Mortgage Discrimination
Our in house finance consultant, DeAnna Trask, was passing an article around the office about mortgage denial for women on maternity leave. Click here for the article. I found the article very interesting and I didn’t think it had been an issue in the past but, this year there have been 16 incidents with at least three institutions. Some cases the lenders either denied the loan all together or stopped working on it. On October 9th, HUD settled with Wells Fargo for $5 million, which is the largest settlement of its kind.
“Wells Fargo settled with HUD to resolve allegations that it discriminated against pregnant women, women on maternity leave, or women who recently gave birth by making loans unavailable based on sex and familial status; or by forcing women applicants to sacrifice their maternity leave and return to work prior to closing on their loans; and by making discriminatory statements to and against women who were pregnant or who had recently given birth.” Click here to read the whole article.
One of the biggest problems regarding this type of discrimination is the lack of education. The changes to Dodd Frank, the SAFE act and other federal law changes have greatly impacted and regulated our industry. Tyna-Minet Anderson, vice president at Mortgage Educators and Compliance, said that underwriters and mortgage insures do not take the same training which many lead to a knowledge gap and fair lending. HUD reported 30 cases of discrimination in 2010, 40 in 2011, 50 in 2012, and 40 in 2013.
I asked DeAnna to give us some insight on what we can do as dealerships to protect our deals and customers. Here is what she had to say:
As a dealer, if you have a customer that is pregnant, you need to be aware of how this has worked in the real world. If you’re doing an end loan, you could run into special underwriting guidelines that only pertain to women on maternity leave. If the woman goes out on maternity leave before the deal is closed, an underwriter could do the following:
- Refuse to count her income because she is on leave, effectively declining the loan.
- Refuse to acknowledge that being on family medical leave does not mean that you’re unemployed.
- Decline the loan altogether and make them resubmit when she goes back to work.
- Or, put the loan on hold until she is back to work and has 30 days of paystubs.
All of these actions have been standard practice in the past. However, all of these actions violate the Fair Housing Act of 1968.
2012 MHI Legislative Conference
There are many new legislators in Congress thanks to last year’s election. That is why we are asking you to share how important our industry is to “the health of the economy and housing Americans” in 2012. Everything that happens in D.C. can and most likely will shape our industry throughout 2012.
By attending MHI’s February 2012 Legislative Conference you presence and voice will be heard. This meeting will be critical in reaching out to the members of the 112th Congress on issues of that are of great importance to our industry which include the following:
- Dodd-Frank Financial Reform
- EISA Standards
- SAFE Act
- The future role of government’s support of affordable housing programs
- Vital industry tax credits
- Increased oversight of the federal manufactured housing program
Get your voice heard and make sure the correct people are listening to you about how important our industry is in this economy. Sponsorship opportunities are available here. Check out the following registration deadlines which expires on Jan. 26th, 2012:
- Discounted room rate @ Sheraton Crystal City Express (reserve it here)
- Early-bird registration fee (reserve it here)
The New York Housing Association’s 61st Annual Convention
Get ready for The New York Housing Association’s 61st Annual Convention from October 12th & 13th, 2011 at the Turning Stone Resort. Senator Catherine Young (R,C,I) 57th Senate District will be on hand to address the attendees. “Her committee on Housing, Construction and Community Development works to develop legislation to help revitalize communities; assist families in buying and preserving their homes; and create safe , affordable rental housing”.
The convention will allow for the 61st annual meeting to elect the 2012 Officers, approve the 2012 Association Budget and examine possible changes to the Association Bylaws. There will also be a TradeExpo through-out the convention that will have vendors and suppliers displaying their goods and services.
Some of the following will be apart of the breakout sessions:
- National Issues Perspective, including the SAFE Act & Dodd-Frank Update (by Thayer Long)
- How to Dominate Your Market Area (by Tony Kovach)
- Worker’s Compensation – All You Need to Know (by Heather Dougherty)
- Well Water Compliance – New Requirements (by Jamie Herman)
- Association and Recent Changes to the NYS Building & Energy Codes (by Timothy King)
Volume Buyers 