Biden Admin Wants More 'Equitable' Home Ownership
- Thread starter twenty02
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No one with any sense of reality had high expectations for this administration. They existed simply to keep trump out of the white house and maintain sanity until a better option came along.
Unfortunately, crap like this, loan forgiveness and culture wars were not supposed to happen.
Feel free to criticize anything i post, but I do expect you to only criticize what I actually post.
I never posted that lower credit scores would not equal higher costs than higher.
There are dozens of links, here is just one that might help you better understand the changes...which will end up in court BTW.
Biden raises costs for homebuyers with good credit to help risky borrowers
The administration's new rule will reduce mortgage fees for riskier borrowers but will be subsidized by borrowers with higher credit scores.
www.newsweek.com
You're going to blow some minds with this one. I wonder how many will actually pause and consider what you're saying.
They pay to subsidize other problem borrowers and all the extra expenses incurred by them trying to collect but go on kidding yourselves. They aren't subsidizing the good people that pay on time.
That is spin.
Higher rates help cover higher losses and collection expenses associated with higher risk loans, including credit cards.
It’s been several years since I resigned my last bank board position. I don’t remember the terms and enforcement. I do remember as a member of the loan committee reviewing maps of our community showing where we were accepting loan applications and making loans. That same map was reviewed by federal examiners during their audits.
Edit: The maps/charts where kept to show compliance with the Fair Housing Act.
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What criteria was used when drawing that map? Basing lending decisions on geography sounds problematic.
The west end of Washington is mostly poor folks. North side more wealthy. East side middle income and south side middle income and lower. Generalizations but a map showing very few applications or loans in the west end would easily indicate a problem.
It’s been awhile like I said. I am sure other numbers are kept associated with income.
It's so there is no "redlining" at an institution, meaning they are not purposefully not lending to potential borrowers in a certain area. The key is they would still have to qualify, but as long as the declination was consistent with all areas represented it is fine. This helps in financial institutions on lending based on area, income, race (in some cases) and others to make lending fair.
“Redlining” was the word I was looking for. Thank you.
I’ve been on four different bank boards. Two smaller banks and then the banks that bought us out. In those four institutions they took the “redlining” seriously. I never saw an attempt to just massage numbers to be in compliance. All the institutions seriously tried to make loans to all areas of the community. BUT they wanted good credits.
Can I ask what bank you were on the board? I know of one small bank in your area that was bought out, I believe the name was First Bank of Odon or something like that?
Also, I have been in many meetings regarding lending practices and not once did anyone say "don't lend to that area" the job of the bank is to make money one way to accomplish that is to lend it out no matter where the person lived. If they qualified they were good, the only thing hurting lower income areas is the condition of the property hence hurting the value.
Went back to this post because I came across this article and found it interesting and making sense.
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www.realclearpolitics.com
That's what some of us have been saying for two decades on here.
Liberals like shooter race to the board to say maga and old white guys. That’s stepping over dollars to chase pennies. Anybody living in a city has a far greater chance of being shot or carjacked by a black guy than anybody else - by a wide margin. Asians almost commit no crimes at all.
Bill cosby used to call out black culture and youth. He did so in a poignant way. A few other comedians as well. But Dem politicians? Forget it
I don’t think waging war on teachers and banning books is the way to go if we want more kids to read better.
Gets so old from these idiots. No way you could have compassionate people on a bank board trying to do their job as well as help the community. This shit gets so irritating. It never stops. These idiots find a way to weave it in every conversation.
"maps showing where we were accepting loan applications and making loans", is literally the definition of redlining.
being a smart ass or misdirection won't ever change that.
For your information asshole, the maps were required my the federal regulators to review in their audits.
Using the maps in order to redline wasn’t what they were used for at all.
I was confused as well. I initially thought the maps showed where you were willing to make loans, not where you had made loans. (That's why I mentioned "lending decisions based on geography".) The former would have been redlining, the latter was merely a representation after the fact.
for your information asshole, "maps showing where we were accepting loan applications and making loans", absolutely IS the very definition of redlining.
really dude, how stupid are you.
if what you meant to say is different than what you actually said, that isn't on me.
if you don't grasp the difference, that also isn't on me.
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But whatever you do...don't use an actual map...that's the definition on red-lining 😄
"The following are examples of steps a bank can take to mitigate potential redlining risks relating to its market area:
• Familiarize loan officers and applicable loan staff with the fair lending requirements to ensure fair and equitable
treatment in the lending practices throughout the entire area served by the bank.
• Periodically review where the bank is lending, especially if the bank has experienced recent growth or expansion
activity. If the bank has expanded the geographic area it serves, this larger market may reflect a different demographic
profile. Also, the demographic profile of the bank’s market may shift over time, so a regular review can help spot any
changes that may affect the bank’s redlining risk.
• Pay close attention if the bank’s assessment area includes only partial political subdivisions (portions of towns, cities,
or counties). For example, if the bank delineated half of a county as its assessment area, it may want to review the
demographics of the excluded areas to assess the risk of excluding minority populations from the bank’s areas. The
CRA rules require that an assessment area generally consist of one or more MSAs or metropolitan divisions or one or
more contiguous political subdivisions, such as counties, cities, or towns."
"The following are examples of steps a bank can take to mitigate potential redlining risks relating to its market area:
• Familiarize loan officers and applicable loan staff with the fair lending requirements to ensure fair and equitable
treatment in the lending practices throughout the entire area served by the bank.
• Periodically review where the bank is lending, especially if the bank has experienced recent growth or expansion
activity. If the bank has expanded the geographic area it serves, this larger market may reflect a different demographic
profile. Also, the demographic profile of the bank’s market may shift over time, so a regular review can help spot any
changes that may affect the bank’s redlining risk.
• Pay close attention if the bank’s assessment area includes only partial political subdivisions (portions of towns, cities,
or counties). For example, if the bank delineated half of a county as its assessment area, it may want to review the
demographics of the excluded areas to assess the risk of excluding minority populations from the bank’s areas. The
CRA rules require that an assessment area generally consist of one or more MSAs or metropolitan divisions or one or
more contiguous political subdivisions, such as counties, cities, or towns."
The maps weren’t used to redline. They were used show the banks coverage in the community and identify areas the bank wasn’t covering adequately. Areas where the bank had deficiencies they tried to address.
I guess I should give up. I am obviously not getting it communicated properly.
I’ve evidently done a horrible job of explaining. There was certainly no malice in the use of the maps. The maps were dotted with color coded pins. It was easy to identify areas the banks weren’t covering adequately.
A
anon_6hv78pr714xta
Guest
I knew what you meant.
People should give each other the benefit of the doubt. If you're confused or reading something as someone being a bad person, ask questions before judging.
so the red pins were totally different than the red ink. got it. bwg
word of advice. stop digging.
that said, i have some lending background though ancient, and i know the attitudes of those involved therein.
i also grasp and am sympathetic as to why they have said attitudes, and how they acquired them.
and the necessity of standards, and the health of the industry to society as a whole.
regardless, once maps, actual or understood, become involved in the process rather than just the basic ability and willingness to pay metrics, is when things can go off track.
the new gig economy is going to make things that much more complicated for the industry.
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