disparate treatment

Compliance – Soft Pull vs. Hard Pull: Recently, our originators are requesting the ability to pull a soft pull on a client vs. a hard pull, as other lenders in the area are doing it, and it could be a cost-saving measure. Is this a regulatory issue?

Answer: QM/ATR only requires that the lender determine how they are going to validate credit history vs. telling you what type of report that you need. However, it will likely cause you regulatory issues under ECOA. When you issue adverse actions based solely on a soft pull, you do not have the entire picture of [...]

2018-11-25T20:10:14-05:00November 25th, 2018|

Compliance – Lock Policy: As a correspondent lender, do we need to have a consistent pricing policy for lock extensions, or can this be flexible based on the investors we use?

Answer: This is an issue that most lenders must deal with as they progress from broker to correspondent.  As a correspondent, you are technically the lender, whereas as a broker, your investor was technically the lender.  The lender must demonstrate fair pricing policy to reduce the risk of disparate treatment.  This is why some adjustments [...]

2018-05-31T10:19:57-05:00February 22nd, 2018|