Posted on 04/11/2014 7:19:24 AM PDT by TurboZamboni
Minority residents in the Twin Cities are much more likely than white people of similar incomes to be rejected for a mortgage, whether they’re buying a home or refinancing. If the home sits in a diverse or mainly nonwhite neighborhood, the application is also more likely to get the boot. Those are the findings of a new study from the University of Minnesota Law School suggesting that mortgage redlining remains alive and well in the Twin Cities. The report suggests that while banks may have justifiably tightened up credit standards, they have swung so far that they are cutting off credit not just to questionable borrowers but to people whose income would appear to qualify them for a loan. Myron Orfield, the study’s author and head of the law school’s Institute on Metropolitan Opportunity, said the findings surprised him, given the economy’s improvement and the scrutiny mortgage lending and foreclosure practices have received since the real estate collapse.
(Excerpt) Read more at startribune.com ...
Credit’s NOT only based on income. It’s also based on paying bills on time. I suspect this is liberal bullsh*t. Bank’s make their profit by ‘renting’ money. They’re not going to turn down profit unless they feel the risk it too high.
Of course, the theme of this is that some racial discrimination is in play. But it sounds like the fact is that banks are being more careful related to the applicants’ credit history and credit rating, which, of course, SHOULD be taken into account. Equal income levels do not make equal credit risks.
U of M?
Gimme a break.
I’d look at that “study” very, very closely.
Given the source, I’d say that 1) the research was shoddy, 2) the math was even shoddier, and 3) the results were predetermined. Law school, remember? Not exactly your prime source of good researchers.
Or could it be that minorities are much more in debt and have worse credit scores?
No, that’s racist.
“Redlining”: you won’t loan me money on MY terms.
“Predatory lending”: you loaned me money on YOUR terms.
Well said!
And with the advent of Big Data analysis tools, many are going beyond the FICO score when looking at lending. This article attempts to boil down a complex issue to income and skin color purely to push a political agenda.
CRA lending based on skin color to “get the numbers right” for proper political regulatory appearances was a factor in the 2007 crash.
This is the same bullsh*t that got the original bad credit bubble going 20 years ago. Some Communist academic puts out a phony study and then the Leftists jump on the bandwagon and start pressuring banks to drop lending standards so people with bad credit can get loans.
You hit the nail on the head. If my income is $50K, but I have failed to pay my bills in a timely manner, my credit rating will be abysmal. If I earn the same amount, but have always paid on time, my credit rating will be decent.
The authors of the study should be required to personally guarantee those loans they say should be written...
How long until we’re back to a mortgage for “anyone with a pulse” ?
Read the comments section at the source. Not a single reader finds this article credible.
I thought we learned this lesson a few years ago — that bad things happen when politicians and race hustlers make mortgage lending decisions. Idiots.
Sooner or later they will ban the very idea of having credit scores on grounds that it is “racist”.
Might there be some objective, colorblind standard that is behind a higher rejection rate? Yes.
But, to the racial bean counters it doesn’t matter. They want their numbers to be pretty, reality be damned. This is in large part what led to the speculation and fraud culminating in a real estate bubble from which we’re still recovering.
It would quite honestly have been cheaper and less disruptive to just give them all a house, but those houses would need to be maintained and would need to remain unencumbered by a note, in order to afford the opportunity for stability and wealth-building that owning a home has created historically.
Past behavior shows that this will not happen. But, the numbers wouldn’t be pretty, so it has to be racism.
That was the case back in the nineties as well. Didn't matter to Janet Reno and the justice department. They threatened banks with legal action if they didn't give minorities loans they weren't qualified for. That led to sub-prime mortgages and the financial debacle ten or more years later which Bill Clinton never gets blamed for. We're headed for that again under a new lib idiot, Obama.
Yes, here’s another area of life, in which we’re supposed to feel liberal angst, because someone is allegedly being discriminated against.
I get numb to this liberal whining after a while. Can’t speak for other people, but that was my reaction to this. Yet another liberal tirade about how life is unfair in some way, and that the victims are disproportionately minority group members.
Hats off to all of you on this thread. Two years ago the comments 'at the source' would have been timid... and frightened. We've changed that by speaking truth to lies.
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