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88 Year Old Applying for a 30 Year Mortgage
Dan Persfull and Lucy Griffin, BOL Gurus
Guru Bios
Question: I'm a mortgage loan underwriter. I have a prospective borrower, age 88, who's applying for a 30 year mortgage. Can I counter with a 10 year mortgage? Or have I violated the ECOA?
Answer by Dan Persfull: Read the Official Staff Interpretations to Reg B's 202.6(b)(2). It discusses the use of age in credit score systems, judgmental systems and mixed systems.
Answer by Lucy Griffin: Age may be considered as a pertinent element of creditworthiness. But, it may not be considered in isolation. By itself, the fact that your borrower is 88 is not a justification for offering a shorter term. Instead, you should look at all other aspects of the loan application, such as loan to value ratio, debt ratios, and income. The 30 year mortgage may be a good loan.
First published on BankersOnline.com 3/27/06
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