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People receiving SSD benefits face home financing challenges


The inability to work due to a disability can leave Los Angeles residents with a great deal of frustration. That frustration can be multiplied when those same individuals face discrimination because they are disabled and receiving Social Security Disability benefits.

According to a recent report, some people who are receiving SSD benefits face discrimination when it comes to getting financing for buying residential property. This can be quite a problem because, as the report points out, approximately 15 million Americans receive SSD benefits. If a percentage of those individuals are facing discrimination in regards to housing, the problem could get out of control very fast.

However, the report also notes that the Consumer Financial Protection Bureau has issued a warning to lenders that they are not to discriminate against an applicant for a loan simply because that person is receiving SSD benefits. What is particularly troubling about this issue is that some lenders will reportedly ask a loan applicant who is disabled for actual medical information about the disability.

There is apparently also some concern among lenders on when SSD benefits are set to expire, or what will happen if an applicant's disability isn't permanent and that person returns to an uncertain workforce. If lenders are not following federal regulations in regards to applications for loans they could face substantial fines. The recent article noted one lender in particular that was slapped with a $104,000 fine back in August of this year. The warning from the CFPB noted that while it is understandable when lenders want to get more information about an applicant's income, they should not cross the line.

Source: housingwire.com, "CFPB: Don't discriminate against borrowers on Social Security disability," Ben Lane, Nov. 19, 2014

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