Source: https://www.justice.gov/crt/case-document/complaint-united-states-v-evolve-bank-trust-wd-tenn-0
Timestamp: 2019-04-18 22:44:24+00:00

Document:
and 15 U.S.C. § 1691(h).
the Defendant is in the Western District of Tennessee.
Defendant Evolve Bank & Trust ("Evolve") is a bank headquartered at 6070 Poplar Avenue, Memphis, Tennessee 38119. Evolve is wholly owned by Evolve Bancorp Inc. Evolve is engaged in the financing of residential housing.
Social Security Disability Insurance ("SSDI") is a monthly benefit for people who have worked in the past and paid Social Security taxes. SSDI benefits may be paid to people who are unable to work for a year or more because of their disability.
Social Security benefits, including SSDI, are "public assistance benefits" for purposes of Equal Credit Opportunity Act and its implementing regulation, Regulation B, 12 C.F.R. § 202.1, et seq.
All recipients of SSDI have been determined to have a disability within the meaning of 42 U.S.C. § 423(d)(1) by the Social Security Administration.
Before March 2013, Evolve did not provide its employees that are involved in lending with written policies related to documentation of disability income.
Evolve’s written policy states that it utilizes industry standard Automated Underwriting Systems, including those provided by Fannie Mae.
The Fannie Mae 2010 Selling Guide and 2011 Selling Guide state that "[t]he lender must document the likelihood of continued receipt of income for at least three years," but also says that SSDI benefits do not have defined expiration dates and therefore the lender may conclude that the income is likely to continue, and the lender is not expected to require additional documentation from the borrower.
Nothing in any of the Automated Underwriting Systems directs the lender to require a letter from a doctor or information about an individual’s disability to document disability income.
From at least January 1, 2008, until March 29, 2013, it was the policy and practice of Evolve to require some borrowers with a disability to document the continuation of SSDI income or other disability income by providing a letter from a doctor or other information about the borrower’s disability. Most if not all of these applicants have a disability as defined by the Fair Housing Act, 42 U.S.C. § 3602(h).
Evolve did not require borrowers with wage or salary income to document the continuation of income.
In some cases, if a borrower with a disability refused to provide a letter from a doctor or other information about the borrower’s disability, or was unable to provide a letter from a doctor or other information about the borrower’s disability, Evolve denied the loan application.
The requirement that borrowers with a disability provide a letter from a doctor or other information about the borrower’s disability to show that income will continue is an intrusive and burdensome requirement that Evolve imposed on borrowers with a disability and did not impose on other borrowers.
As a result of the practice of requiring a letter from a doctor or other information about the borrower’s disability, mortgage applicants with a disability sustained monetary damages.
17. From at least January 1, 2008, until March 29, 2013, Evolve did not properly train its underwriters, loan officers, and other employees regarding appropriate documentation for SSDI income and other disability income.
C.F.R. § 100.1, et seq., and Regulation B of the Board of Governors of the Federal Reserve, 12 C.F.R. § 202.1, et seq. The Fair Housing Act prohibits financial institutions and others from, inter alia, discriminating on the basis of disability in their home-mortgage lending practices. The Equal Credit Opportunity Act prohibits financial institutions and others from, inter alia, discriminating on the basis of receipt of public assistance in their home-mortgage lending practices.
19. As described herein, Evolve’s practice of requiring mortgage applicants who received SSDI income and other disability income to provide a letter from a doctor or other information about the borrower’s disability constitutes discrimination on the bases of disability and receipt of public assistance. Evolve’s practice was intended to deny and discourage, or had the effect of denying or discouraging, equal opportunity to persons who have disabilities and are receiving SSDI or other disability income, to obtain lending services.
violation of the Equal Credit Opportunity Act, Regulation B, 12 C.F.R. 202.4, 202.5, and 202.6.
c. A denial of rights granted by the Fair Housing Act to a group of persons that raises an issue of general public importance, in violation of 42 U.S.C. § 3614(a).
23. Persons who have been victims of Evolve’s discriminatory policies and practices are aggrieved persons as defined in 42 U.S.C. § 3602(i) and as described in 15 U.S.C. § 1691(e)(i), and have suffered damages as a result of Evolve’s conduct in violation of both the Fair Housing and the Equal Credit Opportunity Acts, as described herein.
Awards any additional relief as may be appropriate pursuant to 42 U.S.C. § 3612(g)(3).

References: § 1691
 § 202
 § 423
 § 3602
 § 100
 § 202
 § 3614
 § 3602
 § 1691
 § 3612