Lenders discriminate every day. They might turn down a loan because the loan to value is too high or the applicant’s credit score is too low. These forms of “discrimination” are acceptable and a normal part of your loan underwriting processes. What you need to be on the lookout for is any type of illegal discrimination. For example, Regulation B prohibits discrimination based an applicant’s race, sex, age, marital status, etc. That said, you still need to be careful and ensure that one of the legal ways you can discriminate doesn’t somehow tie back to protected class. The credit score is a perfect example.
Jerod explains more in the video.
2025/01/10
