Community Development Banking List
07-08-2010, 08:46 AM
Original message from: chavard@ubalt.edu
A colleague asked me to post the following inquiry:
1) Did banks consider social welfare payments to low-income persons as formal "income" when underwriting
sub-prime mortgages. If so, how can it be shown/documented how such benefits were counted by financial institutions as "income?"
2) Were the benefits counted as "income" b/c of the due process rights that attach to social welfare benefits and other "new property" (which peaked in the aftermath of Goldberg v. Kelly, but which have been reduced significantly since courts have repeatedly noted that there are no property rights in social welfare benefits) and did this characterization contribute to banks having some assurance that the "income" would be secure.
Off-lists replies will be fine.
THANKS!
cjh
Cassandra Jones Havard
Professor of Law
University of Baltimore School of Law
1420 N. Charles Street
Baltimore, MD 21201
410 837-5038 (o)
410 837-4492 (f)
chavard@ubalt.edu <mailto:chavard@ubalt.edu>
A colleague asked me to post the following inquiry:
1) Did banks consider social welfare payments to low-income persons as formal "income" when underwriting
sub-prime mortgages. If so, how can it be shown/documented how such benefits were counted by financial institutions as "income?"
2) Were the benefits counted as "income" b/c of the due process rights that attach to social welfare benefits and other "new property" (which peaked in the aftermath of Goldberg v. Kelly, but which have been reduced significantly since courts have repeatedly noted that there are no property rights in social welfare benefits) and did this characterization contribute to banks having some assurance that the "income" would be secure.
Off-lists replies will be fine.
THANKS!
cjh
Cassandra Jones Havard
Professor of Law
University of Baltimore School of Law
1420 N. Charles Street
Baltimore, MD 21201
410 837-5038 (o)
410 837-4492 (f)
chavard@ubalt.edu <mailto:chavard@ubalt.edu>