The U.S. Department of Housing and Urban Development (HUD) has announced a Conciliation Agreement with Rocket Mortgage, LLC. This resolution comes in response to allegations that Rocket Mortgage denied a mortgage loan application on the basis of race because the home in question was located within the Tribal boundaries of a federally recognized reservation.
The agreement originates from a complaint filed by a couple who were applying for a mortgage to purchase a single-family home within the Flathead Indian Reservation in St. Ignatius, Montana. Rocket Mortgage denied their loan application, which led the complainants to claim they were forced to accept a loan from another lender at a higher interest rate and less favorable terms.
Demetria L. McCain, HUD’s Principal Deputy Secretary for Fair Housing and Equal Opportunity, stated, “No one seeking to purchase a home should be subjected to unlawful discrimination when applying for a home mortgage.” She added that this agreement is indicative of HUD's commitment to ensuring fair lending for homeowners and home purchasers living on Tribal lands.
Under the agreement, Rocket Mortgage will compensate the complainants with $65,000 and provide fair lending training to its employees. The company is also required to adhere to fair lending requirements for applicants seeking residential mortgage credit located within Native American reservations' boundaries.
Additionally, Rocket Mortgage will invest at least $30,000 in programs aimed at improving housing conditions, consumer financial literacy and education, outreach, and homeownership education or counseling for Native Americans. The company has also agreed to conduct outreach through its website and social media platforms detailing its broad range of financing options available to eligible applicants whose loans are secured by property located within Native American reservations.
Individuals who believe they have experienced discrimination can file complaints by contacting HUD's Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 877-8339 (Relay). Complaints about housing discrimination can also be filed at hud.gov/fairhousing.
