HUD and Rocket Mortgage settle fair lending complaint

The Department of Housing and Urban Development yesterday announced it has entered into a Conciliation Agreement with Rocket Mortgage, LLC, resolving allegations that Rocket Mortgage denied a mortgage loan application based on race because the home being purchased was located within the Tribal boundaries of a federally recognized reservation.

The agreement stems from a complaint filed by a couple applying for a mortgage to purchase a single-family home within the boundaries of the Flathead Indian Reservation in St. Ignatius, Montana. Rocket Mortgage denied the loan application. As a result, complainants allege they were forced to pay a higher interest rate and accept a loan from another lender on less-favorable terms. The agreement resolves the complaint with Rocket Mortgage. It secures $65,000 compensation for complainants, requires Rocket Mortgage to provide fair lending training to its employees, and requires Rocket Mortgage to abide by fair lending requirements for applicants seeking residential mortgage credit located within the boundaries of a Native American reservation. Additionally, Rocket Mortgage will invest at least $30,000 to provide financial support for programs that improve housing conditions, consumer financial literacy and education, outreach and homeownership education or counseling for Native Americans. Rocket Mortgage also agreed to conduct outreach through its website and social media platforms describing the company’s broad range of financing options available to eligible applicants whose loans are secured by property located within the boundaries of Native American reservations.