Rocket Mortgage LLC, a division of Detroit-headquartered Rocket Companies (NYSE:RKT), has reached a settlement with the U.S. Department of Housing and Urban Development (HUD) to resolve allegations that the company denied a mortgage loan application because the property was on federally recognized tribal reservation.
The issue involved a couple applying for a mortgage to purchase a single-family home within the boundaries of the Flathead Indian Reservation in St. Ignatius, Montana. Because Rocket Mortgage denied the couple’s application, they claimed they were forced to pay a higher interest rate and accept a loan from another lender on less-favorable terms.
The settlement includes $65,000 compensation to the complainants and an additional $30,000 in financial support for programs that improve housing conditions, consumer financial literacy and education, outreach and homeownership education or counseling for Native Americans. Rocket Mortgage will also be provided to provide fair lending training to its employees, to abide by fair lending requirements for applicants seeking residential mortgage credit located within the boundaries of a Native American reservation, and to conduct outreach through its website and social media platforms describing financing options available to eligible applicants on Native American reservations.
“No one seeking to purchase a home should be subjected to unlawful discrimination when applying for a home mortgage” said Demetria L. McCain, HUD’s Principal Deputy Secretary for Fair Housing and Equal Opportunity. “This agreement demonstrates HUD’s commitment to ensuring fair lending for homeowners and home purchasers living on tribal lands.”
