Bank of America discriminated against disabled loan applicants

A person receiving Social Security Disability Insurance likely has a hard time earning income and probably deals with medical issues as well as stress caused by living with a disability every day. For these people to learn that a bank discriminated against them because of their SSDI status when they applied for a mortgage loan would be even more stressful and frustrating.

Bank of America faced allegations of discrimination and violating the Fair Housing Act and Equal Credit Opportunity Act. The bank allegedly required mortgage loan applicants who received SSDI to provide extensive medical information usually only accessible to a medical professional.

Since the allegations were made, Bank of America has decided to settle and will pay each applicant who they asked to provide a document from a physician detailing income received from SSDI. These people will receive anywhere from $1,000 to $5,000.

This situation points out how important it is that people applying for mortgage loans know their rights. It also points out why it is so important for SSDI recipients to be aware of who can rightfully ask them for information regarding SSDI income.

If people suspect they are being discriminated against for their SSDI status and income, seeking guidance from an attorney that works with Social Security disability claims may be beneficial. No one deserves to be treated differently when applying for a loan because they receive a disability benefit. In this case, the government brought the allegations against Bank of America. In other situations though, individuals may need to stand up for their own rights to ensure they are not discriminated against.

Source: Yahoo! Finance, "Bofa to resolve discrimination claims," Zacks Equity Research, Sept. 14, 2012

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