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.
If banks are approving other applicants with the same credit profile, you might have a case.
I highly doubt it though.
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.
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/
“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?
discrimination prevents loan foreclosure
discrimination is the duty of a loan officer