Don’t try to get mortgage lending if pregnant

You need to know this if you want a house to raise a family in. You can’t get a mortgage loan if you’re pregnant and quitting your job for the family. Mortgage lenders are too scared that they won’t get their payments with this situation. The couple doesn’t meet strict standards is the excuse mortgage lenders use to stay away from being in violation of the Pregnancy Discrimination Act.

Pregnancy discrimination caused by all the new mortgage lending standards

Pregnancy discrimination is happening because Fannie Mae and Freddie Mac start a loan quality initiative long before they were ousted. Fannie and Freddie made is needed for a loan to go out that the financial status, reports that New York Times, has to be checked at the end of the process. The loan quality initiative requires that borrowers be qualified for the loan they’re receiving on the day the loan closes instead of when the papers are all signed and finished. The income has to be guessed to continue for the next three years also for the loan.

Maternity leave makes it look difficult to mortgage lenders

Some mortgage lenders are flirting with pregnancy discrimination because of maternity leave. Mortgage lenders see simply a short term disability insurance they have to deal with. Anybody with maternity leave won’t qualify for loans with Fannie and Freddie because the payments don’t continue for 3 years. You won’t be able to apply for a mortgage loan again until you are back to working full time. A couple expecting within the next few weeks is an example used by the Times article. Both salaries would be required to qualify for a loan on the home they wanted. The mortgage broker said the expectant mother would not be considered “employed” when it was time to close the loan, which would probably disqualify her.

Pregnancy Discrimination Act doesn’t consist of mortgage borrowers

Mortgage lenders say they are not discriminating against pregnancy but against income. When it comes to lending, Lawyers.com teaches us that gender and marital status are the only things protected. The Equal Credit Opportunity Act also bars lenders from asking about your plans for having or raising kids. However, lenders can ask questions about expenses related to your dependents. In 1978, pregnancy discrimination was no longer allowed. The Pregnancy Discrimination Act declares that discrimination due to pregnancy, childbirth or related medical conditions is unlawful sex discrimination. But the Pregnancy Discrimination Act only applies to employment, not borrowing.

Additional info at these websites

New York Times
nytimes.com/2010/07/20/your-money/mortgages/20mortgage.html
Lawyers.com
lawyers.com/our-blog/archives/251-Pregnancy-Leave-Puts-Mortgage-in-Doubt.html