When qualifying an applicant, is it allowed for an MLO to inquire about the number of children a newly married couple intends to have?

The reasoning behind the correct answer lies in the regulations set forth by various fair housing and lending laws, such as the Fair Housing Act. When qualifying applicants for a mortgage, it is crucial for an MLO to adhere to guidelines that prevent discrimination based on familial status. Inquiring about the number of children a couple intends to have falls under this category, as it can be perceived as a discriminatory practice and may lead to bias in the lending process.

By prohibiting such inquiries, the law ensures that all applicants are treated equally, regardless of their plans for family expansion. This helps to protect the rights of potential homebuyers and maintains the integrity of the lending process. MLOs are trained to assess applicants based on financial qualifications rather than personal or potentially intrusive details regarding family planning.

Understanding this perspective reinforces the importance of focusing on the financial aspects of a loan application, such as income, debt, and creditworthiness, rather than delving into personal matters that do not directly impact the mortgage qualification. The content and intent of the inquiry play a significant role in maintaining compliance with lending practices and fair housing laws.