LGBT individuals who seek credit transactions may soon be able to do so without fear of discrimination based on their sexual orientation or gender identity.
Last week the U.S. Department of Housing and Urban Development (HUD) proposed new regulations to prohibit lenders from using a borrower's sexual orientation or gender identity to determine their eligibility for HUD's core housing programs, including Federal Housing Administration-insured mortgage financing.
Rep. Steve Israel, D-N.Y., has announced his support for the proposed rule, and plans to re-introduce a bill he introduced last Congress to act on the issue and other issues in gaining access to credit. Israel's Freedom from Discrimination in Credit Act closes the gaps in the current law to prohibit discrimination in all credit transactions on the basis of sexual orientation and gender identity.
"I applaud the Department of Housing and Urban Development for taking action on an important human rights issue. The last thing anyone should have to worry about when applying for a home loan is [his or her] sexual orientation or gender identity getting in the way. I've introduced legislation to stop this type of discrimination for all credit transactions. I fully support HUD's proposed rule and look forward to seeing it finalized and enforced," Israel said.
The NGLCC was one the first groups Israel consulted with in the last Congress about legislation, and was one of the first to endorse it.
"This legislation is a necessary step in the right direction for true equal housing opportunities for all Americans," said Justin Nelson, NGLCC co-founder and president. "The NGLCC is in full support of Representative Israel's proposed bill and will work with him and Congress to get it passed."
Current law, under the Equal Credit Opportunity Act, prohibits lenders from discriminating in any credit transaction based on an individual's race, color, religion, national origin, sex marital status, age or whether he or she receives public assistance.
Under Israel's proposed legislation, anyone who participates in the decision to grant credit or sets terms of credit would have to comply with the prohibition on discrimination. Because of this, a wide variety of lending is covered under the proposal, including student loans, mortgages, small business loans, personal loans and credit card transactions.
For more information on HUD's proposed rule, click here.
