Freedom Mortgage Denies Loans To New Moms, Suit Claims

Law360, Los Angeles (December 17, 2012, 6:58 PM EST) -- A California home loan applicant hit Freedom Mortgage Corp. with a putative class action in federal court Friday, claiming the lender discriminates against expectant and new mothers by refusing loans to any applicant with plans to go on maternity leave, regardless of changes to net income.

Plaintiff Poonam Khanna, suing on behalf of a proposed class of women who were denied a home loan by Freedom Mortgage based on maternity leave, argues that the policy “penalizes” mothers for having children and taking maternity leave and violates...
To view the full article, register now.