Rocket MortgageThe third largest U.S. mortgage lender has partnered with U.S. Department of Housing and Urban Development The parties announced Monday that they will resolve allegations of discriminatory housing practices with the Department of Housing and Urban Development (HUD).
A complaint filed by a couple alleges that the company and a mortgage banker were turned down over competition for a single-family home located within the boundaries of the Flathead Indian Reservation in St. Ignatius, Montana. Apply for a mortgage loan. As a result, the borrower obtains a mortgage from another lender on less favorable terms and at a higher interest rate.
The Rockets and bankers settled the matter but did not admit any fault or liability related to the claims.
“No one who wants to buy a home should be subject to unlawful discrimination when applying for a home mortgage,” said Demetria L. McCain, principal deputy secretary for fair housing and equal opportunity at the Department of Housing and Urban Development. Demetria L. McCain said in a statement.
Under the settlement, Rocket will pay the couple $65,000 and invest at least $30,000 in projects related to Native American home ownership.
Rocket will also provide fair lending training to its employees and improve promotion of financing options available for properties on Native American reservations.
rocket companyThe lender’s parent company had 14,700 employees in the United States and Canada as of December 31, 2023. Smart investing. Rocket originated $20.2 billion in mortgage loans in the first quarter of 2024.
The agreement with HUD will govern the company’s conduct for three years from the effective date, or until it satisfactorily complies with all terms, whichever is later. This is evident in its recent moves. In mid-April, it announced a new rule aimed at encouraging lenders to participate in the department’s Section 184 Indian Home Loan Guarantee Scheme. The new rules take effect on June 18.
