Writing Mortgage Application Essay
As if getting a mortgage wasn’t hard enough these days Wells Fargo has added an essay question.
According to a report by the New York Times, Linda Falcão and her husband were asked to write a “motivational letter” as a part of their recent Wells Fargo mortgage application. This essay, akin to one you might write as a part of a college application, has become a new stipulation of applying for a mortgage at Wells Fargo.
Although a seemingly add requirement the real concerns lie in the themes Wells Fargo requires applicants to address. For example, why they were moving and their specific plans for increasing or decreasing the size of their family or property in the future. These kinds of questions raise concerns of possible violations of the Fair Housing Act, a law enforced by the Department of Housing and Urban Development (HUD).
The Fair Housing Act is intended to prevent the discrimination of lending based on disabilities, sex, or family status. This essay certainly probed into these areas relative to Ms. Falcão’s family. The New York Times quoted Ms. Falcão a civil rights attorney, as saying, “It’s wrong and invasive to ask people about their family plans” and that she was very much offended.
In addition to the questions of family size, which was coupled with a larger topic about property size, the Wells Fargo request asked questions and requested documentation about commuting distance and other properties the family might own in the local area. The intent of the lender seemed to be verifying the home as their primary residency and occupancy, which a Wells Fargo spokesman confirmed in their official statement.
The “motivational letter” request was tied to the mortgage commitment letter, offering to approve their loan if they asked the questions and provided additional documentation. Ultimately Ms. Falcão wrote the letter and Wells Fargo approved their mortgage loan.
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