Bank settles charges of discriminating against pregnant women

The Housing and Urban Development Department (HUD) on Thursday reached a $5 million settlement with Wells Fargo Home Mortgage to settle charges that the bank discriminated against women who were pregnant or had recently given birth.

Six families filed complaints with HUD accusing the bank of discriminating against their relatives when they applied for a loan. 

{mosads}Some of the complaints alleged that the women were forced to sacrifice their maternity leave in order to close on a loan or lenders made discriminatory statements against women who were pregnant or had given birth. 

Under the Fair Housing Act, it’s illegal to discriminate in real estate transactions based on national origin, race, color, religion, sex, familial status or disability, HUD says.

“The settlement is significant for the six families who had the courage to file complaints, and for countless other families who will no longer fear losing out on a home simply because they are expecting a baby,” HUD Secretary Julián Castro said in a statement.

The bank will be required to distribute $165,000 among the six families who filed complaints. The bank must also create a fund with at least $3.5 million to repay other applicants who experienced similar discrimination. Through the fund, the bank could pay as many as 175 people $20,000 each. If more people file claims, the fund can be replenished.

Since 2010, HUD says 190 maternity leave discrimination complaints have been filed with the department, which produced 40 settlements that totaled nearly $1.5 million.

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