Posted on 05/05/2018 1:24:31 PM PDT by E. Pluribus Unum
>>Ah, remember CRA, the Community Reinvestment Act? <<
Yes, millions and millions of dollars and now you can see the liquor stores on every corner in the inner cities are replaced by big chain supermarkets just a few blocks apart and strip malls with dive bars, pawn shops and tattoo parlors are a thing of the past!
Oh, wait...
5% of the population, black males, commits 90% of those crimes committed by blacks. You think banks and lending companies turn down blacks because they just don’t want their money or because they are such a risk? Fortunately, the current administration is relatively tone deaf to these sorts of bogus claims, I hope.
Do they use an algorithm? I bet they do.
LOL! I don’t know about others, but where my brother works (for a small tech company), if a name shows up looking like the kid is using Whole Language Spelling, they just toss it out - they don’t need the trouble, and they’re small enough to not be bothered by the race hustlers.
Same for anyone who shows up with tattoos, regardless of skin color.
Back in the time when even Liberals and Conservatives could laugh at the same things.
https://en.wikipedia.org/wiki/Subprime_mortgage_crisis
https://www.youtube.com/watch?v=mzJmTCYmo9g
Here is a comedy bit by “Bird and Fortune” regarding the subprime banking thing - back BEFORE it fell.
The one part I liked was something like
“So take the High Gold Exceptional Mortgage Strategy Investment Fund.”
“Oh - is that a good fund?”
“Oh it’s a very good fund! It has the word “high” in it - that’s good. “Gold” - another good word, and of course “Exceptional”! And strategy sounds like it is well-thought out.”
“So this is a good fund to invest in?”
“I have no idea - but the name is sure great!”
Not this again. The reporter is incompetent. So are his editors. The relevant statistic is default rates.
That and credit score.
Credit scores predict default rates. If mortgage lenders are treating black, white and Hispanic applicants equally, in a color-blind manner, the default rates for all three groups should be comparable.
I am absolutely positive the rejections have NOTHING to do with skin color. This is a non-story.
OK I’m going to tell you why. It’s going to get me called a racist which I’m not as I have worked tirelessly to get black clients approved for loans during my entire career. I say this as a former underwriter of many years and a 17 year mortgage broker. Blacks have a high percentage of bad credit. Much higher than whites. It is what it is. Hispanics tend to have trouble verifying assets as they use mattress money for the down payment much of the time. It’s just a cultural thing.
There are many things that can screw up a credit score and having a high credit score is very important.
Some people don’t realize that their credit score effects what rate you pay for insurance for home, car, even health insurance.
My point was that I wondered if the data on rejection rates could be trusted. I suspect that my case was not even recorded, although it was in essence a rejection.
Since lenders are judged on rejection rates, why would they provide accurate evidence against themselves if they could avoid it?
I wonder if the author thinks it may have anything to do with financial status/job history/prior loan history, etc.....
Anytime a bank checks credit it gets recorded because the credit reporting agency is separate from everything else.
Every time your credit gets checked your score goes down.
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