If you are a member of the LGBTQIA+ community, you may have experienced or witnessed discrimination in various aspects of your life, such as employment, education, health care, and social services. But did you know that you may also face discrimination when it comes to buying a home?
According to a study by the Williams Institute, LGBTQIA+ people are more likely to be rejected when they apply for a mortgage, and more likely to receive a high-cost mortgage, than non-LGBTQIA+ people12. This means that LGBTQIA+ people have less access to homeownership, which is one of the main ways to build wealth and financial security in the U.S.
The study also found that LGBTQIA+ people face higher rates of housing instability, discrimination, and homelessness than non-LGBTQIA+ people1. This is especially true for transgender people, who are more likely to experience violence, harassment, and eviction from their homes1.
Why does this happen? One of the reasons is that there is no federal law that explicitly prohibits discrimination based on sexual orientation and gender identity in the mortgage industry. Neither the Fair Housing Act nor the Equal Credit Opportunity Act, which are supposed to protect consumers from unfair lending practices, cover LGBTQIA+ people34.
This means that lenders, brokers, appraisers, and other mortgage professionals can legally deny or charge more to LGBTQIA+ people based on their personal biases or prejudices. They can also refuse to recognize same-sex marriages or partnerships, or use outdated or inaccurate information about LGBTQIA+ people’s income, credit history, or employment status34.
This is unacceptable and unfair! LGBTQIA+ people deserve equal rights and protections in the mortgage industry. They deserve to have the same opportunities to achieve their dreams of homeownership and financial well-being as anyone else.
What can we do to change this situation? Here are some steps we can take:
Support legislation that would ban discrimination based on sexual orientation and gender identity in the mortgage industry. The Equality Act, which was passed by the House of Representatives in 2021 but stalled in the Senate, would amend the Fair Housing Act and the Equal Credit Opportunity Act to include LGBTQIA+ people34. Contact your senators and urge them to support this bill.
Educate yourself and others about the challenges and barriers that LGBTQIA+ people face in the mortgage industry. Share this blog post and other resources with your friends, family, and social media followers. Raise awareness and support for LGBTQIA+ people who are struggling to find or afford a home.
Seek out LGBTQIA±friendly mortgage professionals who will treat you with respect and dignity. Look for lenders, brokers, appraisers, and other professionals who have experience working with LGBTQIA+ clients, who display signs of inclusivity and allyship, and who are members of organizations such as the National Association of Gay & Lesbian Real Estate Professionals (NAGLREP) or the Human Rights Campaign (HRC).
Report any instances of discrimination or harassment that you encounter or witness in the mortgage industry. You can file a complaint with the Consumer Financial Protection Bureau (CFPB), which has stated that it will not tolerate discrimination against the LGBTQIA+ community4. You can also contact local or national LGBTQIA+ advocacy groups for legal assistance or advice.
We need to stand together and fight for justice and equality for all LGBTQIA+ people in the mortgage industry. We need to make sure that everyone has a fair chance to own a home and build wealth. We need to make the world a better place for everyone!