Posted on 02/16/2018 8:19:32 AM PST by SeekAndFind
The PBS NewsHour, which I love for telling me what to think and when to think it, had a piece yesterday about a black lesbian woman who claimed she couldn't get a mortgage because racist banks wouldn't lend to a black person. When her Japanese lesbian partner applied for a loan, however, she quickly got it.
Fifty years after the federal Fair Housing Act banned racial discrimination in lending, African Americans and Latinos continue to be routinely denied conventional mortgage loans at rates far higher than their white counterparts.
It found a pattern of troubling denials for people of color across the country, including in major metropolitan areas such as Atlanta, Detroit, Philadelphia, St. Louis and San Antonio. African Americans faced the most resistance in Southern cities – Mobile, Alabama; Greenville, North Carolina; and Gainesville, Florida – and Latinos in Iowa City, Iowa.
"I had a fair amount of savings and still had so much trouble just left and right," said Rachelle Faroul, a 33-year-old black woman who was rejected twice by lenders when she tried to buy a brick row house close to Malcolm X Park in Philadelphia, where Reveal found African Americans were 2.7 times as likely as whites to be denied a conventional mortgage.
But that still wasn't enough. When she tried again a year later, this time at Santander Bank, a Spanish firm with U.S. headquarters in Boston, the process dragged on for months. Her loan officer kept asking for new information, she said – or sometimes the same information again.
By this time, Faroul had been trying to get a mortgage for over a year, and the process itself was damaging her credit
(Excerpt) Read more at americanthinker.com ...
Total BS. Tell us their credit scores and that’ll tell the story. *(she’ll blame her low score on being black)
If you have a friend in the mortgage business, ask them if they will turn down a potential closing commission because the applicant was black. Utterly retarded.
There is a very simple way to determine if banks discriminate against blacks: the default rate.
If blacks are being discriminated against, they would have a lower default rate than everybody else.
But they don’t.
They have a higher default rate than everybody else, which means banks are practicing affirmative action when it comes to blacks.
Do credit reports identify a person’s race/ethnicity/sex/gender?
I checked mine a while back and don’t recall seeing any of that information.
“...African Americans were 2.7 times as likely as whites to be denied a conventional mortgage....”
*****************************************************
I wonder if it could possibly be because of much poorer credit scores, more instances of unpaid rent, unpaid utility bills, more bad debt, more bankruptcies, etc., etc.
Banks see two colors. Green and black. Everything is green. And if there is some black in the application, they give it a 135% effort to make the loan out of fear.
If the agent rejects a white person’s loan request, it’s over. If the same agent rejects a black applicant, it goes to a higher level, and then to yet another level in most companies.
This was just propaganda.
“They have a higher default rate than everybody else, which means banks are practicing affirmative action when it comes to blacks.”
Critical thinking skills like yours are racist.
What I would like to know is:
1. What is the default rate for illegals.
2. Why in the hell do illegals get access to the US banking system.
(actually, I do know the answer to #2. question is rhetorical)
If banks are approving other applicants with the same credit profile, you might have a case.
I highly doubt it though.
probably 90% or more of the transactions, they have no idea what color they are. I’m in the business where I look at scores daily. A while back, they were pushing the same BS, the report showed that a black people with 60,000 income averaged 50 points less than whites with 35000 income as proof. Credit scores can be a little flaky, but they don’t discriminate. It’s the same thing that hurts black people in everything else, the disintegration of the family. The ones that had an intact family, a father and mother to guide them have great credit as a rule. Same goes for all other races.
I am a white male. I recently bought a $57;000 house for a primary residence. My income is in the very high 5 figures and my credit rating is in the mid 700s. It took weeks and weeks to buy this little cheap house. The bastards made me produce an escrow statement for another house I own for some ridiculous reason.I could have gone to a car dealership and walked out with a $57,000 car in an hour. The point is that mortgage financing is so over regulated that there’s no way her rejection wasn’t legitimate.
Mortgages are dependent upon your credit your ability to pay it off - not skin color.
Of course, if your ability to pay off the loan is based on a temporary job, or shady employers, i.e. selling drugs, running numbers, prostitution; the application will be turned down because they are known as short term occupations, not the color of your skin.
One of the articles used as a source has lots of (dis)information in it, such as:
“the disparity can be explained by factors the industry has fought to keep hidden, including the prospective borrowers’ credit history and overall debt-to-income ratio. They singled out the three-digit credit score – which banks use to determine whether a borrower is likely to repay a loan – as especially important in lending decisions.”
“When Faroul applied for a loan in April 2016, she thought she was an ideal candidate. She holds a degree from Northwestern University, had a good credit score and estimates she was making $60,000 a year while teaching computer programming as a contractor for Rutgers University....Faroul’s contract income wasn’t consistent enough, she said. So Faroul got a full-time job at the University of Pennsylvania managing a million-dollar grant.”
“By this time, Faroul had been trying to get a mortgage for over a year, and the process itself was damaging her credit. Every time a lender pulls a hard inquiry on a credit report, the score goes down to guard against people who are trying to take on a lot of debt.
“They had done so many hard pulls that my credit score had dropped to 635,” she said.
Then, an unpaid $284 electric bill appeared on Faroul’s credit report. It was for an apartment she didn’t live in anymore. She paid the bill right away, but the bank said it couldn’t move forward.”
“For Faroul, things suddenly took a turn for the better after her partner, Hanako Franz, agreed to sign on to her loan application. At the time, Franz – who is half white, half Japanese – was working part time for a grocery store. Her most recent pay stub showed she was making $144.65 every two weeks. Faroul was paying for her health insurance.
The loan officer had “completely stopped answering Rachelle’s phone calls, just ignored all of them,” said Franz, 32. “And then I called, and he answered almost immediately. And is so friendly.”
Read more at RevealNews:
https://www.revealnews.org/article/for-people-of-color-banks-are-shutting-the-door-to-homeownership/
I feel your pain! It took me 10 months and two attempts to get my home refinanced in 2016. I was looking over the paperwork yesterday and the number of letters and documents that I needed to provide is just unbelievable. The regulators have change the banking business so that no business sense is allowed.
“Her loan officer kept asking for new information, she said – or sometimes the same information again.”
That’s what lenders do...they’ll worry you the death with that garbage. No racial discriminating there.
This sad story just never goes away - forty years ago it was supposedly demonstrated in a Boston Fed study that looked at comparative mortgage approval rates for blacks and non-blacks and found that blacks were turned down more frequently on a percentage basis than non-blacks - this supposedly demonstrated that blacks were in fact being discriminated against by banks (and indeed was one of the early factors in the push to give mortgages to less credit-worthy people that eventually led to the great economic collapse of 2008) - but then some really smart researchers did a follow-up to the Fed study - they reasoned that if blacks were unfairly being denied loans, those who did get them were more credit-worthy than normal and would have lower default rates than the non-blacks who received them - what they found was that the default rates of the two groups were statistically the same, indicating that the loans were being approved on the basis of sound credit-rating factors and not race - but who in big government wants to hear that.....
Loan Officer: Now, let me get this straight, Mr., ..uh.. Mr. White. You’d like to borrow $50,000 from our bank, but you have no collateral, you have no credit. You don’t even have any I.D. Is that correct?
Eddie Murphy: That’s right.
Loan Officer: Mr. White, I’m sorry. This is not a charity. This is a business...
White Loan Officer: Uh, Harry, why don’t you, uh, take your break now? I’ll take care of.. uh.. Mr. White.
Loan Officer: Well.. okay. Thanks, Bob. [ exits ]
White Loan Officer: [ laughs, then sits ] That was a close one, wasn’t it?
Eddie Murphy: It certainly was.
White Loan Officer: We don’t have to bother with these formalities, do we, Mr. White? Huh?
Eddie Murphy: What a silly Negro!
White Loan Officer: Just take what you want, Mr. White. Pay us back anytime. Or don’t. We don’t care.
Eddie Murphy: Tell me, do you know of any other banks like this in this area?
Right. Serious details missing in this race baiting article.
discrimination prevents loan foreclosure
discrimination is the duty of a loan officer
LOL, What movie was that?
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