Re: Loan denied due to proximity to high foreclosure area

[Community Development Banking List]

Original message from: sfairfield@sbcglobal.net

A low-income client whose loan was to close this Wednesday was just
denied by the bank because the home is in a high foreclosure area. Has
anyone seen this before. Any suggested remedy or response?

Thanks,

Stephan Fairfield
Covenant Community Capital
Houston, Texas

[Community Development Banking List]

Original message from: Ajloubert@aol.com

The basis for denial should either be because the applicant does not qualify
based on the loan guidelines or underwriting guidelines of the lender. If
those guidelines prohibit lending to a declining area but there is ambiguity
in those guidelines and the effected geography happens to also be one that is
inhabited by a class of population protected by the Equal Credit Opportunity
Act or the Fair Housing Act, then a concern should be raised regarding the
potential disparate outcome of those policies or guidelines to the residents
or potential residents of that community. Denying a loan application on the
basis of where the property is located was once often described as a practice
of redlining. I foolishly think optimistically and therefore won't make such
claims about an incident in which I have no details. However, your inquiry
is one that is worth looking further into in order to ascertain that such
practice isn't inadvertently occurring.

Good luck and keep asking the questions.

Andrew Loubert
President
Community Reinvestment Solutions, Inc.
215 E. Rose Lane
Phoenix, AZ 85012
_CRSArizona@aol.com_ (mailto:CRSArizona@aol.com)
(602) 791-0590



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[Community Development Banking List]

Original message from: c_halaska@tcaregs.com

[Community Development Banking List]

Original message from: Jim.Bliesner@sdcounty.ca.gov

sue the bank for violation of fair housing laws.

-----Original Message-----
From: bounce-2653081-4991793@list.cornell.edu
[mailto:bounce-2653081-4991793@list.cornell.edu]On Behalf Of Stephan
Fairfield
Sent: Monday, April 28, 2008 3:29 PM
To: communitydevelopmentbanking-l@cornell.edu
Subject: Loan denied due to proximity to high foreclosure area


A low-income client whose loan was to close this Wednesday was just
denied by the bank because the home is in a high foreclosure area. Has
anyone seen this before. Any suggested remedy or response?

Thanks,

Stephan Fairfield
Covenant Community Capital
Houston, Texas

[Community Development Banking List]

Original message from: shonbornm@nassaued.org

...or at least make them very uncomfortable regarding a possible lawsuit
and/or negative publicity. The local news might love to cover a story
about the cold uncaring bank reneging on a loan to a low income borrower
based on where they live.

Also, a letter to their regulator and/or a complaint about a possible
CRA violation might also be effective. You might want to have a
conversation with an officer of the bank about all the possible
responses to their failure to follow through on an approved loan.


-----Original Message-----
From: bounce-2658267-8116691@list.cornell.edu
[mailto:bounce-2658267-8116691@list.cornell.edu] On Behalf Of Bliesner,
Jim
Sent: Wednesday, April 30, 2008 3:01 PM
To: Stephan Fairfield; communitydevelopmentbanking-l@cornell.edu
Subject: RE: Loan denied due to proximity to high foreclosure area

sue the bank for violation of fair housing laws.

-----Original Message-----
From: bounce-2653081-4991793@list.cornell.edu
[mailto:bounce-2653081-4991793@list.cornell.edu]On Behalf Of Stephan
Fairfield
Sent: Monday, April 28, 2008 3:29 PM
To: communitydevelopmentbanking-l@cornell.edu
Subject: Loan denied due to proximity to high foreclosure area


A low-income client whose loan was to close this Wednesday was just
denied by the bank because the home is in a high foreclosure area. Has
anyone seen this before. Any suggested remedy or response?

Thanks,

Stephan Fairfield
Covenant Community Capital
Houston, Texas

[Community Development Banking List]

Original message from: dana_ward_mainestreamfinance@msn.com



I personally would approach this very cautiously and not make any assumptions about what did or what did not transpire between the bank and the customer. In my opinion, hearing only one side of the story is not a good enough basis to make recommendations such as suing the bank or threatening to go to the media. It could be a case of a Loan Officer making a very poor decision and not something the bank would do as an institution. If that is the case, of course better oversight and education of the Loan Officer is warranted.

I would recommend contacting the bank's Compliance Officer to see if they were aware of what transpired and to get the bank's side of the story before passing judgment on what did or did not occur. That action of course presumes that the customer would sign a written authorization allowing the bank to discuss the matter and that the bank would be wiling to do so. To hurt the reputation of a bank without concrete evidence is not very prudent and is very risky for one personally, professionally, and reflects on the reputation of their organization.

Having been a Loan Officer for many years I know that all bankers are not saints, and redlining certainly did occur in the past; but for a Compliance Officer to willingly let it occur in today's lawsuit happy society is hard for me to buy.

That's my two cents worth.


Dana E. Ward
Loan Officer
MaineStream Finance
P.O. Box 1162
Bangor, ME 04401-1162

Tel: (207) 973-3555
Fax:(207) 973-3699

MaineStream Finance is a HUD Approved Lender, State of Maine Supervised Lender, and a Department of Treasury regulated Community Development Financial Institution (CDFI). MaineStream Finance originates mortgages through the Opportunity Mortgage Network (OMN) mortgage platform. Please visit the OMN web site at www.savvysoundandsafe.org. for more information.

For customers 62 and over, to learn more about HUD insured Home Equity Conversion Mortgages (aka reverse mortgages) that we offer, please contact Dana Ward at 973-3555; or via email at dward@penquis.org





This communication contains information that may be confidential, proprietary in nature, and may also be attorney-client privileged. It is for the exclusive use of the intended recipient(s). If you are not the intended recipient(s) or the person responsible for delivering it to the intended recipient(s), please note that any dissemination, distribution, or copying of this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender and delete the original communication. Thank you for your cooperation.


Subject: RE: Loan denied due to proximity to high foreclosure area> Date: Thu, 1 May 2008 09:05:35 -0400> From: shonbornm@nassaued.org> To: communitydevelopmentbanking-l@cornell.edu> > ...or at least make them very uncomfortable regarding a possible lawsuit> and/or negative publicity. The local news might love to cover a story> about the cold uncaring bank reneging on a loan to a low income borrower> based on where they live.> > Also, a letter to their regulator and/or a complaint about a possible> CRA violation might also be effective. You might want to have a> conversation with an officer of the bank about all the possible> responses to their failure to follow through on an approved loan.> > > -----Original Message-----> From: bounce-2658267-8116691@list.cornell.edu> [mailto:bounce-2658267-8116691@list.cornell.edu] On Behalf Of Bliesner,> Jim> Sent: Wednesday, April 30, 2008 3:01 PM> To: Stephan Fairfield; communitydevelopmentbanking-l@cornell.edu> Subject: RE: Loan denied due to proximity to high foreclosure area> > sue the bank for violation of fair housing laws.> > -----Original Message-----> From: bounce-2653081-4991793@list.cornell.edu> [mailto:bounce-2653081-4991793@list.cornell.edu]On Behalf Of Stephan> Fairfield> Sent: Monday, April 28, 2008 3:29 PM> To: communitydevelopmentbanking-l@cornell.edu> Subject: Loan denied due to proximity to high foreclosure area> > > A low-income client whose loan was to close this Wednesday was just> denied by the bank because the home is in a high foreclosure area. Has> anyone seen this before. Any suggested remedy or response?> > Thanks,> > Stephan Fairfield> Covenant Community Capital> Houston, Texas> > > > >
__________________________________________________ _______________
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[Community Development Banking List]

Original message from: lanemurcia@msn.com


This advice is very good. Sometimes thing happen in advertently. I work at a bank and all bankers are trained to avoid redlining. If you simply ask the question to the loan officer "isn't that redlining?" you will get a reaction, most likely in favor of the client. No need to go to the media. You could also contact your local fair housing organization. Depending on the situtation, they might "test" the bank to see if any discriminatory practices are prevelent or not, including redlining.


From: dana_ward_mainestreamfinance@msn.comTo: shonbornm@nassaued.org; communitydevelopmentbanking-l@cornell.eduSubject: RE: Loan denied due to proximity to high foreclosure areaDate: Thu, 1 May 2008 11:52:01 -0400


I personally would approach this very cautiously and not make any assumptions about what did or what did not transpire between the bank and the customer. In my opinion, hearing only one side of the story is not a good enough basis to make recommendations such as suing the bank or threatening to go to the media. It could be a case of a Loan Officer making a very poor decision and not something the bank would do as an institution. If that is the case, of course better oversight and education of the Loan Officer is warranted. I would recommend contacting the bank's Compliance Officer to see if they were aware of what transpired and to get the bank's side of the story before passing judgment on what did or did not occur. That action of course presumes that the customer would sign a written authorization allowing the bank to discuss the matter and that the bank would be wiling to do so. To hurt the reputation of a bank without concrete evidence is not very prudent and is very risky for one personally, professionally, and reflects on the reputation of their organization. Having been a Loan Officer for many years I know that all bankers are not saints, and redlining certainly did occur in the past; but for a Compliance Officer to willingly let it occur in today's lawsuit happy society is hard for me to buy. That's my two cents worth.
Dana E. Ward
Loan Officer
MaineStream Finance
P.O. Box 1162
Bangor, ME 04401-1162

Tel: (207) 973-3555
Fax:(207) 973-3699

MaineStream Finance is a HUD Approved Lender, State of Maine Supervised Lender, and a Department of Treasury regulated Community Development Financial Institution (CDFI). MaineStream Finance originates mortgages through the Opportunity Mortgage Network (OMN) mortgage platform. Please visit the OMN web site at www.savvysoundandsafe.org. for more information.

For customers 62 and over, to learn more about HUD insured Home Equity Conversion Mortgages (aka reverse mortgages) that we offer, please contact Dana Ward at 973-3555; or via email at dward@penquis.org





This communication contains information that may be confidential, proprietary in nature, and may also be attorney-client privileged. It is for the exclusive use of the intended recipient(s). If you are not the intended recipient(s) or the person responsible for delivering it to the intended recipient(s), please note that any dissemination, distribution, or copying of this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender and delete the original communication. Thank you for your cooperation.
> Subject: RE: Loan denied due to proximity to high foreclosure area> Date: Thu, 1 May 2008 09:05:35 -0400> From: shonbornm@nassaued.org> To: communitydevelopmentbanking-l@cornell.edu> > ...or at least make them very uncomfortable regarding a possible lawsuit> and/or negative publicity. The local news might love to cover a story> about the cold uncaring bank reneging on a loan to a low income borrower> based on where they live.> > Also, a letter to their regulator and/or a complaint about a possible> CRA violation might also be effective. You might want to have a> conversation with an officer of the bank about all the possible> responses to their failure to follow through on an approved loan.> > > -----Original Message-----> From: bounce-2658267-8116691@list.cornell.edu> [mailto:bounce-2658267-8116691@list.cornell.edu] On Behalf Of Bliesner,> Jim> Sent: Wednesday, April 30, 2008 3:01 PM> To: Stephan Fairfield; communitydevelopmentbanking-l@cornell.edu> Subject: RE: Loan denied due to proximity to high foreclosure area> > sue the bank for violation of fair housing laws.> > -----Original Message-----> From: bounce-2653081-4991793@list.cornell.edu> [mailto:bounce-2653081-4991793@list.cornell.edu]On Behalf Of Stephan> Fairfield> Sent: Monday, April 28, 2008 3:29 PM> To: communitydevelopmentbanking-l@cornell.edu> Subject: Loan denied due to proximity to high foreclosure area> > > A low-income client whose loan was to close this Wednesday was just> denied by the bank because the home is in a high foreclosure area. Has> anyone seen this before. Any suggested remedy or response?> > Thanks,> > Stephan Fairfield> Covenant Community Capital> Houston, Texas> > > > >

Back to work after baby– how do you know when you’re ready?

[Community Development Banking List]

Original message from: garyandrewevans@yahoo.com

I would also agree that approaching this cautiously is important. Get all the facts before ringing the alarm.

I could not tell from the e-mail (I may have missed it so excuse me if I did) what the true loan scenario was. Did the borrower have strong credit, verifiable income and any downpayment? Was this just a case of the property being questionable - or were there also issues with the quality of the loan as a whole?

Who let you know that the denial was based on the property location? Was it the person who got denied - or did you have something in your hand from the bank stating the reasons? If it were me, I would start with the denial letter to see if the "official" issue. Then I would my way through the loan officer then to the compliance officer (as suggested below).

Just a thought.

G


Alan Lane-Murcia <lanemurcia@msn.com> wrote:
.hmmessage P { margin:0px; padding:0px } body.hmmessage { FONT-SIZE: 10pt; FONT-FAMILY:Tahoma } This advice is very good. Sometimes thing happen in advertently. I work at a bank and all bankers are trained to avoid redlining. If you simply ask the question to the loan officer "isn't that redlining?" you will get a reaction, most likely in favor of the client. No need to go to the media. You could also contact your local fair housing organization. Depending on the situtation, they might "test" the bank to see if any discriminatory practices are prevelent or not, including redlining.


---------------------------------
From: dana_ward_mainestreamfinance@msn.com
To: shonbornm@nassaued.org; communitydevelopmentbanking-l@cornell.edu
Subject: RE: Loan denied due to proximity to high foreclosure area
Date: Thu, 1 May 2008 11:52:01 -0400

.ExternalClass .EC_hmmessage P {padding:0px;} .ExternalClass body.EC_hmmessage {font-size:10pt;font-family:Tahoma;}
I personally would approach this very cautiously and not make any assumptions about what did or what did not transpire between the bank and the customer. In my opinion, hearing only one side of the story is not a good enough basis to make recommendations such as suing the bank or threatening to go to the media. It could be a case of a Loan Officer making a very poor decision and not something the bank would do as an institution. If that is the case, of course better oversight and education of the Loan Officer is warranted.

I would recommend contacting the bank's Compliance Officer to see if they were aware of what transpired and to get the bank's side of the story before passing judgment on what did or did not occur. That action of course presumes that the customer would sign a written authorization allowing the bank to discuss the matter and that the bank would be wiling to do so. To hurt the reputation of a bank without concrete evidence is not very prudent and is very risky for one personally, professionally, and reflects on the reputation of their organization.

Having been a Loan Officer for many years I know that all bankers are not saints, and redlining certainly did occur in the past; but for a Compliance Officer to willingly let it occur in today's lawsuit happy society is hard for me to buy.

That's my two cents worth.


Dana E. Ward
Loan Officer
MaineStream Finance
P.O. Box 1162
Bangor, ME 04401-1162

Tel: (207) 973-3555
Fax:(207) 973-3699

MaineStream Finance is a HUD Approved Lender, State of Maine Supervised Lender, and a Department of Treasury regulated Community Development Financial Institution (CDFI). MaineStream Finance originates mortgages through the Opportunity Mortgage Network (OMN) mortgage platform. Please visit the OMN web site at www.savvysoundandsafe.org. for more information.

For customers 62 and over, to learn more about HUD insured Home Equity Conversion Mortgages (aka reverse mortgages) that we offer, please contact Dana Ward at 973-3555; or via email at dward@penquis.org





This communication contains information that may be confidential, proprietary in nature, and may also be attorney-client privileged. It is for the exclusive use of the intended recipient(s). If you are not the intended recipient(s) or the person responsible for delivering it to the intended recipient(s), please note that any dissemination, distribution, or copying of this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender and delete the original communication. Thank you for your cooperation.




Subject: RE: Loan denied due to proximity to high foreclosure area
Date: Thu, 1 May 2008 09:05:35 -0400
From: shonbornm@nassaued.org
To: communitydevelopmentbanking-l@cornell.edu

...or at least make them very uncomfortable regarding a possible lawsuit
and/or negative publicity. The local news might love to cover a story
about the cold uncaring bank reneging on a loan to a low income borrower
based on where they live.

Also, a letter to their regulator and/or a complaint about a possible
CRA violation might also be effective. You might want to have a
conversation with an officer of the bank about all the possible
responses to their failure to follow through on an approved loan.


-----Original Message-----
From: bounce-2658267-8116691@list.cornell.edu
[mailto:bounce-2658267-8116691@list.cornell.edu] On Behalf Of Bliesner,
Jim
Sent: Wednesday, April 30, 2008 3:01 PM
To: Stephan Fairfield; communitydevelopmentbanking-l@cornell.edu
Subject: RE: Loan denied due to proximity to high foreclosure area

sue the bank for violation of fair housing laws.

-----Original Message-----
From: bounce-2653081-4991793@list.cornell.edu
[mailto:bounce-2653081-4991793@list.cornell.edu]On Behalf Of Stephan
Fairfield
Sent: Monday, April 28, 2008 3:29 PM
To: communitydevelopmentbanking-l@cornell.edu
Subject: Loan denied due to proximity to high foreclosure area


A low-income client whose loan was to close this Wednesday was just
denied by the bank because the home is in a high foreclosure area. Has
anyone seen this before. Any suggested remedy or response?

Thanks,

Stephan Fairfield
Covenant Community Capital
Houston, Texas








---------------------------------
Back to work after baby– how do you know when you’re ready?

[Community Development Banking List]

Original message from: Cdmlr@aol.com

You have a good point. Years ago, Bank of America hesitated approved my
mortgage application, but did not want to make a loan for a condo in a prosperous
neighborhood because the ratio of renters to owners was not within their
guidelines.

The loan applicant in this case might consider a loan through a credit union
or a community-based, nonprofit financial institution before considering a
lawsuit.




In a message dated 5/1/2008 12:56:10 P.M. Eastern Daylight Time,
dana_ward_mainestreamfinance@msn.com writes:


I personally would approach this very cautiously and not make any
assumptions about what did or what did not transpire between the bank and the customer.
In my opinion, hearing only one side of the story is not a good enough basis
to make recommendations such as suing the bank or threatening to go to the
media. It could be a case of a Loan Officer making a very poor decision and
not something the bank would do as an institution. If that is the case, of
course better oversight and education of the Loan Officer is warranted.

I would recommend contacting the bank's Compliance Officer to see if they
were aware of what transpired and to get the bank's side of the story before
passing judgment on what did or did not occur. That action of course presumes
that the customer would sign a written authorization allowing the bank to
discuss the matter and that the bank would be wiling to do so. To hurt the
reputation of a bank without concrete evidence is not very prudent and is very
risky for one personally, professionally, and reflects on the reputation of
their organization.

Having been a Loan Officer for many years I know that all bankers are not
saints, and redlining certainly did occur in the past; but for a Compliance
Officer to willingly let it occur in today's lawsuit happy society is hard for
me to buy.

That's my two cents worth.


Dana E. Ward
Loan Officer
MaineStream Finance
P.O. Box 1162
Bangor, ME 04401-1162
Tel: (207) 973-3555
Fax:(207) 973-3699
MaineStream Finance is a HUD Approved Lender, State of Maine Supervised
Lender, and a Department of Treasury regulated Community Development Financial
Institution (CDFI). MaineStream Finance originates mortgages through the
Opportunity Mortgage Network (OMN) mortgage platform. Please visit the OMN web
site at _www.savvysoundandsafe.org_ (http://www.savvysoundandsafe.org/) ('http://www.savvysoundandsafe.org/)') . for
more information.
For customers 62 and over, to learn more about HUD insured Home Equity
Conversion Mortgages (aka reverse mortgages) that we offer, please contact Dana
Ward at 973-3555; or via email at dward@penquis.org
This communication contains information that may be confidential,
proprietary in nature, and may also be attorney-client privileged. It is for the
exclusive use of the intended recipient(s). If you are not the intended
recipient(s) or the person responsible for delivering it to the intended recipient(s),
please note that any dissemination, distribution, or copying of this
communication is strictly prohibited and may be unlawful. If you have received this
communication in error, please immediately notify the sender and delete the
original communication. Thank you for your cooperation.



Subject: RE: Loan denied due to proximity to high foreclosure area
Date: Thu, 1 May 2008 09:05:35 -0400
From: shonbornm@nassaued.org
To: communitydevelopmentbanking-l@cornell.edu

...or at least make them very uncomfortable regarding a possible lawsuit
and/or negative publicity. The local news might love to cover a story
about the cold uncaring bank reneging on a loan to a low income borrower
based on where they live.

Also, a letter to their regulator and/or a complaint about a possible
CRA violation might also be effective. You might want to have a
conversation with an officer of the bank about all the possible
responses to their failure to follow through on an approved loan.


-----Original Message-----
From: bounce-2658267-8116691@list.cornell.edu
[mailto:bounce-2658267-8116691@list.cornell.edu] On Behalf Of Bliesner,
Jim
Sent: Wednesday, April 30, 2008 3:01 PM
To: Stephan Fairfield; communitydevelopmentbanking-l@cornell.edu
Subject: RE: Loan denied due to proximity to high foreclosure area

sue the bank for violation of fair housing laws.

-----Original Message-----
From: bounce-2653081-4991793@list.cornell.edu
[mailto:bounce-2653081-4991793@list.cornell.edu]On Behalf Of Stephan
Fairfield
Sent: Monday, April 28, 2008 3:29 PM
To: communitydevelopmentbanking-l@cornell.edu
Subject: Loan denied due to proximity to high foreclosure area


A low-income client whose loan was to close this Wednesday was just
denied by the bank because the home is in a high foreclosure area. Has
anyone seen this before. Any suggested remedy or response?

Thanks,

Stephan Fairfield
Covenant Community Capital
Houston, Texas








____________________________________
Back to work after baby– _how do you know when you’re ready?_
(http://lifestyle.msn.com/familyandparenting/articleNW.aspx?cp-documentid=5797498&ocid=T067MS ('http://lifestyle.msn.com/familyandparenting/articleNW.aspx?cp-documentid=5797498&ocid=T067MS')
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