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Go back to the old days...a decent down payment (not financed by another loan), a solid credit score and reasonable debt to income ratio. Yet even when applied equally, that was somehow "racist" because some minorities didn't qualify. Then DC gets involved and mandates loans to people that don't have a reasonable chance of paying them.
Foreclosures and housing "bubbles" were largely unheard of before the government started mandating (and subsidizing) lending for home ownership for everyone that wanted one. Eliminate HUD, Fannie and Freddie and let the banks gamble with their own investor's money.
Go back to the old days...a decent down payment (not financed by another loan), a solid credit score and reasonable debt to income ratio. Yet even when applied equally, that was somehow "racist" because some minorities didn't qualify. Then DC gets involved and mandates loans to people that don't have a reasonable chance of paying them.
Foreclosures and housing "bubbles" were largely unheard of before the government started mandating (and subsidizing) lending for home ownership for everyone that wanted one. Eliminate HUD, Fannie and Freddie and let the banks gamble with their own investor's money.
There was no mandate or direction to take people with bad credit, that was the bank's own doing. No one directed them to give out bad loans, 0% down, no earnings checks, they actively sought out people even though they were a risk. They thought they could recover their money as long as housing prices increased, no problem.
I agree. But you're arguing two different issues here.
1) Banks took advantage of buyers
2) Buyers have a responsibility to walk away from terms they don't agree with
If the government has to tell a person that he/she was screwed by the bank, then that person was not smart enough to be buying a house in the first place. Do you see the difference?
Interesting that none of your comments have anything to say about the fact that these banks had business practices that were totally unethical.
I guess as a conservative you are fine with corporations f***king over people.
By the way the government in this case was enforcing the law in regards to prosecuting a business practice that was illegal.
When it isn't disclosed that there is a secret rate being offered to while applicants, one agrees to the terms because they are the only terms which you have been led to believe are available. Due diligence is such cases would require sending in a white friend with comparable fiances to see if discrimination fraud existed. We try to eliminate the need for that level of investigatory due diligence by simply making it illegal to offer one ground based upon race, ethnicity or national origin more favorable agreements than another race, ethnicity of persons of another national origin.
I can't believe that I took the time to explain what should be so readily apparent.
Oh come on -- why wouldn't minorities read the same information that whites read? Or they could have asked around, found out that white people were having to save up money for a good down-payment and found out from their white friends that they were getting 30 year fixed rate mortgages with those big down-payments.
You for example, can you honestly claim you never knew about 30 year fixed mortgages and other conventional mortgages?
Oh come on -- why wouldn't minorities read the same information that whites read? Or they could have asked around, found out that white people were having to save up money for a good down-payment and found out from their white friends that they were getting 30 year fixed rate mortgages with those big down-payments.
You for example, can you honestly claim you never knew about 30 year fixed mortgages and other conventional mortgages?
What part of the exact same don't you grasp?? Those with the EXACT SAME CRITERIA, such as DTI ratios, down payment, credit scores, etc were offered different things if they were white or black.
Go back to the old days...a decent down payment (not financed by another loan), a solid credit score and reasonable debt to income ratio. Yet even when applied equally, that was somehow "racist" because some minorities didn't qualify. Then DC gets involved and mandates loans to people that don't have a reasonable chance of paying them.
Foreclosures and housing "bubbles" were largely unheard of before the government started mandating (and subsidizing) lending for home ownership for everyone that wanted one. Eliminate HUD, Fannie and Freddie and let the banks gamble with their own investor's money.
The real crazy loan programs were not mandated by the government. The stated income, stated asset, no income check loans weren't and in large part were the non-government backed, non Fannie, non-Freddie loans. The crazy neg am option ARM/ MTA loans were not government loans. They weren't Fannie, Freddie, HUD, they were unregulated absolutely crazy, non governmental, non-mandated bank loans which really took off in 2003-2004 and became a huge part of the marketplace leading into the collapse.
Also, how is enforcing the laws against discrimination a shakedown?? BTW, there will be no appeal, this was a settlement, Wells agreed to pay and admitted wrong doing by their brokers.
Oh come on -- why wouldn't minorities read the same information that whites read? Or they could have asked around, found out that white people were having to save up money for a good down-payment and found out from their white friends that they were getting 30 year fixed rate mortgages with those big down-payments.
You for example, can you honestly claim you never knew about 30 year fixed mortgages and other conventional mortgages?
An applicant walks into a bank with a newspaper add indicating a 30 year rate, and they actually expect to get that rate?? So the bank told them they were subprime material, what was their option, wait outside the door for white loan applicants to ask for their rates, please.
How do you know that white people were putting up big downpayments vs minorities to get the better rate, the article indicates the minority profile was similar. Maybe you have better info than the investigators. Obviously Wells Fargo didn't argue the case in court for one of the largest historical settlements, does that tell you anything
What part of the exact same don't you grasp?? Those with the EXACT SAME CRITERIA, such as DTI ratios, down payment, credit scores, etc were offered different things if they were white or black.
For example, I knew about ARMS but I was completely not interested as I wanted a fixed rate only.
Are you really saying that someone who earned $100k a year and had good credit rating and savings for a deposit would not have been given a conventional loan?
I would say you are incorrect if so because I know both black and hispanic minorities that have the same kinds of mortgages as do whites.
An applicant walks into a bank with a newspaper add indicating a 30 year rate, and they actually expect to get that rate?? So the bank told them they were subprime material, what was their option, wait outside the door for white loan applicants to ask for their rates, please.
How do you know that white people were putting up big downpayments vs minorities to get the better rate, the article indicates the minority profile was similar. Maybe you have better info than the investigators. Obviously Wells Fargo didn't argue the case in court for one of the largest historical settlements, does that tell you anything
No -- but like everyone else, read up, ask around, ask co-workers who are buying a house about their rates and mortgage company. If you're told you're subprime material, then you find another lender. Or find out what makes you subprime, if it's your credit rating, then work on it. Or make sure your credit rating is decent before applying for any loan. Find out what's there and write the letters of explanation.
And if you really a subprime borrower then realize what that means. Maybe decide to buy less house, even a mobile home instead.
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