News came out yesterday in a New York Times report that there were loan denials to people because of the fact that one member of the family was expecting a baby, and now HUD is going to investigate the possible loan denials to pregnant borrowers.

Shaun Donovan, of HUD, stated to the New York Times:

“Lenders have every right to ascertain the incomes of families to determine whether they are eligible for a mortgage loan, but they have no right to use a pregnancy or a short-term disability as a cause to deny that family a mortgage they would otherwise qualify for,” Shaun Donovan, the agency’s secretary, said in a statement late Wednesday.

This was very upsetting to many who felt this was an illegal and unfair practice. The question I, as well as many, had, is whether this violated the Fair Housing Act.

I am hoping that these practices do not continue, or that they are found to be untrue allegations.