HUD Reaches Deal with JPMorgan Chase Resolving Claims of Racial Discrimination in Reviews
The US Department of Housing and Urban Development (HUD) today announced it has approved a conciliation agreement between JPMorgan Chase Bank and a black owner, resolving the woman’s claim that the mortgage lender, based on an appraisal she believed to be inaccurate, appraised her home less than its actual value due to her race.
“A landlord’s race and the racial makeup of their neighborhood should not influence a home’s valuation,” said Jeanine Worden, HUD’s acting assistant secretary for Fair Housing and Equal Opportunities.
Worden said the Fair Housing Act prohibits considering race as a factor in valuing a home and providing other real estate-related services.
“Discrimination in buying a home, in mortgage lending and in property valuation deprives qualified people of an equal opportunity to own property as a path to family stability and financial security”, a- she explained. “HUD is committed to ensuring that all accommodation, whether for rent or for sale, is free from discrimination. ”
Under the conciliation agreement, JPMorgan Chase Bank will pay the woman $ 50,000 and provide mortgage advisors and customer care specialists with mandatory training on the value process review and fair loan issues. related to assessments, including details on how to deal with complaints of discrimination in the assessment process.
“We have researched the matter extensively and take these complaints very seriously,” a spokesperson for Chase said in a written statement. “Appraisers are independent contractors who are not employed by the bank. They are specialists in specific regions and use market-based comparisons to find value. Our internal review of the appraisal appraisal, as well as market analysis, found no substantive issues and supported the appraiser’s value.
Discriminatory practices are particularly problematic for black homebuyers, representing missed opportunities to build wealth and stability.
Several studies and surveys show that many tax assessors still regularly charge black and minority residents property tax bills that are too high for the market value of their homes.
The Fair Housing Act prohibits any discrimination in the terms, conditions or privileges of selling housing on the basis of race, color, religion, national origin, sex, disability and family status.
The law also prohibits any person or other entity whose business includes transactions related to residential real estate from discriminating against any person in making such transaction available, or in the terms or conditions of such transaction. Residential real estate transactions covered by the law include the granting of loans secured by residential real estate and the valuation of residential real estate.