Would there be any fair lending risk with these situations?

1. Offering a discounted origination fee for existing customers (ex: - 0.25% for existing customers)

2. Offering a discounted origination fee for higher loan amounts (ex: - 0.25% for loans greater than $250,000)

3. Offering a discounted origination fee for employees (ex: - 0.25% for existing employees)

No problem with 3. 1 and 2 would need to be supported by a business necessity analysis.

IMHO

1 - not a problem, but document what existing customer qualifies. E.g. a loan customer could be anyone with an unused Visa, to a delinquent loan or a paid as agreed $250K loan. Same as deposit account - could be $5.00 is a savings account they forgot to close our or a moderate 5 figure balance.

2 - bet you'll never offer than to many lower income applicants. Fully document that it is based on the total return and the lender will actually be getting more money for less work. Document $$ return vs.LO time, costs to produce large loan vs. smaller loans, etc.

3 - normal for most institutions.

Thanks for the responses.

2. Offering a discounted origination fee for higher loan amounts (ex: - 0.25% for loans greater than $250,000)

IMO this will have a disparate impact on your low to moderate income borrowers depending on the demographics of your lending area.

1 % origination Fee.

$250,000 loan - $2500

$251,000 - $1957.80 (.25% discount for loan amount > $250,000).

Can you in reality present a business plan that it costs you $542.20 less to process the $251,000 loan vs. the $250,000.