Columnist Argues Mortgage Companies Should Discriminate, Even Against Those on Parental Leave, to Limit Risk

The Atlantic: Mortgage Companies Should Discriminate, by Daniel Indiviglio:

Lately, there have been several news stories chastising mortgage companies for taking new measures to discriminate among borrowers. Fannie Mae was the target of a few of these criticisms, for doing things like forbidding to back new loans from a strategic defaulters for seven years and from homeowners that have second liens from solar panel loans. In the New York Times Tuesday, there was another article meant to spark outrage among readers: some mortgage companies are making it more difficult for pregnant women to get mortgages. Instead of dismay, however, my reaction was relief.

All measures underwriters use to discriminate among applicants aim at the same end -- to limit the risk for providing a loan. So let's take Times example to consider whether or not it's a fair practice, since it might appear particularly egregious. The news probably evoked rage among many readers because society reveres pregnant women -- as it should. But although their decision to have a child is a wonderful thing, their state must be considered in a risk context by a loan underwriter. . . .