| The facts of this case will speak for itself. Minorities, in particular blacks, have historically been denied, or if allowed always paid more for certian goods and services and the mortgage business is no different.
To the poster who implied that black loan officers are the ones responsible for charging higher rates and fees to black customers, that is simply an ignorant comment. |
|
| Above Posted By:
Dee
| Tue, 21 Aug 2007 12:00:25 EST |
| Some lenders are crooks, some people have bad credit some people want all the money they can get or more than they can afford and say get me the loan that will give me the most money and then they sign for the loan accepting the terms, spend the money and then cry I was screwed! they are correct they screwed themself! If you signed for the loan with out going somewhere else and checking with another lender or another loan officer its your fault. Sue yourself for your ignorance, you did it. |
|
| Above Posted By:
WD
| Fri, 17 Aug 2007 08:27:48 EST |
| you are on the right track keep moving forward it about time black,s starting following the money. what took so dam long?slavery&racism is all about money. |
|
| Above Posted By:
Wallace Cooke Jr.
| Tue, 14 Aug 2007 14:19:36 EST |
| I was an Investment Broker for 7 years and decided to go to the mortgage side, I was astonished by the lack of respect
and no fudicial concern about the loans being written, the AE,
LO, Mangers, first question is always how much do you want to make, and the process starts from there and then you figured out how to make it work. The entire industry from Wall Street on down had this mentality. I held on to mine. |
|
| Above Posted By:
Anonymous
| Thu, 9 Aug 2007 10:45:34 EST |
| Again, those of you whom are fortunate to not have been discriminated against just will never ever get it...People of any race know when they are being treated differently. Wake up everybody...racisim is alive and kicking in American and other countries if you don't believe it that's your opinion. Also to the person stating that black 90% of black people have bad credit is bull...you are a racist. Have you met every black person in the world....lol...not try walking in their shoes. |
|
| Above Posted By:
Eliane
| Wed, 8 Aug 2007 22:43:41 EST |
| READ THE REPORT ("Income is No Shield Against Racial Differences in Lending"). The point is that with GOOD INCOME AND CREDIT, "minorities are, in fact, receiving a disproportionately large amount of high-cost loans" AND that, "this study demonstrates that high-cost lending is disproportionately targeted to minorities, even middle- and upper-income minorities." This is not because minorities are lazy deadbeats, it's due to systematic bias. The difference is NOT income or credit, it's SKIN COLOR. |
|
| Above Posted By:
Douglas
| Thu, 2 Aug 2007 20:11:18 EST |
| and finally Racism....yep we have blacks rippin off blacks, whites doin whites, hispanics hittin their race... on and on.....Greed and blind trust.....or laziness. Terrible combo....NAACP how about going into High Schools and teaching "Life Finances 101" We dont need law suits we need financially savvy educated youth.... Why not co-sponsor that with these banks.....? Ah too easy yah I forgot if you fix the problem...who needs you guys? |
|
| Above Posted By:
Mortgage Adult
| Wed, 1 Aug 2007 23:35:32 EST |
| What is going to happen when say Countrywide announces they have a huge default problem.....as their Option Arms, begin to mature.....thank god the indexes have slowed this year their upward spiral....WaMU, World, BofA, IndyMac, and many more will join Countrywide this year in higher then expected losses from Option Arms now dont you think......? People since greed called the shots now regulation will be the answer... people will have to work for loans and home sales quit pointing fingers... |
|
| Above Posted By:
Mortgage Adult
| Wed, 1 Aug 2007 23:31:11 EST |
| Realtors with in house lenders.....bye bye. That gray area you all played in.....gone sooner then we thought......and folks look at that list of lenders.....there is only one who never originated an Option Arm....One who stayed away and saw this day coming....we havent even scratched the surface of the meltdown folks....have we? Well maybe the first chink in the armour has been the quiet deline of WaMu from powerhouse to losing $1 billion and laying off 10000 in 2005? |
|
| Above Posted By:
Mortgage Adult
| Wed, 1 Aug 2007 23:26:32 EST |
| Predatory Lending ? All loans have an intended audience or customer. If your DTI is too high, maybe you should have gone to your bank first and figured out with them or yourself on many websites " With my current finances what can I really afford? Am I ready to purchase?" Instead they go to an Open House get mixed up with a realtor, who wants a sale not a referral...and their " In House Lender"....or My buddy the broker. Folks the definition of a Real Estate transaction is Arms Length....period |
|
| Above Posted By:
Mortgage Adult
| Wed, 1 Aug 2007 23:21:56 EST |
| It amazes me how fired up people become when racism is discussed, it also amazes me how people cloud the real issue at hand. The issue is not the minorities with bad credit, THE ISSUE AT HAND IS THOSE WHO HAVE GOOD CREDIT AND SEEM TO GET HIGHER INTEREST RATES THAN WHITES. HELLO!!! STAY FOCUSED PEOPLE. |
|
| Above Posted By:
Kim
| Tue, 31 Jul 2007 19:47:25 EST |
| I wonder, what is the credit rating of the NAACP? - the rest of the story? Speaking of facts, unfortunalty blacks have a high loan default rate and are one of the largest contributing groups to the subpime foreclosure fallout. I suggest the NAACP could actually do some good if they would use their time educating blacks about maintaining good credit, building reserves, and living within a budget, a few habits everyone, regardless of race, needs to develop. Get a life, be happy, and help someone. |
|
| Above Posted By:
Travis
| Sun, 29 Jul 2007 01:24:42 EST |
| There will always be racists and unethical people in the world. I don't think that the government or the NAACP can do a thing about it. Now that we know there are racists and unethical people in the mortgage loan industry, we all should take responsibility for protecting ourselves. |
|
| Above Posted By:
Marcus
| Thu, 26 Jul 2007 15:41:06 EST |
| The fact is Racism is still alive and well in America, and Africans Americans experience it daily in all areas of life, I am a mortgage origintor in Mississippi and I have seen it up close and personal.yes we have lower credit scores but we make less money and do not receive the same opportunties to advance, in desperation a lot of us except less, White America refuses to acknowledge this, so African Americans should continue to bring it into the open. I salute the NAACP. |
|
| Above Posted By:
Zina
| Wed, 25 Jul 2007 07:11:08 EST |
| Of Course, the one result of this law suit that no one realizes will happen is that because of the lawsuit, lenders will tighten up loan products and undedrwriting guidelines so that loans for people who are not A paper candidtates (damaged credit, lower income, etc.) will have less or no ability to get a loan.
Rather than the lawsuit, educate the minority (and all borrowers) on finding the best deal and let them take responsibility to do so. "Caveat Emptor" applies for loans too.... |
|
| Above Posted By:
PurpleFlash
| Tue, 24 Jul 2007 14:34:48 EST |
| Countrywide has a system in place that id's the LO's that are charging 1 ethnicity higher rates than others. They use the Patriot Act info to determine the ethnicity and then track the total points charged and compare to average points charged. If they notice a pattern of excessive fees for 1 group that LO gets suspended from conducting business with them. If it happens again, they are out. If they do this for their wholesale i am sure they do the same for retail. Try again NAACP. |
|
| Above Posted By:
Sandra
| Tue, 24 Jul 2007 14:01:38 EST |
| Dwight continued - I strongly urge all mortgage brokers and retail loan officers to do their part in changing this situation by taking a long term perspective when building their businesses. Build relationships with and write good loans for your borrowers. Be a trusted advisor and you're businesses will grow, referrals will be plentiful. and you'll make more money than you ever dreamed. Rogue competitors business's will eventually dry up and they'll move on to scandalize some other industry. |
|
| Above Posted By:
Dwight
| Fri, 20 Jul 2007 22:41:38 EST |
| As a wholesale account executive for a major non-conforming lender I've seen brokers max out those fees to the rim over and over again. I've been inside over 100 broker shops where I live and you don't see a bunch of white people over charging Hispanics or African Americans. You see Hispanics over charging Hispanics and you see African Americans over charging African Americans and vise versa.
How can we sue the NAACP for wasting the tax payers' money?
|
|
| Above Posted By:
Anonymous
| Thu, 19 Jul 2007 21:24:00 EST |
| As long as the lender didn't allow the broker to charge over the state regulated Section 32 (A state specific lending practice that wouldn't allow a borrower to pay closing cost over a certain percentage - nfor example NM is 4.99% and AZ is 7.99% of the loan amount)...go to next post |
|
| Above Posted By:
Anonymous
| Thu, 19 Jul 2007 21:23:33 EST |
| It's the mortgage brokers that would charge the high rates to make their "Yield Spread" from the bank and the mortgage broker would charge points to the borrower too. So, it's essentially the mortgage broker giving their clients the high cost loans not the lender...go to the next post... |
|
| Above Posted By:
Anonymous
| Thu, 19 Jul 2007 21:22:48 EST |
| Thanks you so much Debby for your comments! I am so sick and tired of everyone playing the "race card". It is precisely those types of individuals who keep racism alive and well. If you'd simply just shut-up, own up to your own decisions in life, and stop telling us that the government OWES you something in life because your great-great-great-great grandfather was a slave, racism might, just might, settle down a bit. |
|
| Above Posted By:
ADP
| Thu, 19 Jul 2007 16:13:21 EST |
| To all of you Loan Officers, especially in the subprime industry, DO NOT pretend that these lenders do not systematically discriminate against minorities. The lender we had the misfortune of getting had already been found guilty of predatory lending and ordered to pay 160 million restitution. We were not aware of this because they were not sanctioned. If the regulators had monitored these loan sharks more, you whining loan officers would not be out of a job. |
|
| Above Posted By:
Debby
| Thu, 19 Jul 2007 06:29:54 EST |
| What these studies are really telling is these individuals should stop being the minority. Join the majority, educate yourselves, stop being ignorant in your decisions and actions. Stop being VICTIMS and start being Victors BE RESPONSIBLE. Be WISE not WIMPY! Say NO if need be! Be Accountable to God, your family, and yourself! or BE the Minority part of the irresponsible BLAMER croud, always OWED something crowd. Always following SUPPRESSING organizations or STIFLING individuals! |
|
| Above Posted By:
here we go again
| Wed, 18 Jul 2007 19:10:24 EST |
| I would be ashamed to admit, that I just receive whatever anyone is giving me. Like I have NO Choices. To admit that I just accept whatever is shoved in front of me as if I lack the ability to say no! or Ask what options r available to me. When it comes to these studies, I have not read where a g__ was held to anyone's head forcing a person to sign or "receive" anything. Crummy credit, Crummy job history CRUMMY LOAN. Good credit, good job history GOOD LOAN. Ignorance= BAD LOAN. Knowledge=Apaper |
|
| Above Posted By:
here we go again
| Wed, 18 Jul 2007 18:46:58 EST |
| cont. from Jason Wood.
closing costs, ect. And guess what? I'm caucasian. One of the institutions frankly tried to screw me because this was my first loan app. So in the end I took the best offer and got a loan I deserved based on my credit, earning capability, and past financial stability. So apperantly who ever is representing the caucasian population in america should sue on my behalf because some of the institutions did not offer me as good of a deal as others. |
|
| Above Posted By:
Jason Wood
| Wed, 18 Jul 2007 12:15:23 EST |
| I don't know about the rest of you but when I got my first home loan last year I thought, "What information about me will the lending institutions want." So I got my tax info from the previous year, my and my wifes pay stubs from the previous 6 months and my banking statements (including savings, checking, 401ks, ect.) from the previous 6 months. I took that info to about 4 different places and got GOOD FAITH ESTIMATES from all of them. Guess what!? All four gave me different rates, ...cont. |
|
| Above Posted By:
Jason Wood
| Wed, 18 Jul 2007 12:10:25 EST |
| I am a younge Black Female that bought my 1st home last year(March 2006). When I applied for my mortgage I was told I Had to have mortgage insurance. Because my DTI was to high. The only thing I had on my credit were student loans(deferred) and a car that was paid for.I wasn't tought what to do or how to go about securing a mortgage and /or what to look for. This the reason I became a loan officer because of the way I was treated while buying my home. Cont. |
|
| Above Posted By:
Monique-TN
| Wed, 18 Jul 2007 11:35:36 EST |
| Has anyone actually read the NCRC report? ("Income is No Shield Against Racial Differences in Lending") The whole point is that even with similar income and credit, "If a consumer is a minority, particularly an African-American or a Hispanic, the consumer is most at risk of receiving a poorly underwritten high-cost loan." and, "that racial differences in lending increase as income levels increase." This is not because minorities are wholly irresponsible credit risks, its due to systematic bias. |
|
| Above Posted By:
Douglas
| Wed, 18 Jul 2007 08:31:17 EST |
| I've been in the loan business for many years, I've pulled thousands of credit reports and here is the facts! If you indiscriminately pulled the credit of 1000 caucasions, 1000 african americans, 1000 hispanics, and 1000 asians, the results would be, caucasions are all over the spectrum from real bad to great, african americans 90% will have bad credit, hispanics have either great or in the toilet credit, Asians either no credit or great credit. Pull credit, find out, go from there! |
|
| Above Posted By:
Dale
| Tue, 17 Jul 2007 23:38:10 EST |
| The Dale at 17:19pm Tues. is someone different and Yes, I know I spelled Laziness wrong. Regardless, any and all organizations such as the NAACP and numerous others should spend more of their time encouraging individuals to be personally responsible for their decisions and accountable for their actions. Unfortunately, organizations realize if they do that there would be no need for "Organizations". Lets get back to being the Land of Opportunity, rather than Entitlements and BLAME. |
|
| Above Posted By:
Dale
| Tue, 17 Jul 2007 23:05:40 EST |
| To Quote Dennis Miller:"I think, Racism today has more to do with the thickness of one's skin, than the color of it! If I felt I was going to be discriminated against. I would not expect others to babysit me, I would be more diligent, gain greater knowledge, and become WISER, about whatever I want to become involved in. I want to be responsible for my life, my decisions, my family, and my money. People today must be accountable for THEIR PERSONAL DECISIONS , not be looking for someone to BLAME! |
|
| Above Posted By:
Dale
| Tue, 17 Jul 2007 17:41:45 EST |
| White, African American, Asian, Hispanic whatever. Take responsability for your (I repeat) your actions, your life and your money. You are responsible for your life! It is not anyone else's duty to babysit your actions. Pay your bills on time, don't borrow what you can't pay back and don't BLAME others for your irresponsibility and lasiness. All of us are aware of the world we live in. If YOU do not like what YOU purchased, YOU have no one to BLAME but YOU! Myself included! TAKE RESPONSIBILITY!! |
|
| Above Posted By:
Dale
| Tue, 17 Jul 2007 17:19:11 EST |
| Why do you think there are now laws that require licensing to be a L/O? MD. did not require this until this year when they(the state ) realized that the loan industry is out of control.
Maybe, with tighter regulations, this practice of unequality will stop. I for one believe that several of the companys mentioned are CROOKS in the highest degree.This is based on my dealings with them. |
|
| Above Posted By:
anonymous
| Tue, 17 Jul 2007 15:31:35 EST |
| The people here who are addressing the LO's rather than the lenders are right on target! I have worked with both black and hispanic Brokers and they have said several times how often others in the industry are taking advantage of misplaced "racial" loyalty. The NAACP is simply reinforcing the wrong perception that it is "the Man or Whitey" again. As it is and as it has been the enemy is often closer than we may think. |
|
| Above Posted By:
erik
| Tue, 17 Jul 2007 14:27:44 EST |
| I'm an LO for a large lender and the reason we have this going on is bc of the many un-ethical brokers in the industry that are only looking to make a fast buck...they don't have any regards for their customers or their needs. They used the pay option arm loan's minimum payment to qaulify people that never would have qaulified for the loan to begin with. Thank them for bringing the market down...Losers. |
|
| Above Posted By:
anonymous
| Tue, 17 Jul 2007 14:20:04 EST |
| My wife and I received a Wells Fargo Loan that had a very high prepayment penalty, but I think that the credit monitoring agencies are also involved in low balling African American Credit ratings. |
|
| Above Posted By:
Mhill
| Tue, 17 Jul 2007 04:38:55 EST |
| Wells Fargo and Countrywide are listed in the press release from the NAACP: http://www.naacp.org/news/press/2007-07-11/index.htm |
|
| Above Posted By:
Anon
| Mon, 16 Jul 2007 17:31:24 EST |
| The article lists Wells Fargo and Countrywide yet the lawsuit does not. Are they or aren't they party to this litigatioin? |
|
| Above Posted By:
Anonymous
| Mon, 16 Jul 2007 17:15:55 EST |
| The abuse of our legal system will result in further tightening of all lending guidelines, making otherwise worthy individuals unable to obtain credit for their "American Dream". Who will be blamed for that "problem" I wonder.... |
|
| Above Posted By:
Anonymous
| Mon, 16 Jul 2007 17:01:45 EST |
| I know that these type of abuses occur. There is no doubt. However, having just listened to my fellow loan officer get berated for dening credit to a client, called racist, and threatened with litigation, I wonder how often this happens to L/O's that are not commiting any wrong doing. It is frightening to lend to anyone anymore because EVERYONE is looking for the easy out when they cannot meet the obligation they agreed to. |
|
| Above Posted By:
Anonymous
| Mon, 16 Jul 2007 16:58:59 EST |
| Thank you for posting a comment that made sense Kim. I can tell the race of most of the people just by their comments. It is up to the buyer to shop around for the best rate and program possible!! 90% of the business is now done over the phone or through the internet and you don't have to disclose your race. I have been in the industry for 17 years and have never come across us giving higher rates to African Americans. Just another thing you can cry racism over! |
|
| Above Posted By:
T
| Mon, 16 Jul 2007 15:27:17 EST |
| It amazes me that so many responses ignored the facts presented in the article and instead called the NAACP biased.
The 1st 2 paragraphs clearly state that a comparison of credit qualifications were made by two independent organizations
What do you think the words qualified and credit worthy refer to?
Why is it when minorities are wronged by the white establishment in this country that some want to overlook or simply ignore it to propagate their own biased and negative stereotypes? |
|
| Above Posted By:
anonymous
| Mon, 16 Jul 2007 15:11:04 EST |
| To The Anonymous Ones,
All of the things you are taking into account, Im sure they took into account. It is not hard to notice a pattern of racism. Read the article. It clearly says the only differences between borrowers is race. The NAACP would not waste time if they did'nt see evidence. Your automatic defense of banks shows the racist society that we live in. You side with the banks so easily why do you find it hard to believe these banks don't share your same stance against minorities. |
|
| Above Posted By:
Paul - Landlord/LO/Real Estate Agent
| Mon, 16 Jul 2007 13:51:49 EST |
| This has been a common practice for decades. This is carry over from other industries. Everybody knows that African Americans pay more for cars, home loans, heloc's regardless of credit score. African American females pay more than African American males. (its the American way). This is not opinion its fact. |
|
| Above Posted By:
Robert Ferrell
| Mon, 16 Jul 2007 13:37:43 EST |
| Yes, race does matter, if you read the report the credit worthiness and income level was the same for whites & blacks in the study, yet blacks were still charged more.
What's your defense of this! I'll bet the people yelling race doesn't matter are white, you never get, then again I guess you do
hey you want to keep the scales tipped in your favor! |
|
| Above Posted By:
anon
| Mon, 16 Jul 2007 13:21:40 EST |
| The borrowers get an initial Good Faith which is acceptable. It is not until later, weeks into the process when it is time for final loan approval that the loan officer changes the program because what was originally promised is not obtainable. The borrower is stuck bewteen a seller who may not want to do an extention and wanting to get a home. The loan officer many times tells the borrowers they can refinance once they get into the homes. Once they sign the loan documents it is all over. |
|
| Above Posted By:
kim
| Mon, 16 Jul 2007 12:52:54 EST |
| It is the responsibility of the person wanting the Loan(i.e. the borrower)to know what types of loans are out there and what types of loans they will qualify for. It is also the borrower's responsibility to know what the interest rate is and how that rate can flucuate up or down depending on the borrower's credit history. The borrowers are responsible for themselves. They are told over and over to shop for the best loan they can obtain for themselves. That means educate yourself before you start. |
|
| Above Posted By:
Jo Ann
| Mon, 16 Jul 2007 11:50:07 EST |
| What I have observed through the last 10 years of having ex used car salespeople flooding this industry included another phenomena.The minority broker shops who had the "automatic" trust of their minority group that "one of our own" won't take advantage of us.....because that's they way most of them advertised themselves.Lemmings to the sea,led by "their own "whose greed and lack of ethics overcame any sense of conscience about what damage they were doing to their own minority group. |
|
| Above Posted By:
Bobbie West
| Mon, 16 Jul 2007 11:41:24 EST |
| Go after the brokers, the lenders aren't doing anything but paying higher yield spread for those high interest loans, it's the LOs that select those loans and sell them to the unfortunate borrowers. |
|
| Above Posted By:
James - RE Agent/Landlord/LO
| Mon, 16 Jul 2007 11:21:08 EST |
| Being a LO and having worked in a predominately black mortgage office and another predominately white office, I can attest that the LOs in the predominately black mortgage office would push for higher rates so the LO would get more yield spread. They would shop for higher yield spread instead of low interest payments, and many times their predominately black purchasers would end up paying a point or two higher than what they could have gotten.
|
|
| Above Posted By:
James - RE Agent/Landlord/LO
| Mon, 16 Jul 2007 11:20:35 EST |
| I sure would like to file a suit against all those would be clients/borrowers who bailed on me, loan to docs and they say "um this other lender is getting me 1/2point lower rate I am going with them." always the deal would end up to be no better or even worse then the one I had locked, I would like to also file a suit against the the dirt bag mortgage scums, and their mothers for giving birth to them, they make all us honest guys look bad THIS COMES DOWN TO INDIVIDUAL GREED, PERIOD-NOT BIG BANKS. |
|
| Above Posted By:
Pob
| Mon, 16 Jul 2007 11:08:08 EST |
| While there is something to look at in regards to race in this situation, I do believe that it ultimately the responcibility of the borrower to make sure that they are not being overcharged. As for the discussion of broker's being to blame, typically if I can sell a "sub-prime" rate to an "A-Paper" client, people tend to forget that a majority of these people are originated by retail, because a broker is losing money by taking "A-paper" clients to "sub-prime" lenders. |
|
| Above Posted By:
James CA Broker
| Mon, 16 Jul 2007 11:02:09 EST |
| Most of you obviously did not read the article. It clearly states that the study was conducted based on loan candidates with equal creditworthiness and credit risk. Taking this into account there may be something to this suit. But we should allow the facts to tell the story not our biased opinions. |
|
| Above Posted By:
Whitney
| Mon, 16 Jul 2007 10:51:18 EST |
| Have you ever heard of the phrase "knowledge bears responsibility?" These lenders are aware of the statistics. Yes, in many cases the mortgage brokers are the culprits, but ultimately they are not ones actually lending the money. These lenders have a fiduciary and social responsibility to the consumer. The relationship is similar to a broker / agent relationship. Ultimately, the broker is held accountable for the agents actions. |
|
| Above Posted By:
Kevin
| Mon, 16 Jul 2007 10:46:12 EST |
| I am a mortgage rep and yes rates are higher or upfront fees are charged. All of these are disclosed to the client and they have the choice to either pay upfront or ride the rate. This is a commision base business. There are reps out there doing scandalous things although ultimately the final say rests in the clients hands whether or not he is asking all that he can. Also shopping around doesn't hurt. Get real color doesn't make a difference. although intelligence is a requirement? |
|
| Above Posted By:
dennis
| Mon, 16 Jul 2007 10:36:50 EST |
| First of all, as a Loan Officer, we are always blamed for everyone's else's ignorance. There are so many disclosures, BY LAW, that customers see and have to sign BEFORE a loan is submitted to one of these lenders. If they chose to do the loan, no matter what the fees, or the rate is, than that's on them. You cannot blame other's for your lack of knowledge. Ignorance is not bliss. |
|
| Above Posted By:
Anonymous
| Mon, 16 Jul 2007 10:35:19 EST |
| First of all, the "brokers" are the ones responsible" holds no water. The lenders are always aware of the pricing on each loan, or they should be because of predatory lending laws in each state and, at a minimum, of HOEPA loans.
More importanly, just like HMDA reporting, there is no evalution given to credit integrity. How can you possibly evaluate a loan application w/o credit scores or review. It is sad the NAACP and the government let this foolishness happen. |
|
| Above Posted By:
Jim
| Mon, 16 Jul 2007 10:29:13 EST |
| NAACP is not looking at the full picture. I would like to see a survey that depicts what % of these minorities pay their bills on time. Did the NAACP also look at the purpose for all of these loans with higher rates? Did they check to see if the rate was higher bc of cashing out? Most applications/credit reports are run thru a DU. DU doesnt take race as a compensating factor. No DU approval means subprime. Pay your bills on time, have reserves & strong job history and youll get a good rate. |
|
| Above Posted By:
Sandra
| Mon, 16 Jul 2007 10:24:56 EST |
| Melissa Couldn't have explained it any better. Why does it have to lead to discrimination toward certain cultures. Anybody can be charged a certain amount at any time. You shouldn't look at the lender, the study should look at the individuals they are dealing with. This Study is completely bias and well overrated. |
|
| Above Posted By:
Keith
| Mon, 16 Jul 2007 10:18:29 EST |
| In my opinion it has more to do with lack of education on loan products and the ability to shop around than racial motivation. More financial educational information should be provided to minorities even if it has to be in another language. This story emphasises the lack of skills in negotiating financial products whether it is a car, home loan, credit card or any other financial product.
Education Education Education |
|
| Above Posted By:
Anonymous
| Mon, 16 Jul 2007 10:14:54 EST |
| Why is the NAACP suing the lenders? Most of these companies offer wholesale lending to brokers. It's the broker who charges the outrageous fees, not the lender. It's the broker who chooses the loan program. And this article doesn't mention credit score. Most sub prime programs are score-driven, not income driven. If the NAACP is basing their suit soely on race and income, without considering credit, then the suit isn't based on all the facts. |
|
| Above Posted By:
Anonymous
| Mon, 16 Jul 2007 10:11:09 EST |
| Is this study based off of the lenders themselves doing retail business, or the business that is created by the brokers they work with?
If it is based on the loans that the brokers originated, how is the lender supposed to control the pricing? All brokers are given a window in which they are allowed to charge. This window is usually determined by underwriting guildelines for that particular state.
If one broker chooses to charge one client more than another, is the lender to blame?
|
|
| Above Posted By:
Melissa
| Mon, 16 Jul 2007 09:31:56 EST |
| As a Mortgage Broker in Saint Louios Missouri I have to say how surprised I am that the word credit was not used once. Having a high FICO score has much more to do with rate than income levels. Even someone who does not make enough money for a loan can get a very good rate by simply having a high FICO score. |
|
| Above Posted By:
jason
| Mon, 16 Jul 2007 09:24:01 EST |
| This is a joke! Rates and pricing are determined by credit background, NOT RACE! Being in the business and have worked for one of the lenders above, I have not once looked at a file and determined the rates based on the person's race, nationality, etc.. Just another way to put the blame on others than accepting the fact that it's the borrower's fault for not doing their research. In CA, the borrowers are provided with several disclosures before signing. If you like what you see, dont sign! |
|
| Above Posted By:
anon
| Mon, 16 Jul 2007 09:02:55 EST |
| I wonder how much of this is the Mortgage Brokers who USE
those lending institutions. Pricing happens in the "Brokers" office with the Loan Officer who took the application.
That is what "Yield spread" is, Giving someone a higher rate then they could get. The Loan Officer offers rates off of a rate sheet that they get from the lender. The actual lender doesnt see the "Race" most of the time. |
|
| Above Posted By:
Natalie Raye
| Mon, 16 Jul 2007 09:01:45 EST |
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