Skip Nav
Family Life
4 Signs You're Burnt Out as a Mom
Study Shows Having a Baby After 35 Years Old Can Do Incredible Things For Your Brain
Personal Essay
Why Didn't Anybody Tell Me: Shakes During Delivery

Banks Deny New Moms Mortgages

Do Banks Discriminate Against Pregnant Women?

Did someone invent a time machine and transport us to the 1840s? No. So why are some banks in the US still discriminating against women? Several settlements have been brought up against banks, including PNC Mortgage, MGIC, and Bank of America, claiming the companies delay or deny loans for pregnant women. Both the Justice Department and the Department of Housing and Urban Development have been brought in to handle the cases, and they have awarded more than $510,000 in compensation funds to the victims.

In the most recent settlement, a Utah couple was denied a loan at Mountain America Credit Union and told to reapply "only when the wife returned to work and received a paycheck." But the banks believe their actions are justified, even though they violate the Fair Housing Act, which prohibits unequal treatment based on gender or familial status. The Los Angeles Times explained it this way:

"When a borrower or co-borrower is on maternity leave or expected to be on leave, mortgage companies assume that the household income may decline for an extended period, or the woman may not return to the same employment and salary, thereby increasing the risk of delinquency or default."

The banks may see this as a way to save their own butts, but at the end of the day, it is an outdated practice based on equally outdated assumptions. Mainly, that a woman will end her career when a baby comes along.

"It's ridiculous," Kristin Rowe-Finkbeiner, executive director of the advocacy group MomsRising, told the paper. "Three-quarters of moms are working, many of them at more than one job, because they know the income they earn is essential."

Perhaps it's time these banks take note and return to the modern age.

Image Source: Shutterstock
Around The Web
Join The Conversation
Postpartum Body Expectations
Tips For Being Pregnant During the Holidays
Gift Guide For Pregnant Women
Pretty Girl Names
Popular Spanish Baby Names For Boys
The Modern Mumma Crying Baby Pregnancy Announcement
Unusual Maternity Products

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

From Our Partners
Latest Moms
All the Latest From Ryan Reynolds