HUD Alleges Disability Discrimination in Refi Attempt

The Department of Housing and Urban Development is charging a lender and mortgage broker with allegedly discriminating against a couple with disabilities who were attempting to refinance their home mortgage.

HUD’s charge alleges that Cincinnati-based Fifth Third Bank/Fifth Third Mortgage Co. and Clinton Township, Mich.-based loan broker Cranbrook Mortgage Corp. required “unnecessary” medical documentation in order to qualify the couple for a Federal Housing Administration loan.

According to HUD, the couple declined to provide the documents and did not get the loan.

“While lenders may verify an applicant’s income amount and source, they may not place higher qualification standards on applicants who receive disability income,” HUD said in a press release.

A Fifth Third spokeswoman said as a matter of policy the company does not comment on litigation. A person who answered the phone at the mortgage brokerage said the owners were in meetings and could not be immediately reached for comment.