I couldn’t believe the ridiculous, self-serving article about alleged mortgage discrimination (by Robert Bruss) that appeared in your Real Estate section (Oct. 31). He claims the buyers were initially denied a mortgage because they’re Samoan? That’s insane.
I have seven years’ mortgage underwriting experience and am currently employed by a major secondary market mortgage investor. I can tell you it is much more likely that the home’s sales price did exceed the fair market appraised value, as is common in many rent-with-option transactions.
The S&L president probably approved the loan just to avoid having Bruss unfairly name the institution as “discriminatory” in your paper. I would love the opportunity to review that loan file and give the reading public the viewpoint of someone who had no financial gain in the transaction.
It is much more likely that the buyers were victimized by an experienced, predatory seller than a mortgage lender that doesn’t like Samoans.
