Lender Didn't Discriminate by Matching Loan to Credit Risk

摘要

The U.S. Court of Appeals for the Sixth Circuit ruled that a lender did not discriminate against an African-American merely because it matched the type of loan to credit risk. (Hood v. Midwest Savings Bank, No. 02-3525, 2004 WL 771216 (6th Cir. (Ohio)), April 9, 2004) George Hood, an African-American, sought financing to build a house on a vacant lot he owned. Certified by the Federal Housing Administration as a home builder, he decided to serve as his own general contractor. However, his credit record showed that he had owned property that had been subject to foreclosure within seven years of his application and had other credit problems. Hood applied to Midwest Savings Bank, but it did not approve his first loan application based on a lack of an appraisal. The appraiser could not complete an appraisal because of no comparable sales. The lender suggested he revise the design of his house to fit within the historic neighborhood, and Hood submitted a second loan application.