These people NEVER mention defaut rates though.
FACT - If "miniorities" were being discriminated against in getting mortgages, they would have a lower default rate than whites.
FACT - "Minorities" have a much higher default rate than whites, indicating that whites are being discriminated against.
Why??? because they cant afford the mortgage!!!!!!!! that’s why!
Because they’re black? Or are they being treated like white people with poor credit or low income?
Oh no, here we go again. Ignoring lending guidelines and prudent lending practices leads to more mortgage defaults. The real test in qualifying for a mortgage is NOT race but the ability to pay it back.
We’ve had a ride on this Merry-Go-Round before.
It ends up with the government forcing lenders to give loans to people who have no way of paying them back.
How many billions in bad loans did taxpayers get stuck paying off last time?
There are lies, damned lies, and statistics.
If there is a disparity in approvals it MUST be due to racism. Credit ratings, income vs monthly payments and other factors determine if you get approved. I’m surprized Zillow jumped on the social justice/racism bandwagon. They should know better.
This is how the first housing bubble occurred...the bankers got shaken down for being ‘racist’, then had to fork over billions, the the fog a mirror loans were made not turning anyone away, for fear of lawsuits and being called racist...here we go again...the era of more free stuff will cycle back again.
That’s funny. Part of the housing collapse was banks lending on multiple homes to the same minority person. One gal in Sacramento lamented she bought 5 houses in a few months’ time, but couldn’t find renters at the price she wanted to charge for rent. So she walked on all five. Then you have those who were sold homes in beautiful developments by crooked REAs, then didn’t pay a dime in mortage, but tore appliances and wiring out of the walls before they vacated a year or so down the road (with a new assumed identity). Several books could be written on the abuses and scandals of the California housing market that crushed people’s equity for years, the majority being minorities and their crooked minority REAs and mortgage brokers who lent to anyone breathing. The REAs didn’t care because they got their commission and the mortgage brokers didn’t care because they’d bundle and sell the mortgages as fast as a jackrabbit.
Uh, they assumed Obama would pay their mortgage so they applied in spite of bad credit?
I did the same thing today - no other radio stations on the car radio.
NPR was still asking for money and they were thanking individuals and companies. At no time did they thank the American tax payer for the money they receive.
Do they use an algorithm? I bet they do.
https://en.wikipedia.org/wiki/Subprime_mortgage_crisis
Not this again. The reporter is incompetent. So are his editors. The relevant statistic is default rates.
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.
I wonder if the author thinks it may have anything to do with financial status/job history/prior loan history, etc.....