Proposed Class Action Lawsuit Filed Against Space Coast Credit Union
Jose Leyva alleges the credit union denied his home loan because of his immigration status.
A Florida man sued the $9.2 billion Space Coast Credit Union in Melbourne for allegedly denying him a mortgage loan because of his immigration status.
Jose Rendon Leyva, 34, of Fort Pierce filed a proposed class action lawsuit last month in U.S. District Court in Miami that is challenging Space Coast’s alleged policy of denying financial services to applicants who are not U.S. citizens or lawful permanent residents. He claimed this alleged policy violated the federal Civil Rights Act of 1866 prohibiting discrimination based on a person’s alien status.
Although SCCU declined to comment on this new litigation, within the last year the credit union said it has extended millions in home loans to non-permanent residents.
“We can say, with certainty, that SCCU is committed to fair lending practices and serving the diverse communities in our field of membership. We stand firm in not denying products and services based on residency or immigrations status, and we are committed to operating with integrity across our entire 65-branch footprint,” SCCU Chief Strategy and Growth Officer Gary Prager said. “In the last year alone, SCCU has extended over $7 million in home loans to non-permanent residents, exemplifying our dedication to serving all individuals in our vibrant communities. We prioritize continuous learning, ensuring all lending team members engage in regular Fair Lending and Fair Housing training. We are proud of who we are and the communities we serve.”
According to the lawsuit, Leyva has been a recipient of Deferred Action for Childhood Arrivals, (DACA) since 2012 and has an employment authorization card and a Social Security number.
In December 2022, Rendon and his U.S. citizen-partner were pre-approved by Space Coast for a home loan. After finding a home in March 2023, they completed the credit union’s loan application, which included three options under citizenship. Rendon marked non-permanent resident alien. His partner checked U.S. citizen, according to the lawsuit.
On March 14, Rendon was told by Space Coast over a phone call that the couple would not get the loan because he could not prove residency. Two days later, he received a letter from Space Coast confirming he was denied a loan because he lacked proof of residency.
On March 30, just 11 days before the closing date of the home, Rendon emailed Space Coast Loan Originator Stephanie Vargas to inquire about the reason for the loan denial. Vargas replied that the mortgage was denied because U.S. citizenship or lawful permanent residency was required under Space Coast’s guidelines, according to the lawsuit.
As a result of the credit union’s loan denial, Rendon claims he suffered damages, including emotional distress, loss of a day of work to find a new lender, and having to put additional money down for their deposit to secure a home mortgage.
On behalf of Rendon, the proposed class action lawsuit was filed by attorneys with the Mexican American Legal Defense and Educational Fund (MALDEF) in Orlando.
This is the 13th lawsuit filed by MALDEF since 2017 that challenges the policies of financial institutions that discriminate against DACA recipients and other immigrants.