“An institution’s clear articulation of underwriting policies regarding income derived from public assistance programs; training of underwriters, mortgage loan originators, and others involved in mortgage loan origination; and careful monitoring for compliance with such underwriting policies can all help the institution manage fair lending risk…

…in this area and comply with the requirements of ECOA and Regulation B.”, Excerpt the Consumer Financial Protection Bureau’s June 2015 “Supervisory Highlights”

“The U.S. government mandates that mortgage lenders provide Americans on public assistance with mortgages so they can buy a home? Is this really responsible mortgage lending, especially for the borrower?”, Mike Perry, former Chairman and CEO, IndyMac Bank

Related excerpt from July 2015 mortgage industry newsletter:

“The CFPB has released its June 2015 Supervisory Highlights report identifying the illegal practices revealed during the bureau’s examinations in the first quarter of the year. The bureau found that some institutions denied or discouraged mortgage applications from consumers because they relied on public assistance income in order to repay the loan.”

Posted on July 21, 2015, in Postings. Bookmark the permalink. Leave a comment.

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