May We Require Related Services

Answered by:

Question:

Is it permissible for our bank to offer a discounted mortgage rate if the customer opens a checking account and sets up an automatic payment?

Answer:

There are no tying prohibitions that would relate to linking a mortgage rate and opening a checking account with automatic payment. However, be aware and cautious of potential fair lending issues such as age discrimination or disparate impact discrimination that could creep into the equation.

First published on BankersOnline.com 10/4/04