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#330049 - 03/07/05 06:53 PM Fair lending
Anonymous
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This might be a dumb question but are fair housing and fair lending the same thing?

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Lending Compliance
#330050 - 03/07/05 07:06 PM Re: Fair lending
DeeQ Offline
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Turnpike Exit 10
FHA is one component under Fair Lending. Also consider HMDA & ECOA.
Here is a link to an nice little handbook from OTS: Fair Lending
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#330051 - 03/08/05 03:38 AM Re: Fair lending
RVFlyboy Offline
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Soaring over Georgia
A little further clarification. The Fair Housing Act governs discrimination in all aspects of providing housing. This includes lending for housing, but also prohibits illegal discrimination in things like renting houses, selling houses, etc.

The Equal Credit Opportunity Act addresses illegal discrimination in all types of lending, not just housing related lending.

So that's really the distinction.
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#330052 - 03/08/05 03:53 AM Re: Fair lending
Anonymous
Unregistered

I was reviewing a loan file the other day and it concerned me but not sure if I might be overthinking it. Applicant applies for home improvement loan to purchase new roof for dwelling. Turns out the dwelling the applicant lives in is a rental home. Applicant is a black female. Her application is declined due to credit issues. She talks to her landlord who agrees to sign with her on the loan. He is a white male. His application is approved and they both signed the note. Something about this makes me feel like there should be something wrong with a tenant having to borrow money to fix a roof on a property that doesn't belong to them and the landlord basically saying that if she wanted it fixed she'd have to pay for it. Does the bank have any obligation regarding Fair Housing in instances likes this? Again I may be overthinking, but would appreciate some thoughts.

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#330053 - 03/08/05 01:39 PM Re: Fair lending
TB 12 Offline
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Joined: Feb 2005
Posts: 6,559
Foxboro
How could the tenant apply for a home improvement loan for a property she doesnt own?
As for the landlord requiring the tenant to pay for the roof, that is certainly odd. Owning a rental property myself, i cant imagine asking one of my tenants to pay for the roof. As a tenant, unless I somehow damaged the roof causing the need to repair, I would tell my landlord to take a hike if they wanted me to pay for it.
In my opinion, I wouldnt think you have any obligation in this situation, nor would i think you would want that responsibility to police it.
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#330054 - 03/10/05 07:03 PM Re: Fair lending
Jan94 Offline
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Joined: Mar 2001
Posts: 828
USA
No we wouldn't want to go there unless there was some reason we needed to. I talked with the lender about this loan and his reply was "I don't know why they wanted to it this way, I guess the landlord didn't care that the roof was leaking." It just seems wrong but I just wanted to be sure it wouldn't have any implications to the bank. Thank you for your thoughts.

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