Discrimination in mortgage lending is prohibited by the federal Fair
Housing Act and the Maine Human Rights Act. HUD's
Office of Fair Housing and Equal Opportunity and the Maine Human Rights Commission
actively enforce those provisions of the law. The Fair Housing Act protects
people based on race, color, national origin, religion, sex, familial status,
or disability and the Maine Human Rights Act adds sexual orientation, receipt
of public assistance, and ancestry.
These laws make it unlawful to engage in the following practices:
- Refuse to make a mortgage loan
- Refuse to provide information regarding loans
- Impose different terms or conditions on a loan, such as different interest
rates, points, or fees
- Discriminate in appraising property
- Refuse to purchase a loan or set different terms or conditions for purchasing
a loan
If you have experienced any one of the above actions, you may be the victim
of discrimination. Recognizing the signs of lending discrimination is the
first step in filing a complaint. HUD and the Maine Human Rights Commission
investigate fair housing and fair lending complaints at no cost to you. If
you believe you have experienced lending discrimination, contact Pine
Tree Legal Assistance to learn more about the complaint process.
Pre-application inquiries about mortgage lending financing options represent
a critical phase in the homebuying process. If potential homebuyers cannot obtain
full and fair access to information about mortgage financing, they may give
up on their pursuit of homeownership, their housing search may be restricted,
or they may be unable to negotiate the most favorable loan terms. HUD has conducted
a number of studies to determine whether minority homebuyers receive the same
treatment and information as whites during the mortgage lending process.
Subprime loans play a significant role in today's mortgage lending market, making
homeownership possible for many families who have blemished credit histories
or who otherwise fail to qualify for prime, conventional loans.
While the subprime mortgage market serves a legitimate role, these loans tend
to cost more and sometimes have less advantageous terms than prime market loans.
Additionally, subprime lenders are largely unregulated by the federal government.
Data shows blacks are much more likely than whites to get a subprime loan, and
many of the borrowers who take out these loans could qualify for loans with
better rates and terms. As such, many have expressed fair lending concerns about
the subprime market.
Some lenders, often referred to as predatory lenders, saddle borrowers with
loans that come with outrageous terms and conditions, often through deception.
Elderly women and minorities frequently report that they have been targeted,
or preyed upon, by these lenders. The typical predatory loan is: (1) in excess
of those available to similarly situated borrowers from other lenders elsewhere
in the lending market, (2) not justified by the creditworthiness of the borrower
or the risk of loss, and (3) secured by the borrower's home. HUD is working
hard to fight against predatory lending.
HUD is committed to increasing homeownership opportunities for all Americans.
While HUD encourages home ownership for Latinos and African-Americans, whose
homeownership rates lag behind white rates, HUD also wants to protect minorities
from predatory and other unfair lending practices.
If you believe you have been the victim of illegal housing or lending
discrimination, you can take legal action. The violator may be ordered to
stop discriminating and to pay you damages.
For help contact Pine Tree Legal.
