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Bank accused of racial discrimination in mortgage lending

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Mortgage Professional America | 26 Apr 2016, 06:30 AM Agree 0
A bank will have to pony up $1 million to settle allegations that it discriminated against minority mortgage applicants
  • GS | | 26 Apr 2016, 11:17 AM Agree 0
    Cannot touch this with a 10ft pole. But it can happen on it's own accord.
  • Jcollins | | 26 Apr 2016, 12:05 PM Agree 0
    As long as they have proof that it was discrimination than the deserve worse. But, if it just looks like it than it is a witch hunt.
  • asw | | 26 Apr 2016, 12:59 PM Agree 0
    I would like to know the facts of the complaint, and if they had merit. Unfortunately, it is cheaper to settle than to go to court, so we will never know.
  • Brian B. | | 26 Apr 2016, 11:47 PM Agree 0
    They only care about the outcome - here is a thought - maybe the minorities had worse credit and that is why they got fewer mortgages - probably had to do with their credit- not their race. But the gov't boot will still come down on the lender's throat.
  • AJB | | 07 May 2016, 04:31 PM Agree 0
    We are, for more than 20 years, in the mortgage industry. We have handled hundreds of FHA, VA and Conventional mortgage applications. We have never been advocates of the never ending government programs that are designed to put UNQUALIFIED people into homes because they become instant foreclosures. This is the real reason for the mortgage industry blow up. Did you ever hear of the Nehemiah mortgage where unqualified people are given government "tax payer" money for a down payment because the mortgage applicants have never saved any money and do not have money of their own. Stupid? You bet, but this only one of the many government programs dreamed up by the morons in Washington. The government is more responsible for the death of the industry than banks are!

    The people in position of power and who run the pseudo government lending institutions are morons.

    Quite often individuals or couples with poor or awful credit and or job history will not reach mortgage approval. They often believe that because they filled out a mortgage application and they live in the United States that they are eligible and should be approved for the mortgage no matter their credit or financial status. People feel that they deserve to own a home regardless of their financial merits. Not everybody can or will ever own a home. Those that work hard will and those that don't won't. Simple as that! Many people have the "government" owes us left wing illusion or the "endowed" mentality and feeling that is perpetuated by left wing colleges and one of the worst generation of people the United States has ever been plagued with, the Millennials. Who raised these freeloaders?

    When some of these people are denied approval they will feel discriminated against and if they are a minority they might even fill out a complaint and guess what? The left wing will get behind them and investigate the lender and blame the lender for discriminating against these totally unqualified mortgage applicants. The government will make an issue, a federal case, against the lender who made a good business judgement. How about that? The system is NUTS!

    The answers are so simple, but the government gets in the way. The government has also gummed up the mortgage process as well as the real estate industry. It doesn't take a genius to remedy the entire industry. Unfortunately not even mid level type thinkers are making the rules and regulations. They are a group of left wing morons!

  • SBHarkness | | 09 May 2016, 03:41 PM Agree 0
    I would like to know how a bank can be charged with discrimination when they used computer-based underwriting systems to approve or deny a mortgage? That was the very reason that the industry no longer uses "common sense" underwriting done by a human. This was replaced with an algorithm that looks at factors on a mortgage application (race not being one of them) but things such as FICO score, past payment history, time on the job, and a likelihood of continued employment just to name a few. These programs are known as DU for Direct Underwriting and LP for Loan Prospector. It is IMPOSSIBLE for a computer to approve white applicants than minority applicants when they both have the exact same mortgage characteristics. Either somebody is altering the computer program which is very unlikely or someone higher up in management is turning down minority applicants which I HOPE is not happening. If we have to start lowering credit standards again so minority mortgages can be approved....we are headed for the beginnings of the same FIASCO that almost broke the back of the American economy in 2008. I think this needs to be looked at very closely. It is too bad it is cheaper to settle than go to trial. We will never know the real truth and I for one feel we all deserve to know.
  • | | 10 May 2016, 12:08 PM Agree 0
    Fidelity Bank always wanted the cream of the crop mortgages. they are in the minority community seeking their funds in deposits but wont lend money in these areas. This has always been a problem with Fidelity Bank
  • dlh | | 16 Jun 2016, 10:23 AM Agree 0
    Applications never were made, applicants discouraged, denied without an application, mortgage officers NOT trained! I worked there for years, and resigned because I didn't discriminate and they wanted me to. I was told they are a private bank and they didn't have to approve anyone from account opening to mortgages if we had a bad feeling... hope they learned - looks like they will have to!
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