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#633683 - 11/02/06 08:27 PM Amish Lending and Reg B
Last Mango Offline
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Joined: Mar 2001
Posts: 293
Too Far From the Beach
I know of 2 banks that have been required by the FDIC to have a documented Reg B special lending program for lending to the Amish. Has anyone else been required to do this?
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Lending Compliance
#633684 - 11/03/06 01:06 PM Re: Amish Lending and Reg B
pjs Offline
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pjs
Joined: Aug 2004
Posts: 10,321
oHiO
We haven't as yet and we are def. deep in Amish country. We CIP them thru known customer, Amish reference book, etc.
Most have the Amish Aid Insurance that is acceptable on our in house loans. We can't sell their loan through secondary market because of the insurance they have. There has been a couple in flood zones and it was mandatory that they get flood insurance.

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#633685 - 11/03/06 01:54 PM Re: Amish Lending and Reg B
Last Mango Offline
Gold Star
Joined: Mar 2001
Posts: 293
Too Far From the Beach
The examiners were more concerned that banks were allowing the security to be homes without plumbing or electricity. Their reasoning was that the bank would not make a similar loan to other borrowers who may be of a protected class under Reg B. Therefore, if the banks continued lending in this manner, without the special credit program approved by the board, they would be cited for discrimination under Reg B.
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