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It appears that this thread somehow has morphed from "consumers shall have the ability to download their banking records in a standardized format so that the consumer can then provide this information when applying for a loan" to a claim that we're all headed for another real estate melt-down if people bypass the credit reporting industry.
Might I remind you all that it was the credit reporting industry that (along with others) enabled NINJA loans that partially led to the the 2008 Great Recession in the first place?
It appears that this thread somehow has morphed from "consumers shall have the ability to download their banking records in a standardized format so that the consumer can then provide this information when applying for a loan" to a claim that we're all headed for another real estate melt-down if people bypass the credit reporting industry.
Might I remind you all that it was the credit reporting industry that (along with others) enabled NINJA loans that partially led to the the 2008 Great Recession in the first place?
IIRC, there have also been times when large banks have blocked the ability to or made it really hard for customers to import data sets into third party budgeting and planning sites like mint. A lot of banks wanted to force you to have all products with them in order to generate a single comprehensive financial dashboard that displayed investments, assets, and liabilities in one place.
So yeah, somewhat friendlier for consumers because it helps make it easier to display financial products from multiple companies in one place.
IIRC, there have also been times when large banks have blocked the ability to or made it really hard for customers to import data sets into third party budgeting and planning sites like mint. A lot of banks wanted to force you to have all products with them in order to generate a single comprehensive financial dashboard that displayed investments, assets, and liabilities in one place.
So yeah, somewhat friendlier for consumers because it helps make it easier to display financial products from multiple companies in one place.
This EO will not change that. It's for "switching banks".
It's for not needing to depend on credit reports when applying for loans.
Show me where that says that in the EO ...
I posted a link to the EO fact sheet from whitehouse.gov earlier.
Think about what you just posted. Banks will do hard credit checks if you want a loan. They will not take your paperwork as "fact". None of them would be stupid enough to rely on paperwork YOU bring in.
A key part of President Joe Biden’s executive order this month could ultimately make it easier for Americans to qualify for loans, and on more favorable terms, using an alternative to credit score data.
Or perhaps, by the second paragraph:
Quote:
The order — which includes broad reforms for tech, health care, and labor — also directs the Consumer Financial Protection Bureau to issue rules that would allow bank customers to download their banking data and take it with them. That would allow consumers to prove their creditworthiness to lenders outside the traditional credit reporting and scoring system.
Excessive consolidation raises costs for consumers, restricts credit for small businesses, and harms low-income communities. Branch closures can reduce the amount of small business lending by about 10% and leads to higher interest rates. Even where a customer has multiple options, it is hard to switch banks partly because customers cannot easily take their financial transaction history data to a new bank. That increases the cost of the new bank extending you credit.
This is about an end run around the credit score system in order to enslave more Americans to bank companies through loans.
The order — which includes broad reforms for tech, health care, and labor — also directs the Consumer Financial Protection Bureau to issue rules that would allow bank customers to download their banking data and take it with them. That would allow consumers to prove their creditworthiness to lenders outside the traditional credit reporting and scoring system.
See - Democrats know how to take regulators out of the way when the want things to happen.
You know what's going to happen in the end right? We have been through this before.
People, without any discipline, who have no business getting loans will get them and not be able to pay them back... and it will eventually blow up similar to the mortgage crisis in 2008.
They hate America.
Alternative credit scoring has been around for several years.
Consumer debt is about $15 Trillion including mortgage, auto loan, credit card and student loan debt.
The easier it is to access credit the more likely the masses will use it.
The average price for a new car this year is $41,263. It boggles my mind that consumers seem to have an insatiable demand for bells and whistles and safety features. I am so old school, I have no appreciation for power windows, steering, seats, trunk door lifts, etc. I don’t need an alert to tell me there is something X feet in front of me or that the car ahead of me has moved. That many now find it necessary to insure a lost key fob…..
So yeah, alternative credit criteria makes more credit available to consumers to acquire stuff which creates and sustains millions of jobs.
"cost of loan" is not qualifying for a loan. Those are fees and such.
And your bank data doesn't have that info.
Go..go look at your bank data for your car loan or mortgage. Is 'the cost" of those loans listed ?
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