Department of Justice reaches Settlement with Bank of America over alleged discrimination against loan applicants receiving Social Security disability benefits

The Department of Justice (DOJ) and Bank of America N.A. have announced a settlement to resolve allegations that Bank of America violated the Fair Housing Act and the Equal Credit Opportunity Act for discriminating against home loan applicants who receive Social Security Disability Insurance (SSDI). The bank had asked applicants to provide details of their medical conditions and required a letter from their doctor documenting their SSDI income. Under the settlement, Bank of America has agreed to revise its policies on documenting disability income, hold employee trainings, and pay monies to the loan applicants who were affected by the alleged misconduct. The bank will hire a third party administrator to search approximately 25,000 loan applications involving SSDI income to identify any other victims.