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#2267179 - 03/04/22 01:17 PM Dealer Rate Buydown
ComplyGuy Offline
100 Club
Joined: May 2015
Posts: 245
Does anyone allow dealer rate buydowns with their indirect lending program? The situation would be when the dealer gives the borrower a rate lower than the institutions standard rates, but then pays the institution the difference.

If anyone does this, looking for some ideas around the potential risks. Is this a fair lending concern? Do you place limits on this practice, or have any monitoring in place?

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Fair Lending
#2267184 - 03/04/22 03:13 PM Re: Dealer Rate Buydown ComplyGuy
Rocky P Online
Power Poster
Joined: Jun 2003
Posts: 7,401
Florida
"The situation would be when the dealer gives the borrower a rate lower than the institutions standard rates, but then pays the institution the difference."

That should be stipulated in the contract between dealer and bank. FL concern? What about if it is offered to only men, or excludes Hispanics? There are proxy programs to identify gender and ethnicity.
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