The $3.8 billion Mountain America Federal Credit Union will pay a couple $10,000to settle allegations the credit union violated the Fair HousingAct when it denied them a mortgage, according to an announcementThursday from the U.S. Department of Housing and UrbanDevelopment.

“The birth of a child, a joyous event for a family, should notbecome the basis for denying that family a home mortgage,” saidBryan Greene, HUD's general deputy assistant secretary for fairhousing and equal opportunity. “HUD will continue to enforce fairhousing laws to ensure that no family is denied the opportunity tobuy a home because of maternity, paternity or pregnancy leave.”

The agreement indicated HUD did not complete its investigationinto the complaint but both parties had agreed to settle it. TheWest Jordan, Utah-based credit union had maintained its decisionnot to make the loan based on the wife's maternity leave statusflowed from their mortgage insurer's requirements.

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