Topic: Fair Housing Act (FHA)
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Our call center is staffed by people during business hours, but we use a recording for calls received when we are closed. Are there any ADA requirements for our call center recordings?
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Yes, under the Americans With Disabilities Act (ADA), places of public accommodation (including banks) must provide auxiliary aids and services when necessary to communicate effectively with people who have communication disabilities. This mandate applies to all aspects of your customer service offerings, including your call center. The In many cases, more than one type of…
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Can we impose higher interest rates and shorter loan terms on loans for manufactured homes? Or would this be considered redlining or disparate treatment?
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Yes, we believe that you may vary interest rates and loan terms for loans secured by manufactured homes, provided that these policies are rooted in valid business considerations that have been carefully documented. We recommend monitoring your manufactured home loans for signs of a disparate impact on protected classes and geographical areas (for example, where…
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Can we make a mortgage loan secured by property in Illinois to a nonresident alien couple who are Illinois residents?
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Lending to a non-U.S. citizen is a business decision that depends on the amount of risk your institution is willing to accept. Here, we think the risks are relatively low, because the borrowers and, more importantly, the collateral securing the mortgage loan are located in Illinois. We note that in considering the customer’s ability to…
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One of our loan officers wants to reject a loan applicant on the basis of age. The borrower is an elderly person. Isn’t that illegal?
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Yes, both federal and Illinois laws prohibit discrimination in lending activities on the basis of age. As to federal law, the Equal Credit Opportunity Act states that “it shall be unlawful for any creditor to discriminate against any applicant . . . on the basis of . . . age (provided the applicant has the…
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Do you see any problems with making a mortgage loan secured by an Illinois home to a non-U.S. citizen who lives in Illinois? How would we collect if the borrower defaults on the loan? Would we have to litigate in a foreign country?
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Lending to a non-U.S. citizen is a business decision that depends on the amount of risk your institution is willing to accept. Should the borrower default on the loan, you may have to litigate in U.S. federal court, where rules and procedures will differ from Illinois state courts. The choice between initiating a collection action…