Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you. I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get.
Banks are permitted to have and enforce their own underwriting standards and practices. It is only illegal if they apply the standards in a discriminatory fashion. In other words, they can not refuse a loan or charge a higher rate due to the borrower's race, religion, etc.
If you believe that is a factor in your difficulty getting a loan then you should file a complaint with t State Attorney General.
Otherwise, I am sorry to say, banks can legally decline to loan based on the borrower's credit history and it is not illegal.
I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.
If you have no further questions, and have not yet done so, please remember to leave a favorable rating (5 stars) so that I am credited by JustAnswer for assisting you. A bonus is not required, but is always appreciated.