Underwriting is requesting on mortgages that if an application has 2 applicants and one applicant has no income they should not be primary and changing applicant positions. To me this could be discrimination since each applicant has equal responsibility. I am unable to find any FNMA guidelines stating income bearing applicants should be primary? Does this not set us up for discrimination?

How do you have a primary applicant on a joint application? The order listed on the application or other documentation is meaningless.

Randy - It should be meaningless, but I believe some secondary market automated underwriting systems actually approve more loans when the primary applicant is strong (at least they used to). I just think it is a bad idea to switch the primary applicant to work the AUS as a fair lending examiner would have a field day with a policy like this.

I agree. If my wife is listed first and I'm listed second, DON'T switch our names. You're opening a fair lending hornet's nest!

I agree to and have seen them indicate "gender bias", and looking more closely at male/female than gender/ethnicity.