What race code would you use?
I had a loan office in one of our branches ask a very good question today. She has a borrower who is from Iraq and she was unsure wich race code to use. Any suggestions??? Michelle Kerosky Quality Control Auditor NVR Mortgage Finance, Inc.
The decision should be made by the applicant. Was the applicant presented with the options?
If it is a face to face interview and the borrower does not disclose, then there is guidance we received from the FFIEC website that refers you to the White House definitions of race and ethnicity http://www.whitehouse.gov/omb/inforeg/re_app-a-update.pdf. A person from the Middle East--Iran, Iraq, Saudi Arabia would be classified as "White." A person from the far east-Pakistan, Afkanistan etc, would be classified as Asian.[:(!]
The only time the loan officer will need to make that determination is if the application was taken face to face and the applicant indicated "do not wish to furnish" the information; in that instance the loan officer needs to make a determination of ethnicity, race and gender based on visual observation or surname. See Appendix B to Part 203 in the "A guide to HMDA Reporting Getting it Right". You can access this on the FFIEC.gov website.