Don't Throw the Baby Out With the Bath Water – Wait, No! With the Loan!

The Department of Housing and Urban Development have launched investigation into some mortgage lenders.

Am I the only one that feels like these banks have gone completely haywire?

The most recent news that I’ve heard is that multiple investigations were ordered following a report in the New York Times about banks denying credit because of pregnancy or maternity leave.

Fannie Mae, Freddie Mac, and the Federal Housing Administration don’t count  disability payments while on maternity leave as income.

But guess what?

A Fannie Mae spokewoman also told the Times that a doctor’s letter with a return date to work and a letter from the mother’s employer stating her expected salary when she goes back to work would be sufficient proof of stable income.

Well, not with the banks.

Why would we suppose that logic would work here?

The banks are requiring that families reapply for their loan when the mother goes back to work.

Oddly enough the Fair Housing Act itself prohibits discrimination in lending based on race, sex, disability, and familial status INCLUDING PREGNANCY OR CHILDREN IN THE FAMILY.

Way to go banks, you’ve outdone yourselves again!  You never seize to amaze me.

In conclusion, well, many people buy a house because they’re having a baby, will we have to buy the house first and then have the baby?

SEE ALL HOMES ON THE SAN DIEGO REAL ESTATE MARKET!