On May 13, 2024, the HUD announced that 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.
Rocket Mortgage, LLC is a mortgage lender, headquartered in Detroit, Michigan. A complaint was filed by a couple against Rocket mortgage after their loan denial for a mortgage to purchase a single-family home within the boundaries of the Flathead Indian Reservation in St. Ignatius. The complainants alleged that they were forced to pay a higher interest rate and accept a loan from another lender on less-favorable terms.
The agreement requires Rocket Mortgage to:
Pay $65,000 compensation to complainants;
Provide fair lending training to its employees;
Abide by fair lending requirements for applicants seeking residential mortgage credit located within the boundaries of a Native American reservation;
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; and
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.
Read the HUD’s announcement here.
The agreement can be found here.