Does your bank need to know if you can't get pregnant?

[n2doc]

We can all agree that stricter loan standards, though late in coming, are only a good thing for this troubled national market. What we might not agree upon are the critera banks now use. We might even say some of those critera are none of the bank's business.

This is the debate that recently surfaced on real estate blog "The Frontsteps." A reader/commenter wrote:

For the past 12 months, all our attempts to refi to lower the rate to 5.25 or better have fallen short. Many times, it starts great, then stops short when reaching the line that says I do not work regardless of any other financial info. (2 borrowers = 2 jobs for more than 24 months each)

We have found a broker that is ok to attempt a refi, but he is asking for Copies of 2007 and 2008 W2s and 1040 Federal Tax Returns (all pages and schedules). Although I understand where this request comes from (and I agree that lax practices created the current mess) I an extremely concerned about giving our most intimate and private information away.

From my point of view, there is absolutely no justification for disclosing to a loan officer:

- all details of all the medical bills.
- all details of fertility treatment, adoption, abortion and other family expenses and whatever items that can be listed.
- all details about your nanny and other children care expenses.
- all details about your religious life: who you gave to, and how much
- all details about your political life: who you supported and how much...

Not only do banks want this information, they want it twice.



Read more: http://www.sfgate.com/cgi-bin/blogs/ontheblock/detail?entry_id=51385#ixzz0We30Z7HS

[nashville_brook]

1. holy shit -- this is outrageous.

k and r for visibility.

[cbdo2007]

2. This doesn't sound like a reputable company. They don't need to knw any of that

and I would almost call BS on this whole story because it's so outlandish. Sounds like someone is just trying to get some group riled up.

[JoeyT]

3. Sounds like they're taking a page from the small loans/payday loan companies.

Who are well known for prying into stuff that isn't their business.

[MisterP]

4. well, remember that the mortgage collapse came not from the loans themselves, but their

transformation into Milken-Boesky-Helmsley stocks after the fact