Posted By: Dodge
Denying a low inome property - 02/08/16 07:52 PM
A person applied to purchase a rent house in a low income tract. The appraisal came back stating the house is in "poor condition". The bank would like to deny the loan due to poor condition of the property and the applicant, at this moment in time, does not plan on improving it. The applicant does qualify base on repayment ability and the property does have value.
Would this be consider a red flag in fair lending for denying a loan in a low income tract; even though, the reason for the denial is based on the house is in poor condition?
Would this be consider a red flag in fair lending for denying a loan in a low income tract; even though, the reason for the denial is based on the house is in poor condition?