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When I was a realtor I could take "John Smith's" SS number and a couple other pieces of information and a loan officer could give me a good guess within a few minutes of what kind of loan "John Smith" could get.
While I have never put myself into a position of knowing a client's SS#, a lender can quickly predict, with reasonable certainty, whether an applicant will qualify for a loan and type of loan, subject to income/ savings verification and appraisal.
While I have never put myself into a position of knowing a client's SS#, a lender can quickly predict, with reasonable certainty, whether an applicant will qualify for a loan and type of loan, subject to income/ savings verification and appraisal.
I would simply have the client fill out a loan application form supplied by the mortgage broker. I was just the delivery boy.
Thread fail OP. Just because someone is high income doesn't mean a thing. They could spend ever dime they get and have nothing in the bank and some will even have tons of debt too. Both of which will get them disqualified for a mortgage.
Notice there is no mention of credit scores in the article. It would have been a stronger argument if they would have given that information showing a strong credit history, assets, the required emergency fund, employment record.
The article is meant for people like you OP who will bite at anything that helps you feel victimized.
OP's title --> Why Do Poor Whites Get Loans Over Wealthy Blacks?
The article says "upper-income blacks" OP. So you still don't know the difference between wealthy and upper income? Wow, some people's kids will never get it.
Why do 70% of Black Athletes who make more then 2 million per year playing sports go bankrupt within five years after their careers are over? And almost 100% of white athletes grow their wealth even more then when they were a pro-athlete.
Credit scores when calculated know no race, color, age etc, etc. It's based on an automatic computed system. Credit scores trump all when lenders calculate lending potential. Blacks who are rich, poor, or middle class basically do not have higher credit scores.
Some theories on this? So as not to make this a race issue, well start with the far end of the spectrum. Asians have been found to be those who plan and think ahead the most for all races of people. Their life decisions are based on, "where will I be and what will I need tomorrow." Whites fall behind them, but only by a little in this category. And blacks, tend to think and plan more in the immediate moment. I am not implying one is, or might be better then the other, there is a place for all reasoning in the world. But this is how scientific psychological studies have revealed we think.
Credit systems setup in the USA, are built around and for people who plan for a rainy day and for their future.
The article did mention one person's credit rating.
From the article:
Quote:
But in some neighborhoods, home lending has effectively been turned off.
Fred Steed lives in one. In 2008, lenders denied nearly 80 percent of the loans in his census tract along West Third Street, which is 99 percent minority.
In August, it happened to Steed. Although he is well into the upper-income level, he was turned down for a $35,000 refinance loan with Fifth Third Bank.
“I was very upset about it,” said Steed, director of community health for the Montgomery County health district. “I’ve had a relationship with Fifth Third ever since they’ve been here. I’m gainfully employed. I’ve got a credit rating of 820.
“So if they treat me like this, God only can have sympathy for others who really need this help.”
When they do seek credit, black and Hispanic business owners are less likely to be approved than whites, even after controlling for characteristics like credit score or the type of business.
The differences persist for years after companies are founded.These findings, from a new research paper commissioned by the Small Business Administration’s Office of Advocacy, add to the growing body of evidence that the playing field for entrepreneurs is tilted depending on the color of their skin...
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