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304 North Cardinal St.
Dorchester Center, MA 02124
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From the outside, it may look like the LGBTQ+ community has made huge strides in overcoming legal and financial discrimination. Marriage equality became the law of the land in 2015, and the Biden administration has released a stream of executive orders granting various legal protections for LGBTQ+ people. Access to credit, which was less of an issue to begin with, also widened with a legal reinterpretation of the Equal Credit Opportunity Act.
And while barriers to financial inclusion are still being broken for the LGBTQ+ community, progress remains to be made. According to a 2022 survey by US Bank on the financial landscape of the LGBTQ+ community, 52% of LGBTQ+ respondents said they struggled to get a mortgage, compared with 38% of non-LGBTQ+ people. Other findings concluded that, compared with the general population, LGBTQ+ people experience greater levels of financial stress, poverty, and homelessness, and they earn less money.
Financial discrimination can show up in various ways for the LGBTQ+ community. As of now, it’s illegal to discriminate against LGBTQ+ people in marriage and in most housing and employment situations, and in some health care situations. But loopholes exist, states are rapidly passing new laws, and illegal discrimination does still happen.
It’s also important to consider the role of intersectionality in discrimination. People who are LGBTQ+ can be more than one thing at any one time, and we have to overcome so much more—and a lot of that deals with finances.
There’s some good news here. In 2021, the Consumer Financial Protection Bureau updated an interpretation of the Equal Credit Opportunity Act making it illegal for lenders to discriminate against a consumer applying for credit (such as loans or credit cards) solely due to sexual orientation or gender identity. While sexual orientation doesn’t appear on your credit report or factor into your credit score, that doesn’t guarantee you’ll be treated fairly by all lenders.
When a transgender or nonbinary person adopts a new name and pronouns, it’s psychologically important that these are affirmed in all areas of their lives. However, getting legal documents and identification updated—especially birth certificates—can be a convoluted and expensive legal process that varies by state. Many financial institutions require legal name or gender marker changes before they will update accounts, which for many LGBTQ+ people means having financial accounts or cards with the incorrect name. Fortunately, this appears to be improving.
While lenders are not allowed to discriminate, the US Bank survey found that 73% of queer respondents felt discriminated against by lenders in the mortgage process. LGBTQ+ homebuyers may experience discrimination from real estate agents or sellers. One way to reduce this risk is to use a real estate agent who’s a member of NAGLREP, an association of LGBTQ+ real estate agents, since they’re familiar with navigating the process and can recommend affirming partners.
While laws and policies vary by type of insurance, the LGBTQ+ community has historically faced discrimination with life insurance. For those with HIV, who often struggle to get approval for life insurance, there’s some progress: John Hancock offers life insurance to people who have HIV, and it looks like this may become more common.
According to the US Bank report, LGBTQ+ adults earn 90 cents on the dollar compared with the average U.S. worker. For those who are trans, and those who are people of color, the gap widens. Those with the biggest wage gap are trans women, who earn 60 cents on the dollar. Overall workplace discrimination is an issue for LGBTQ+ people, since it can impact the ability to get hired, get promoted, and access equal pay. The same report found that nearly half (46%) of LGBTQ+ adults have experienced discriminatory treatment at work, and just over a third (34.2%) have left a job because of discrimination.
It’s important to know your rights so you can determine if you’re on the receiving end of illegal discrimination. If you believe you’ve experienced it and are unable to resolve the situation yourself, try these routes for advice and/or recourse:
One thing is abundantly clear: LGBTQ+ people are resilient. The US Bank survey found that while the LGBTQ+ community faces some major financial disadvantages and inequities when compared with the general population, LGBTQ+ people also reported higher credit scores and lower debt on average. And those ages 18 and 24 have higher rates of financial independence since those in the community sometimes lack familial support.
It’s undeniable that the LGBTQ+ community has made progress in certain areas compared with decades ago, but legal protection and financial inclusion efforts at the federal and state levels still need to be addressed. Until they are, it’s important to be aware of what financial discrimination looks like and where you can go for help if you believe you are a victim.
At O1ne Mortgage, we are committed to providing equitable and inclusive mortgage services to everyone. If you need assistance with your mortgage needs, don’t hesitate to call us at 213-732-3074. Our team is here to help you navigate the process and ensure you receive the fair treatment you deserve.
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