Industry NewsMortgage

FHA lenders accused of snubbing subprime borrowers

'Mystery shopping' leads to complaints against 22 lenders
Published on Dec 8, 2010

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by CareyBot

Most FHA lenders aren't offering mortgages to would-be borrowers with credit scores under 620, the National Community Reinvestment Coalition alleges in complaints filed with federal regulators against 22 lenders.

The NCRC said "mystery shopping" tests of the nation's top FHA-approved lenders found that two-thirds -- 32 lenders in total -- would not offer applications for FHA-guaranteed loans to potentially qualified borrowers with FICO scores below 620.

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