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.
If you keep living straight from the heart, you will know when to stop and to start.