Home Equity Loan Law

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Is it legal for a financial instution to deny a person a home equity loan based on the fact that they have not worked in the same line of business for two consecutive years or because they do not have a college degree? If it is not legal where do you find the documentation of the law?

Thank you. Faith

-- Faithann (McVergh@aol.com), December 16, 1999


I'm not sure but usually they like to see that a person has stability in the work place. So the part where a person needs to have two years in the same field is probably correct. But I've never heard of a financial institution requiring you to have a college degree.

-- Freddy Monroe (motion123@dellnet.com), December 20, 1999.

You may wish to check the state's unfair trade practices law. Lending institutions are permitted, and indeed to some degree required, to have sound underwriting practices. The "law" on this issue would likely be in the absence of a prohibition on a particular practice, rather than a specific statute expressly allowing it.

-- Stephen F. Brock (Y2000esq@aol.com), January 03, 2001.

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