How to Be “Politically Correct” When You Have to Reject a Mortgage Loan!
If you ask me, the Adverse Action forms are too blunt.
Borrowers get depressed (or develop a complex) when they read the form and the standard reasons for being rejected for the loan. Rejected for “late payments,” “poor credit,” “excessive obligations in relation to income,” “temporary or irregular employment,” etc.
While the form is designed to “tell-it-like-it-is,” I wondered what it would be like to rewrite the reasons for rejecting the loan to be more politically correct.
So, here’s how the Adverse Action Form might be re-worded:
Value or type of collateral not sufficient – A negative security value
Poor Credit Performance – Inability to successfully manage finances
Bankruptcy – Debt realignment involving federal assistance
Delinquent past due or present credit obligations – Policy differences with creditors
Unable to verify employment – Given a new outplacement opportunity
Temporary or irregular employment – Career adjustment period
Temporary residence – Lifestyle preference
Foreclosure – Involuntary transfer of property
Credit application incomplete – Inattention to details
So, what do you think about forming the Association of Politically Correct Lenders?