This may be one of the most important posts I write. I recently refinanced. I used a company called Terrace Mortgage. They have offices in multiple states. My wife and I filled out the normal 25 or so pages of disclosures and forms advising us of everything under the sun. We locked our rate. We then had the Appraisal, which we paid for up front. Rates changed but we were fine because we locked. Then came the Bomb. Terrace Mortgage does not lend to Realtors. Let me say that again Terrace Mortgage does not lend to Realtors. Their exact wording in an email was;
"The primary borrower is self-employed as a broker/realtor. Terrace does not offer financing to borrowers in the mortgage/realestate industry."
I consider this a professional spitting on my profession. Add to it this was NEVER disclosed up front. They had my money. My rate would have gone up so I was stuck. We were able to get this mortgage though my wife's income. How would you feel if you were so blatantly discriminated against due to your profession? I was furious I consulted an attorney. Then I went to NAR. Surely this type of thing would outrage NAR ? Here is their response;
"Since REALTORS and mortgage lenders are not a protected class, there is little that can be done to protect against such discrimination.
What I might suggest to the agent who received this is to politely ask him whether he says redlining all REALTORS as a good way to grow his mortgage business?"
There is nothing polite about how I would like to respond. Franky I am disappointed by NAR's anemic response to one of its members not being able to get a loan due to discrimination based on their chosen profession.
Attorneys tell me it will cost 20,000 to fight this in court. I do not have that kind of money. The Atlanta board that governs lenders would love to get copies of everything. However due to cutbacks they do not have a consumer protection function any more. But they would be happy to keep my info on file.
So I ask you my peers, How would you feel? Realtors please step to the back of the financial bus.