HUD No. 14-106
Elena Gaona
(202) 708-0685
September 15, 2014


WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced today that it has reached an agreement with U.S. Bank National Association, U.S. Bank subsidiary Red Sky Risk Services, LLC (formerly known as USB Lending Support Services, LLC), and one of U.S. Bank’s loan officers, resolving allegations that they refused to refinance the mortgage of a Native American couple in Belcourt, North Dakota, because their property is located on a reservation.

The Fair Housing Act prohibits lenders from discriminating in making mortgages available or in the terms or conditions of a mortgage transaction based on race, color, national origin, religion, sex, family status, or disability.

“A person’s race and national origin have no effect on their credit worthiness,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work to give all families an equal opportunity at homeownership by ensuring that lenders meet their obligation to comply with the Fair Housing Act.”

The agreement settles a complaint that was filed by a Native American couple alleging that U.S. Bank, the bank’s appraiser Red Sky Risk Services, and one of the bank’s loan officers discriminated against the couple when they attempted to refinance their home loan.  In denying the couple’s loan application, U.S. Bank allegedly determined that the “value or type of collateral was not sufficient.”  The loan officer allegedly told the couple that, because their property is located on a Native American reservation, U.S. Bank was not able to make the loan and that Red Sky Risk Services was not able to appraise the property.

The property, located within the Turtle Mountain Indian Reservation, is held in “fee simple,” which means that the couple holds the title to the property, without restriction, in the same way that land is generally held throughout the United States.

Under the terms of the agreement, U.S. Bank agreed to pay the couple’s U.S. Bank credit card balance in the amount of $11,489.56, and to approve their application for a home mortgage refinance loan at the same interest rate and under other terms and conditions for which they originally applied. U.S. Bank and Red Sky Risk Services also agreed to amend their policies regarding home mortgage loans on land located within the boundaries of a Native American reservation to be consistent with the Fair Housing Act and to provide fair housing training for their employees.


HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at and You can also follow HUD on twitter @HUDGov, on facebook at, or sign up for news alerts on HUD’s Email List.

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