     shawn2 (Shawn2) | Tuesday, January 23, 2001 - 02:35 pm 
Saw on the screen at a bank while I
was applying for a mortgage...a page of questions
which I don't get asked which the person
taking the ap filled out. Like sex, race, etc...
she said it was for govt reporting. Just found it curious....figured it could be so the govt insures they aren't descriminating, or theoretically it could be used to descriminate.
Anyone know why they collect that info? |
| John Shimmer (Jshimmer) | Wednesday, January 24, 2001 - 01:35 pm
Technically, it's your choice. It's reported back to the Government so that they can monitor the lender's compliance with equal credit opportunity, fair housing and home mortgage disclosure laws.
But, again, it's your choice. Read the bottom of the last page of your Universal Residential mortgage application. It's voluntary information. |
| Christine Baker (Admin) | Wednesday, January 24, 2001 - 03:55 pm
While the APPLICANT may elect not to disclose that info, **I**, as the mortgage broker, was required to provide that information if the borrower didn't.
If this requirement changed in the last couple of years, I'd like to hear about it.
While it is true that the government wants this info to monitor lending practices, it is also true that the info provided may result in an approval OR decline based on race or nationality.
1) Some lenders DO discriminate.
2) Some lenders have "affirmative action" programs.
You can look up actual cases at the HUD site.
Especially my minority clients often asked for my recommendations, and all I could do was explain that it just depends on which lender is going to get the loan and what their current policy is.
I left it up to my clients, and of course didn't object if they had a race change.
For marginal loans, I tend to think that on average asian and caucasian are the best answers for race in the San Francisco or other areas with lots of chinese people. Anywhere else I'd be caucasian. |
| frank hardy (Esajh) | Wednesday, January 24, 2001 - 04:26 pm
Christine you just took away my thunder:-)
I would like to add to this thread with these facts. While it is illegal for the LO to add to your application, just as Christine implied, there are in house forms for the LO to input their "observations." Just as a census worker, who comes to your door, has the legal right to input information about your race, gender etc; so too does the LO have the right to "add" additional forms to your package that is "requested" by the government.
So when you sit across the table from that LO or MB, you may find yourself in a tenuous situation at best. While most institutions shy away from institutional racism, (those profit things) individuals with narrow minds still abound and these type institutions do little to rectify the situations with their employees. If you happen to be dealing with a LO that feels "we have our quota of Blacks, Latinos, Asians, American Indians, Pan-Asians, Gays, or single females this month" you just might find yourself on the short end of the mortgage stick!
Frank |
| John Shimmer (Jshimmer) | Thursday, January 25, 2001 - 08:47 am
What the government wants the information for, and what some biased, ignorant lender ILLEGALLY does with/about this information are two completely separate issues.
I was specifically referring to the Universal Residential Mortgage Application. I suppose that they could, of their own accord and without mandate from the government, collect information on how many fingers, toes, ears and eyes you have, the make/model/year of your automobile, as well as whether or not you were wearing a shirt that said "Go State!" on it. |
| Christine Baker (Admin) | Thursday, January 25, 2001 - 09:49 am
I also was referring to the mortgage loan application. And I think if the government was sincere about collecting accurate info, they would NOT ask the borrowers to disclose their race on the application, but instead bypass the lenders.
So many loans are applied for via mail/phone/net, loan officers determine the race based on last names, accents, or whatever they need to comply.
I.e., they haven't done a lot of loans to blacks lately, here comes a good application with the borrower not wanting to disclose his race, so the loan officer decides the applicant is black. |
| John Shimmer (Jshimmer) | Friday, January 26, 2001 - 07:50 am
All of which you mentioned is illegal. Can't stop that any sooner than money laundering, drug trafficing or shoplifting.
If they did NOT ask the borrower to voluntarily disclose their race, HOW would they determine if a lender was violating Fair Lending practices? |
| Christine Baker (Admin) | Saturday, January 27, 2001 - 01:54 pm
A simple postcard would do it, directly to HUD.
Last night I had dinner with some neighbors and I got to listen to this:
"One should give a gun to every black guy in North Las Vegas and they would kill each other. When there's only one guy left, you hang him."
USA today. |
