Risk Based Pricing

Posted By: wblewis935

Risk Based Pricing - 02/26/14 08:35 PM

My bank charges a higher interest rate on mortgages that 1) are low dollar loans (mtgs under 10K) and 2) on loans with a LTV of greater than 80%.

Obviously, we send risk-based pricing notices customers who are charged a higher rate due to their credit score. Is there any disclosure/notice that is required for loans with higher rates for the reason that I explained above?
Posted By: rlcarey

Re: Risk Based Pricing - 02/26/14 08:55 PM

No.
Posted By: edAudit

Re: Risk Based Pricing - 02/27/14 01:43 PM

If this is your review make sure that Fair lending is not an issue because of the rate may negatively impact minorities.