The Business Letter Subprime Lending And Much More

The Business Letter Subprime Lending And Much More

Institutions must also review their rates structures to make sure that they don’t discriminate against individuals on a prohibited basis, or based on the precise location of the home in breach for the Equal Credit chance Act (ECOA), the Fair Housing Act (FHA), or Massachusetts anti-discrimination and anti-redlining statutes, including G.L. C. 151B and c. 183, s. 64. The training of asking overages (recharging a greater rate of interest, origination cost, or amount of points on that loan for several borrowers than is charged when it comes to exact same loan item to many other borrowers in identical period of time) is allowed unless the training violates the ECOA or FHA. The lender would be in violation of ECOA and FHA unless the lender could show a legitimate nondiscriminatory business reason for the disparate treatment for example if members of a protected class under ECOA and FHA (including race, gender, age, etc. ) are charged an overage more often than other borrowers. Continue reading “The Business Letter Subprime Lending And Much More”