Fair Lending Policy

OUR COMMITMENT TO FAIR LENDING

FocusOne Mortgage, LLC does not tolerate any form of discrimination and is committed to providing loans to all applicants in a consistent, fair and reasonable basis. As part of our commitment to provide fair lending, FocusOne Mortgage Solutions requires its officers, employees, agents, and third-parties with whom we deal to act in accordance with the letter and spirit of all fair lending laws and regulations in all aspects of lending (including the marketing of credit products, the application process, making of credit decisions, servicing, collection, and foreclosure activities) without regard to:

• Sex

• Marital status

• Race

• Color

• Creed

• Religion

• National Origin

• Age (provided the applicant has the capacity to enter into a binding contract)

• Disability (including the use of a guide or support animal)

• Familial status (including family responsibilities and childbearing potential)

• Military status

• Political affiliation

• Sexual orientation

• Receipt of public assistance or unemployment

• Good faith exercise of any rights under the Consumer Protection Act

 

EQUAL CREDIT OPPORTUNITY ACT REG. B (ECOA)

ECOA prohibits discrimination in any aspect of a credit transaction based on the following characteristics:

• Age (provided the applicant has the capacity to contract)

• Race or color

• Religion

• National Origin

• Sex

• Marital status

• Applicant's receipt of income received from any public assistance program

• Applicant's exercise, in good faith, or any rights under the Consumer Credit Protection Act

NOTE: ECOA covers all extensions of credit and certain technical requirements that are meant to help further the purpose of ECOA.

 

 

FAIR HOUSING ACT (FHAct)

The Fair Housing Act prohibits discrimination in all attributes of real estate related transactions including:

• Making loans to buy, build, repair or improve a dwelling

• Purchasing real estate loans

• Selling, brokering or appraising residential real estate

• Selling or renting a dwelling

 

Discrimination based on:

• Race or color

• National origin

• Religion

• Sex

• Familial status (Defined as children under the age of 18 living with a parent or legal custodian, pregnant women, and people securing custody of children under 18)

• Handicap

 

In determining the:

• Amount

• Interest rate

• Duration

• Other credit terms

NOTE: FHA is limited to residential Real eestate related transactions or a loan secured by residential real estate transactions and does not have technical requirements.

 

HOME MORTGAGE DISCLOSURE ACT (HMDA) REG. C

HMDA is a disclosure law that requires mortgage lenders to compile and disclose information about applications for home purchase, refinance and home improvement loans. This reporting allows both the public and regulators to determine responsiveness to the home financing needs of communities in which business is conducted. The information reported includes income, race, sex, geographic area, pricing, and other factors.

 

Prohibited Discrimination Factors

If a credit, pricing, or other decision is made on a prohibited basis, it is a violation of the fair lending laws and regulations. These are some examples of illegal discrimination recognized under the ECOA and FHAct:

Examples of Prohibited Discrimination Factors

• Failure to provide information or services or provide different information or services regarding any aspect of the lending process, including credit availability, application procedures, or lending standards.

• Discourage or selectively encourage applicants with respect to inquires about or applying for credit

• Refuse to extend credit or use different standards in determining whether to extend credit

• Vary the terms of credit offered including the amount, interest rate, duration or type of loan.

• Use different standards to evaluate collateral

• Treat a borrower differently in servicing a loan or invoking default remedies

• Use different standards for pooling or packaging a loan in the secondary market.

 

Examples of Prohibited Characteristics

• An applicant, prospective applicant or borrower

• A person associated with an applicant, prospective applicant or borrower

• The present or prospective occupants of either the property to be financed or the characteristics of neighborhood or other areas where property to be financed is located.

• Reasonable accommodations for a person with disabilities when necessary to afford the person an equal opportunity to apply for credit.

 

Nondiscriminatory Advertising

FocusOne Mortgage Solutions must not:

• Engage in any form of advertising of real estate related loans which indicate there is discrimination on a prohibited basis.

• Advertisements must not contain any words, symbols, models, or other forms of communication that suggest a discriminatory preference or policy of exclusion

• Advertisements of real estate products must include a facsimile of the prescribed equal housing lender logo (for written advertisements) or prescribed language (for oral advertisements).

 

Types of Lending Discrimination

The courts have recognized three methods of identifying lending discrimination under the ECOA and FHAct.

1. Overt - There is overt evidence of discrimination when a lender:

   • Openly discriminates on a prohibited basis.

   • When a lender expresses but does not act on a discriminatory preference

   • Example: Redining

2. Comparative evidence - This type of disparate treatment occurs when a lender treats a credit applicant differently based on one of the prohibited basis. It does not require any showing that the treatment was a motivated by predjudice or a conscious intention to discriminate against a person beyond the difference in treatment itself. Example: Steering

3. Evidence - When a lender applies a racially or otherwise neutral policy or practice disproportionately excluded or burdens certian persons on a prohibited basis; the policy or practice is described as having a "desparate impact". Example: Income standard for credit applicants.