Selling Reno And Sparks Real Estate Blog

head_left_image

New HUD Guideline For Determining Housing Discrimination

Connecticut Mortgage lender George Souta read the new FHA guidelines that went into effect on Friday, February 15. Here is what if found in the new guidelines. Very interesting...

I read an article last week on the New HUD Guideline For Determining Housing Discrimination, which went into effect this past Friday, February 15, 2013.  Preventing discrimination in housing is a good thing, but the criteria that HUD is using left me almost speechless.

Let me explain.  The new HUD rule is based on a three-part-test, and is designed to whether or not a housing practice is discriminatory even if it is neutral on the surface.  According to HUD Secretary Shaun Donovan, “housing discrimination comes in many forms. Discrimination doesn’t have to be intentional in order to have a damaging effect,”  also according to Donovan HUD, which has the responsibility and authority to interpret and enforce the Fair Housing Act, has long interpreted the Act to prohibit housing practices with an unjustified discriminatory effect, if those acts actually or predictably result in a disparate impact on a group of persons, or create, increase, reinforce or perpetuate segregated housing patterns.” 

Donovan's second statement is what left me almost speechless.  If this is going to be the standard, then who more than HUD fits their own definition of discrimination, with the implementation of their new changes this year, and with their new Debt-To-Income Ratio requirements.  OH wait maybe The Consumer Financial Protection Bureau (CFPB) and the Dodd/Frank Act.  Both of them have also reduced the ability of lower income Borrowers to purchase a home.  The CFPB wants to set across the board a 43% Debt-To-Income Ratio on all Mortgage Programs, and both the CFPB and Dodd/Frank would welcome a requirement for Borrowers to have a 20% minimum Downpayment in order to purchase a home.  Here again it would be the lower income Borrower that would be once again most affected. Let me repeat a portion of Donovan's last statement "Act to prohibit housing practices with an unjustified discriminatory effect, if those acts actually or predictably result in a disparate impact on a group of persons, or create, increase, reinforce or perpetuate segregated housing patterns.”

However, HUD does not believe that the rule will have a chilling effect on lending in lower income communities or that it will encourage lawsuits challenging credit scores, other credit assessment standards, or the requirements of the Dodd-Frank Act … "  This leaves me wondering what world do they live in.  HUD wants to apply the New HUD Guideline For Determining Housing Discrimination on Lender, but HUD, CFPB, and Dodd/Frank are the biggest violators of the above statement made by Donovan, yet the New HUD Guideline For Determining Housing Discrimination will not apply to them.  This is an excellent example of "Do as I say, but not as I do".  Is this a double standard or what?

 

*******************************************************************************

 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Your Home. My Priority. Since 2003

NV LIC: S.0061129

Certified Distressed Property Expert (CDPE)
Certified Default Resolution Specialist (CDRS)
Short Sales & Foreclosure Resource ~ Certified (SFR)
NAR's Green Designation ~ Certified Green
Certified Negotiation Expert (CNE)
Property Manager NV PM# 167199

Ferrari-Lund Real Estate

 Cell ~ 775.846.5424

Email ~ Terrie@terrieleighton.com

 

Facebook   LinkedInTwitter

Comment balloon 0 commentsTerrie Leighton • February 18 2013 07:24AM
New HUD Guideline For Determining Housing Discrimination
share
Connecticut Mortgage lender George Souta read the new FHA guidelines that went into effect on Friday, February 15. Here is what if found in the new guidelines. Very interesting… I read an article last week on the New HUD Guideline For… more
Bank of America’s New MLS Requirement for Short Sales
share
Kathleen Daniels of San Jose, CA wrote the post below about Bank of America's new MLS short sale requirements. This is an attempt by BofA to help control certain/bad behavior that is on the rise from some real estate agents. Please read the… more
Why Sell Your Reno Home in 2013
share
~Why selling your Reno home now is a good idea~ If you are a Reno homeowner struggling with the decision of selling your home now or waiting for the market to improve, now may be the right time to sell. The real estate market here in Northern… more
Beware of Foreclosure Rescue and Loan Modification Scams
share
Homeowenrs should always be wary of promises for loan modification, mortgage relief, and foreclosure rescue as scammers continue to prey on consumers who are vulnerable and financially stressed In most states, it is illegal for any person,… more
November 2012 To The Point From Reno Sparks Association of REALTORS
share
The Reno Sparks Association of Realtors latest monthly "To The Point " market analyses is here. November marks the fifth straight month of low inventory in the Reno/Sparks areas. The drop in distressed properties continues to play a huge… more
Spec Near Completion New Construction Reno NV Home For Sale~Pending!!
share
New Construction Single Family Home Overview Maps Photos Features Description $158, 700 Single Family Home Main Features … more
New Construction Home, Reno, NV Single Story Home For Sale
share
Lot 628 ~ 7545 Crest Bluff Court Reno NV Overview Maps Photos Features Description $218, 000 Single Family Home Main Features … more
Bank of America Principal Reduction Program
share
So many home owners who have negative equity/are upside down in their homes are always looking and hoping banks are going to step up and help them with principle reductions. The latest buzz that many of us keep hearing about is from Bank of America… more
Reno NV Market Report September 2012 To The Point Series
share
The Reno Sparks Association of Realtor's latest monthly "To The Point " market analyses is here. This month topics of discussion includes the extension of the Mortgage Forgiveness Relielf Tax Act that is set to expire at the end of 2012… more
Sparks NV Single Family Home For Sale Sparks NV 89436 ~ Pending SS
share
Sparks Single Family Home For Sale Overview Maps Photos Features … more