Could this be DejaVu

H

Horn6721

Hook'em
all over again?
'African-Americans squeezed out of the housing market"

More African-Americans are being squeezed out of the housing market.

Not only are they less likely to apply for a mortgage than any other ethnic group, but African-Americans are also 2.4 times more likely to get denied a mortgage than Whites, a recent study conducted by Zillow and the National Urban League found.
The Link
 
This was the justification for the establishment and the rapid expansion of the sub-prime mortgage market that led to the 2008 financial crisis. Of course anyone who tried to sound the alarm during that period was shouted down by the usual suspects indiscriminately playing the race card.

So, do we really want to go down this same path again? Really?
 
mojo
Even the most ardent socialist wouldn't want to replay what went on then
would they?
and to charges of racism
Why would a financial institution who wants to make money by loaning money and getting interest care what was the color the skin of the person paying them back with
interest>

Interest paid back is color blind
 
Yes credit scores are so racist. I think the FICO factors are +75 for asian, +50 for white, -75 for hispanic and -150 for black.
 
That would be hard to believe that something like that could still be going on. maybe years ago but now?
can you provide a link?
 
fig7_1.gif


Leads to:


income96.gif


Which leads to low home ownership and poor credit scores.
 
I don't think low income equals low credit score. I think it leads to not being able to establish credit which leads to a low credit score. I know it is semantics but I think someone with low income can build a good credit score if done properly.
 
Of course a low income person or family can have good credit. There are only 2 keys to it: 1) Don't over-borrow; 2) Pay back what you do borrow on time, every time.
 
Its certainly possible, but we are dealing with millions of people in this context. Your average person that has a lesser education and a lesser salary will probably have a lesser credit score. Also, credit scores arent the only thing looked at on a mortgage applications. Job history, income, assets, and debt to income ratio are all looked at. Its harder on average to do as well as upper income peers on a lesser salary in these areas. Im not suggesting that the government step in and do anything. Im suggesting that the real problem is the lack of education in certain communities and that addressing anything else is just treating the symptoms.
 
LT, are those charts same time frame? Would be interesting, no I am not willing to look up myself, to see what, if any, difference a decade has made in those stats.
Thanks for sharing, and I think it is always about education, or the lack thereof. Now that I have grandkids I find it very frustrating when my own children will complain about how much they pour on their kids in school, etc.
I constantly am telling them that they are like sponges when young. It is practically impossible to overload children, the parents, well that is another story.
 
Honestly what happened to people using common sense?
Does every issue( some of which are not spending more than you make, not keep having kids you can't afford, not always super sizing) need a gov't program to teach?

and the other question regarding bad credit and getting loans; if based on historical numbers people with too low credit scores default on loans at a high rate should the gov't guarantee those loans and then have the taxpayer pay it back?
 
The answers to your questions are both no, but that is so politically incorrect in this day of equal everything.
brickwall.gif
 
I have no problems with black people ... or people of any color ... being denied credit if they have bad credit. Black person walks into a bank, real estate agency and can't get the time of day when they have good credit scores that no one takes the time to look into ... big problem where government should play a role.

By the way, it was banks disregarding guidelines, not feds forcing them to disregard guidelines, that led to the housing crisis. That and facilitators who packed a bunch of bad loans into magically highly rated debt packages sold to unsuspecting buyers who trusted the packagers and debt rating agencies, was the problem. I think debt buyers have their eyes wide open these days. They know now that if they don't pay attention, Goldman Sachs s and every other investment bank will buttfk them and buttfk their mother if they get a chance.
 
Sange beat me to it
There was gov't pressure for over 10 years to make loans a responsible institution would not/ should not make.
look it up and then Look what happened

And even now the BO admin has been putting pressure on institutions to make loans to people with " weak" credit by having lenders use taxpayer backed loans.
Guess who will be on the hook for these loans.
Did they learn nothing


and NO no one is saying risky loans were the entire problem but no one should say risky loans are NOT a problem
 
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