Blacks And Latinos Denied Mortgages At Rates Double Whites

Link

Disparities were exceptionally pronounced in 61 cities across the nation, including three in North Carolina. That was true even when controlling for applicants' income, loan amount and neighborhood. The findings come after a year-long study of millions of Home Mortgage Disclosure Act records analyzed by WUNC, The Center for Investigative Reporting's Reveal Show, and the Associated Press.

So I'm listening to NPR and they are talking about this, specifically how the Community Reinvestment Act has been a joke for Decades, not really allowing residents, mainly Black and Hispanic to get loans in the areas the CRA was designed to help.

Pretty messed up, especially since 99.9% of banks get a satisfactory record with the CRA.

Even when you factor in apples to apples comparison, there is a racially backed component to the results.

Race bait? Sounds like it. What do you think this thread will accomplish other than getting people arguing over race, as if we don't have enough of that already?

a reply to: pavil

From your link.

The latest figures from the U.S. Census Bureau show the median net worth for an African-American family is now $9,000, compared with $132,000 for a white family. Latino families did not fare much better at $12,000.

That could be the reason why.

Junk study is junk.

They excluded the single biggest factor in getting a loan from any financial institution.

Funny that.

This is the double edged sword of the race game.

You can't go on television every day and complain that you never get hired, you don't get paid as much, there are no jobs in your neighborhood, you are the first to get laid off, etc, then complain when banks don't want to extend thirty years of credit to you.

If you constantly complain on social media how there are no jobs for minorities above minimum wage, don't be surprised when you, a minority, get pulled over driving a $90,000 Jaguar. You just told the police you can't afford that car. Duh...

originally posted by: 3daysgone
a reply to: pavil

From your link.

The latest figures from the U.S. Census Bureau show the median net worth for an African-American family is now $9,000, compared with $132,000 for a white family. Latino families did not fare much better at $12,000.

That could be the reason why.

Yup- that would do it... can't get a loan if you don't have good credit- and you're not going to have good credit trying to live in this country taking home 12 grand.

The "study" took data with an obvious outcome and made it about race.
that, by definition, is racist... right?

I mean, if you're going to title the post, it should be something like "Poor people denied mortgages more frequently" - and then nobody would read it, because they'd see the title and say "well, duh"

Even when you factor in apples to apples comparison, there is a racially backed component to the results.

Anyone tell me what year loan forms start including a box marked race?

ETA:

Just checked my credit score.

Wasn't there either.

Oh dear.

a reply to: neo96

Yeah when I apply for a loan, the things I'm asked are my income, employment status, and why I need the money. Now this may be different when actually walking in to a bank, but I've never had to do that for a home or car loan so I can't speak to that. Maybe they're looking up my LinkedIn to make sure I'm a white guy...

Try being successful with a MJ conviction.

Start your own biz like I did, or stfu and leave.

my brother is white and can't get a mortgage for a house with less than a 20% down payment because he runs his own construction business as a sub contractor and has a 1099.

a reply to: toysforadults

Everyone pays 20%, unless it's some special program like fha or whatever.

It's a huge problem with new mortgages.

From what I understand banks don't loan any money for mortgages.

They need 20% in the bank, the rest comes from gov. That 20% comes from your dwnpmnt.

Your bro should check out the Homepath program.

originally posted by: Mandroid7
Start your own biz like I did, or stfu and leave.

There are always opportunities for people who devote their energy to buckling down, rather than complaining. All the while keeping in mind that building financial stability and security takes a whole lot of time, and often more than one person's lifetime.

a reply to: Mandroid7

homepath program huh??

they are making the fact that he works for himself a problem as well, they keep telling him that he needs paycheck stubs and in construction it doesn't work like that

originally posted by: 3NL1GHT3N3D1
Race bait? Sounds like it. What do you think this thread will accomplish other than getting people arguing over race, as if we don't have enough of that already?

Well maybe we could just fix such inequalities? It's pretty messed up that it comes down to the color of your skin determines anything in our country?

The intent of this law isn't being followed. I'm conservative/GOP, but that doesn't mean I'm not for fairness.

originally posted by: toysforadults
they are making the fact that he works for himself a problem as well, they keep telling him that he needs paycheck stubs and in construction it doesn't work like that

He needs to incorporate and then become a paid employee of his company.

He should do it anyway to avoid potential personal legal liability problems with injury or property damage.

originally posted by: pavil
Link

Disparities were exceptionally pronounced in 61 cities across the nation, including three in North Carolina. That was true even when controlling for applicants' income, loan amount and neighborhood. The findings come after a year-long study of millions of Home Mortgage Disclosure Act records analyzed by WUNC, The Center for Investigative Reporting's Reveal Show, and the Associated Press.

So I'm listening to NPR and they are talking about this, specifically how the Community Reinvestment Act has been a joke for Decades, not really allowing residents, mainly Black and Hispanic to get loans in the areas the CRA was designed to help.

Pretty messed up, especially since 99.9% of banks get a satisfactory record with the CRA.

Even when you factor in apples to apples comparison, there is a racially backed component to the results.

Complete and utter bovine feces...

I work in mortgages and have for the pass 15 years. There is ZERO, ZIP, NADA, racial discrimination in mortgages. Blacks on average have lower FICO scores and fewer assets which is why, not that there is any actual discrimination occurring.

Here is a good mortgage industry video/blog debunking the OP that explains how any disparate impact that actually occurs is because of Fannie policies that ALL banks have to follow when it comes to getting a conventional mortgage.

This just in:

People with bad credit don't get loans.

Funny how my bank didn't discriminate against me when I bought my house. But I'm not financially irresponsible either.

Not surprised.

The system works against minorities.

This reveals a different issue than the one in the study. There is no big surprise that less well-off people, with lower incomes are less likely to get mortgages. If anything the study shows bias towards minorities.

The real question is WHY is the income and creditworthiness disparity so large?