDNo.11-031

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