“The Slow Path to Financial Equality for LGBTQ+ Individuals”

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In this Article:

• A Slow Path to Equality for the LGBTQ+ Community
• Recognizing Financial Discrimination
• How to Address Financial Discrimination

A Slow Path to Equality for the LGBTQ+ Community

From the outside, it may seem like the LGBTQ+ community has made significant progress in overcoming legal and financial discrimination. Marriage equality became the law in 2015, and the Biden administration has issued several executive orders granting various legal protections for LGBTQ+ individuals. Access to credit has also improved with a legal reinterpretation of the Equal Credit Opportunity Act.

However, barriers to financial inclusion still exist. According to a 2022 survey by US Bank, 52% of LGBTQ+ respondents struggled to get a mortgage, compared to 38% of non-LGBTQ+ individuals. Additionally, LGBTQ+ people experience higher levels of financial stress, poverty, and homelessness, and they earn less money than the general population.

Recognizing Financial Discrimination

Financial discrimination can manifest in various ways for the LGBTQ+ community. While it’s illegal to discriminate against LGBTQ+ individuals in marriage, housing, and most employment situations, loopholes and new state laws can still create challenges.

Intersectionality also plays a role in discrimination. People who are both LGBTQ+ and belong to other marginalized groups, such as people of color or those with disabilities, face compounded challenges. Financial discrimination can appear in several areas, including:

Access to Funding

In 2021, the Consumer Financial Protection Bureau updated the interpretation of the Equal Credit Opportunity Act, making it illegal for lenders to discriminate based on sexual orientation or gender identity. However, this doesn’t guarantee fair treatment by all lenders.

Account Information

Updating legal documents and identification can be a complex and expensive process for transgender or nonbinary individuals. Many financial institutions require legal name or gender marker changes before updating accounts, which can be a barrier for many LGBTQ+ people.

Homebuying Discrimination

While lenders are not allowed to discriminate, 73% of queer respondents in the US Bank survey felt discriminated against during the mortgage process. Using a real estate agent who is a member of NAGLREP can help reduce this risk.

Insurance Denial

The LGBTQ+ community has historically faced discrimination with life insurance. However, there is progress, such as John Hancock offering life insurance to people with HIV.

Wage Discrimination

LGBTQ+ adults earn 90 cents on the dollar compared to the average U.S. worker. The wage gap widens for trans individuals and people of color. Workplace discrimination impacts hiring, promotions, and equal pay.

How to Address Financial Discrimination

Knowing your rights is crucial to identifying and addressing illegal discrimination. If you believe you’ve experienced discrimination, consider these options:

• For housing discrimination, file a complaint with the Department of Housing and Urban Development.
• For employment discrimination, file a complaint with the Equal Employment Opportunity Commission.
• Seek advice from organizations like the ACLU, Lambda Legal, or the National Center for Lesbian Rights.
• For transgender-specific issues, contact the Transgender Law Center’s Helpdesk or the National Center for Transgender Equality.
• Look for LGBTQ-focused lawyers or free/low-cost legal services in your area.

The Bottom Line

The LGBTQ+ community has shown remarkable resilience despite facing financial disadvantages and inequities. While progress has been made, legal protection and financial inclusion efforts still need to be addressed at federal and state levels. Being aware of financial discrimination and knowing where to seek help is essential.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to assist you with the best possible service.

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