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#2233052 - 03/16/20 07:52 PM Medical Information
Sunpokey Offline
Junior Member
Joined: Nov 2015
Posts: 28
Can an lender/underwriter as for a medical diagnosis from a doctor and medical bills for mortgage loan approval. How is this not a HIPPA Violation?

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#2233055 - 03/16/20 08:24 PM Re: Medical Information Sunpokey
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 79,279
Galveston, TX
1022.30(d) Financial information exception for obtaining and using medical information. (1) In general. A creditor may obtain and use medical information pertaining to a consumer in connection with any determination of the consumer's eligibility, or continued eligibility, for credit so long as:

(i) The information is the type of information routinely used in making credit eligibility determinations, such as information relating to debts, expenses, income, benefits, assets, collateral, or the purpose of the loan, including the use of proceeds;

(ii) The creditor uses the medical information in a manner and to an extent that is no less favorable than it would use comparable information that is not medical information in a credit transaction; and

(iii) The creditor does not take the consumer's physical, mental, or behavioral health, condition or history, type of treatment, or prognosis into account as part of any such determination.
The opinions expressed here should not be construed to be those of my employer:

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#2233286 - 03/19/20 01:39 PM Re: Medical Information Sunpokey
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
OP: You can use medical debts and income just like you would any other debts or income. What you can't do is consider that it's medical. If an applicant has medical bills, prudent underwriting should consider these debts just like any other debt.

HIPPA has to do with the release of medical info. It doesn't prohibit verification of debts (or income).
David Dickinson

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