Daily Archives: September 27, 2011

Lenders factoring in Online Gambling in the Mortgage Process

Casino Watch Focus has repeatedly reported on the impacts of online gambling. Most stories have centered on the legal battles to keep online gambling illegal.  However, online gambling stories are now reaching far beyond the political fights as illustrated by the report of Facebook changing their gambling advertising policies. Now, an online source is reporting that social networking isn’t the only industry to look at online gambling, as banks are now factoring in such activities into their mortgage approval process:

Anyone looking to become approved for a mortgage may want to curb their betting habits. It has been reported that lenders are now taking into account betting transactions that are made on an applicants bank account. The most common form of these transactions is online gambling sites.

One of the reasons that financial institutions look into the gambling activity, according to Chief Executive of Mortgage Debt Advisory Firm Negotiate Trevor Grant, is that most people coming looking for a loan, should be tightening their extraneous spending. Gambling, says Grant, is considered to be a red flag that the applicant may not have self control.

The banking industry isn’t just looking at new mortgages either.  Lenders are being especially hard on those looking to refinance or restructure their loans.  Lenders view refinancing as a sign the borrow is having trouble paying and managing their finances and online gambling expenses are then being viewed as a poor allocation of the borrows money.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION