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#2209350 - 03/23/19 10:41 AM Physican Loan Program
terpsfan Offline
Diamond Poster
Joined: Feb 2007
Posts: 2,058
I have always had fair lending concerns with doctor loan programs and disparate impact but I continue to get pushback from lenders pointing out that others are doing them. How can banks continue to justify these types of loans to regulators?


https://www.google.com/amp/s/www.cnbc.co...ng-doctors.html

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Fair Lending
#2209351 - 03/23/19 02:10 PM Re: Physican Loan Program terpsfan
Rocky P Offline
Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
I knew of one bank in the mid '70's that gave each newly licensed doctor an unsecured $50K line of credit. Among losses, the program was cancelled within 2 years.

IMHO - What makes physicians so special? Attorneys, CPA's, nurses, pharmacists, financial planners all have advanced degrees with high earnings potential. Plumbers recently joined the $100K per year class too. Why are those groups not part of the exclusive club?

Aside from that, it's been discussed many times that with the changes in medical insurance (which affects doctors heavily) the huge student loans, that doctors have a higher rate of delinquency. Costs for setting up an office are very high, student loans astronomical, and after so many years of austerity, the loan can be a godsend that the bank might have problems collecting, and be a safety and soundness issue.

Back to Fair Lending - find a way to open it up to other professions, or document why it is so exclusive.
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