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Boat Loan w/o Violating Fair Lending Laws

Can I make a boat loan (personal use) to a business client without violating any Fair Lending Laws?

Answer from Randy: You can make a boat loan to anyone that you want to. I'm not sure how making a loan secured by a specific type of collateral represents a fair lending issue?


Answer from Andy: A better Q&A is can you violate fair lending laws with this type of loan (or any other) and the answer is still yes. It is a matter of whose signatures are required for the loan and the rates and terms based on comparable transactions. If you have a woman-owned business and you require a personal signature as well as a cosigner or additional collateral, which wasn't required for a male-owned similar business, you'd potentially have issues.

First published on 2/27/12

First published on 02/27/2012

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