And You Thought the Housing Crisis Was Over!

[Roo]

Yes, believe it or not, the federal government is now starting another initiative to force banks to lend to low-credit-rated blacks and Hispanics -- not just anybody but specifically blacks and Hispanics -- and is threatening -- and already imposing -- huge punitive fines if they don't.


more....

They're going to take over the credit rating agencies and force them to change their standards to accommodate blacks and Hispanics so that nobody will have any idea who is a bad credit risk and who is not.

http://spectator.org/archives/2012/07/27/and-you-thought-the-housing-cr

President Urkel should be ashamed.

[Missileman]

Yes, believe it or not, the federal government is now starting another initiative to force banks to lend to low-credit-rated blacks and Hispanics -- not just anybody but specifically blacks and Hispanics -- and is threatening -- and already imposing -- huge punitive fines if they don't.


more....

They're going to take over the credit rating agencies and force them to change their standards to accommodate blacks and Hispanics so that nobody will have any idea who is a bad credit risk and who is not.

http://spectator.org/archives/2012/07/27/and-you-thought-the-housing-cr

President Urkel should be ashamed.

Unemployed and on the dole DOESN'T disqualify you from attaining a mortgage? WTF?

[Anton Chigurh]

And You Thought the Housing Crisis Was Over!Umm... No.

Only dummies did.

[Little-Acorn]

Sounds like the Democrats are doing exactly the same things all over again, that brought on the present recession we've been in for the last several years.

See http://www.debatepolicy.com/showthread.php?18610-New-Special-Report-on-quot-Saving-Our-Economy-quot

Don't these people ever learn?

Is it November yet?

[KarlMarx]

And there are people in this country that want four more years of this guy...

[Thunderknuckles]

"The bank will have to "prominently display" a notice informing minority customers that they cannot be turned down for loans just because they are receiving public assistance such as unemployment benefits, welfare payments or food stamps. (Maybe they can even use food stamps for the down payment.) Wells Fargo must provide minority customers $50 million for down-payment and closing-cost assistance, including "Borrower Assistance Grants" of up to $15,000 per individual. It was also ordered to pay $125 million to as yet unnamed victims of previous discrimination."


Unbelieveable!
I never thought the idea of Reparations stood a snowball's chance in hell but it looks like Obama found a back door.

[Kathianne]

It seems the NY Post has more details and it seems to have been the impetus for The Spectator story. This is a bit less than a page and half, of 5 page story. Read it:

http://www.nypost.com/p/news/opinion/opedcolumnists/obama_house_of_cards_PbEjZZj7LeOZLORaCXJS6K


Obama’s house of cards Bubble? What bubble!? By pushing bad loans in the name of ‘diversity,’ the president is creating the mortgage crisis all over again (http://www.nypost.com/p/news/opinion/opedcolumnists/obama_house_of_cards_PbEjZZj7LeOZLORaCXJS6K) By PAUL SPERRY
Last Updated: 12:53 PM, July 22, 2012


With studies showing home foreclosures hitting blacks and Latinos hardest, the Obama administration’s answer is baffling as well as destructive — to lend them more money, repeating the cycle of easy credit that led to the housing boom and bust.



A new AARP report finds that even elderly minorities are facing serious mortgage delinquencies. Fifty-and-over African-Americans, for example, are almost twice as likely to lose their home as older whites.


“This crisis is far from over,” AARP policy chief Debra Whitman said. “We need to think about more creative solutions.”


President Obama’s solutions, however, look a lot like the original problems that landed minorities in the financial mess they’re in today.


For starters, his new consumer credit watchdog agency has quietly adopted weaker, minority-friendly mortgage underwriting guidelines first published in a landmark 1994 policy statement released by the little-known Interagency Task Force on Fair Lending.


The 20-page “Policy Statement on Discrimination in Lending” — signed by the heads of 10 federal agencies, including then-Attorney General Janet Reno — warned banks that “the agencies will not tolerate lending discrimination in any form.”


It was a noble goal — undercut by the fact that the statement also set lower standards by which banks could qualify low-income minorities with spotty credit.


“Applying different lending standards or offering different levels of assistance to applicants who are members of a protected (minority) class is permissible in some circumstances,” it said. “Providing different treatment to applicants to address past discrimination would be permissible if done in response to a court order.”


The policy planted the seeds of the mortgage crisis, as lenders abandoned prudent underwriting standards altogether. Yet the 1-year-old Consumer Financial Protection Bureau, which was created by the Dodd-Frank financial overhaul, has dusted off the Clinton-era regulation.


“The CFPB, which did not exist at that time, concurs with the policy statement,” the bureau said in a recent bulletin outlining its policy on battling against “lending discrimination.”


Separately, CFPB chief Richard Cordray announced last week that the agency will, for the first time, regulate the credit-reporting bureaus that provide the credit scores lenders use to assess the default risk of loan applicants.


The CFPB has been soliciting complaints from minorities with damaged credit who claim the reports are inaccurate and racially biased. The agency assumes as few as 60% of consumer credit profiles are accurate.


But a recent comprehensive review by the non-profit, non-partisan think tank Policy and Economic Research Council found that 99.5% are free of material errors.


The Federal Reserve, moreover, found no bias in credit scoring in a 2007 national sample of more than 300,000 credit bureau records. In fact, it found scores typically underestimate the risk posed by African-American borrowers, who on average “show consistently higher incidences of bad (loan) performance than would be predicted” by their scores.


That isn’t stopping the administration from trying to correct perceived injustices.


Cordray says CFPB will rewrite the rules for how the private credit bureaus collect, maintain and analyze such data. He is working on “reforming” the system with the liberal Center for Responsible Lending and other housing activists who believe it denies minorities the credit they deserve.


The federal government also isn’t shy about fining and suing banks to get its way.


CFPB also has been working closely with the Justice Department to enhance fair lending enforcement. Justice has pressured banks to relax their mortgage underwriting standards and approve loans for minorities with poor credit as part of a new crackdown on alleged discrimination, court documents show.


Attorney General Eric Holder, who served as Reno’s deputy, has filed a record number of fair-lending enforcement actions against lenders. More than 60 investigations are active or said to be in the pipeline, and dozens of banks have already settled, including giants Wells Fargo and Bank of America.


Prosecutions have already generated more than $550 million in rebates, loan set-asides and other subsidies from banks that have settled out of court rather than battle the federal government and risk being branded racist by the media.


Leading the charge is Holder’s top civil-rights cop, Thomas Perez, another Clinton retread. Perez has compared bankers to Klansmen, arguing that while bankers may discriminate “with a smile” and “fine print,” it’s “every bit as destructive as the cross burned in a neighborhood.”


He says predatory lenders must now “repair some of the damage done to (minority) communities.”

...

[Roo]

They are beginning to do it cars too.....this has to be stopped.

[Nukeman]

It's racism and class-ism towards whites and successful people everywhere, this is what the current administration wants they are trying to cause a rift in the country of the have and have not's... They forget that those that have not are there because of poor choices (in most cases, I'm not talking those that lost long time employment due to the recession).

This is the opening salvo in class warfare in the country where they are building up others in the disguise of "equality".....:poke:

[fj1200]

Umm... No.

Only dummies did.

Right, it won't be over until there is demand for housing.


Unbelieveable!
I never thought the idea of Reparations stood a snowball's chance in hell but it looks like Obama found a back door.

This will turn out well.

:hide: