Lender Policy Seems to Reward Dishonesty

I think it’s terrific that because of recent improvements in the methods of gauging probability of loan default, many lenders now offer low or no down payment loans to worthy borrowers of low to moderate income who lack credit histories.

But I read something in Kenneth Harney’s article (“‘Loans Target Moderate, Lower Incomes,” May 2) on the subject that both saddened and annoyed me.

Harney states that a lender who offers one such loan product called “credit flex” takes into account ‘undocumented” income when evaluating borrowers.

Doesn’t it seem a tad improper for the Bank of America to consider illegal earnings in its credit evaluations? Doesn’t this practice serve to legitimize and encourage an illegitimate means of earning income?

Another disappointing sign of our immoral times, I guess. I find it irritating that some borrowers are rewarded while paying income tax on only a portion of their earnings when most of us obey the law by paying taxes on all of our earnings.

VICKI PARIS GOODMAN

Long Beach