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#1682642 - 03/27/12 04:02 PM Housing Loan in another town
Tessie Offline
100 Club
Joined: Jan 2006
Posts: 155
We had a customer from another town that came here to do a house loan. They went to their bank and wanted to buy a house in another town. They were told that the Bank doesn't loan outside of their community. Just wondering if they can do this?

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Lending Compliance
#1682655 - 03/27/12 04:12 PM Re: Housing Loan in another town Tessie
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,025
Bloomington, IN
All banks have a defined lending area, although most would not have such a restricted one. However, if this is a small to mid-size community bank it would make sense they would not want to venture into areas they are not familiar with.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1683276 - 03/28/12 06:42 PM Re: Housing Loan in another town Tessie
Tessie Offline
100 Club
Joined: Jan 2006
Posts: 155
So is the are defined by CRA? Is this just a bank policy that they don't go out of their area or are they restricted by a higher power?

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#1683280 - 03/28/12 06:48 PM Re: Housing Loan in another town Tessie
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,025
Bloomington, IN
The bank's defined lending area is set by them. As an example ours is defined in our lending policy as the county our main office is located and its contiguous counties.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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