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Mortgage Discrimination: Know Your Rights As A Home Buyer And Consumer
By: John R. Blakefield
Discrimination is still prevalent in the United States and really across the
world. There are still strong judgments and stereotypes that lead people's
thoughts and behaviors, whether be positive or negative. However, there are
agencies and acts that have been erected that support the rights of people.
There are many types of people that can afford housing currently, especially now
that there are many government programs and financial support that leave owning
a home an option for almost every American. Home ownership is no longer reserved
for the middle to upper class, but can be achieved among all income levels and
financial situations.
Because of these options, however, there are still some professionals in the
mortgage and financial industry that carry a sense of judgment when people apply
for loans. This is a really sad fact. The Equal Credit Opportunity Act (ECOA)
and Fair Housing Act (FHA) were developed in order to protect every person from
discrimination. They have put rules, policies and protocol in place so that
every person will be treated equally and fairly when considering financial
assistance.
The ECOA protects the rights of a person to apply for a mortgage, refinance and
make home improvements independent of all following factors: race, sex,
religion, national origin, marital status, age, or use of a public assistance
program. Also, every person can exercise his or her own right under the Consumer
Credit Protection Act.
The FHA prohibits discrimination in all aspects or real-estate related
transactions which include: selling, brokering, or appraising residential real
estate, selling or renting a dwelling, as well as making loans to buy, build,
repair or improve a residential dwelling. It also protects all these aspects
independent of race, sex, religion, national origin, marital status, age,
familial status, and handicap.
When applying for a loan, lenders must only base their decisions on the
applicant's financial environment. This may include net income, expenses, debt
and credit history. Not everyone will be able to qualify for a loan regarding
these terms, and the lender may only deny financing if the applicant does not
meet these financial requirements.
If your application is denied, the lender is required to identify why exactly it
was not accepted. If it has to do with your financial situation, then that is
acceptable. You can take actions to correct the problem set forth by the lender,
or possibly try another who may be more forgiving and willing to accept more
risk by charging a higher interest rate.
The best way to avoid being denied is to perform your due diligence on your own
financial situation. Know your income, expenses, debt and get a free copy of
your credit report so you can see your credit history and score. This way, you
can wait to apply for a loan and clean up your finances, or be prepared for
whatever decision is made. You can also use your self-analyzed financial
situation to know whether or not you qualify for a long and if you are possibly
denied, you know whether or not the lender is telling the truth.
If you need assistance in figuring out your financial environment, there are
many tools and resources available to you through banks, government educational
and financial programs, as well as on and off line. The best way to avoid
discrimination is to be informed and educated in what it is you want to
accomplish. There are also professional financial advisors that can guide you in
the right direction.
You can do your part in avoiding discrimination by being a responsible and
educated consumer. However, in the event that discrimination does take place, be
sure to report to the FHA or US Department of Housing and Urban Development.
They can assist you in taking action against the person or entity that was
discriminatory and remove another source of discrimination from society.
If you file a complaint, be sure to include your name and address, the name and
address of the person or company who is the subject of the complaint, the
address or other identification of the housing involved, a short description of
the facts that caused you to believe your rights were violated, and the dates of
the alleged violation. The FHA or HUD will respond to your claim and proceed
with action if necessary.
Let's work together by eliminating discrimination in the mortgage industry so
that every person of any walk of life can have the same opportunities. By
acknowledging discrimination and taking action, we are saying it is not
acceptable. If you just let it go, you can bet the subject of a claim will
discriminate again unless reprimanded. These acts and institutions were put into
place to protect the American people, so use them to your advantage and protect
yourself and educate those around.
About the Author:
John R Blakefield is a mortgage and real estate specialist. For more
information, articles, news, tools and valuable resources on home mortgages or
investment loans, refinancing, debt solutions, visit this site: www.scourtheweb.com/mortgage. |
