Requiring Woman to Return to Work Shortly After Giving Birth Costs Firm

Land Home Financial Services, Concord, Calif. entered into a $20,000 settlement with the Department of Housing and Urban Development over alleged violations of the Fair Housing Act involving an application where the wife was on maternity leave.

John Waite, Land Home vice president, said the company did not admit any wrongdoing in entering into the settlement agreement and it is the first time in the company’s 24-year history where it had even been accused of anything like this.

According to a press release from HUD, the case involves a California couple where the wife was on maternity leave when they applied for the loan. The couple received a pre-approval letter but after the wife gave birth, Land Home allegedly required her to return to work and earn a full two-week paycheck by the time escrow closed on the loan.

HUD said the wife returned to work 19 days after giving birth because of this.

“This settlement is part of a series of HUD enforcement actions across the country to address denials of home loans to women because they are pregnant or on maternity leave,” said John Trasviña, HUD’s assistant secretary for fair housing and equal opportunity. “We will continue to pursue maternity leave discrimination until it is eliminated.”

In June, Bank of America agreed to pay up to $161,180 to settle allegations with HUD that one of the bank’s branches refused to refinance the mortgage of an Irvine, Calif., woman because she was on maternity leave.

Under the terms of the agreement, the $20,000 will be paid to the couple involved. Land Home is also to ensure its underwriting policy conforms to Fannie Mae and Freddie Mac guidelines regarding the treatment of maternity and pregnancy leave income.