Moving to here: http://www.hud.gov/offices/fheo/lending/fairlend.cfm
They cite that “minority” groups are less likely to receive fair lending. What’s underlying there is the statistics fit that mold because statistically the income amongst the two groups listed is traditionally lower than the rest of the pack. So they can say “they discriminated against me because I’m xyz,” and on paper it can be made to look that way. There’s truth, lies, and statistics. This falls into the latter.
Also, Vent, I never blamed the poor people for the economic crisis. You read into my comments too far. I’m saying everyone is to blame. Lenders (making risky bets on loans), Congress (enforcing rules to prevent discrimination against minorities when no discrimination exists, and enabling Fannie and Freddie), and people of all financial standing (taking out loans they clearly can’t afford when The Man comes calling, whether they didn’t understand or because they were trying to flip the house).
Unfortunately, the majority of the “bad loans” that were made were to people with poor credit and not enough income to cover the cost of the mortgage (aka high risk). Traditionally and statistically these “high risk” people are in the lower income brackets. But what exacerbated the problem was then the banks started playing blackjack with the mortgages and wrapping them into securities. Then, when they sold them to other organizations, those organizations didn’t know what was a risk and what wasn’t. And backing all this up was Fannie and Freddie, at the direction of congress. Everyone from the poor pauper, to the middle class, to the millionaires are to blame for what happened. It’s not the republicans nor democrats fault, because both have had the chance to fix the problem before it became an issue.
But, to trace back the bubble bust to its source, it’s here: The repeal of the GLASS-STEGALL financial regulation. That repeal in 1980 and 1999 enabled the entire situation.
Summing it up: http://www.sodahead.com/united-states/how-the-housing-bubble-happened/blog-79143/
Sorry, “Fair” lending act.
http://portal.hud.gov/hudportal/HUD?src=/topics/fair_lending
Moving to here: http://www.hud.gov/offices/fheo/lending/fairlend.cfm
They cite that “minority” groups are less likely to receive fair lending. What’s underlying there is the statistics fit that mold because statistically the income amongst the two groups listed is traditionally lower than the rest of the pack. So they can say “they discriminated against me because I’m xyz,” and on paper it can be made to look that way. There’s truth, lies, and statistics. This falls into the latter.
Also, Vent, I never blamed the poor people for the economic crisis. You read into my comments too far. I’m saying everyone is to blame. Lenders (making risky bets on loans), Congress (enforcing rules to prevent discrimination against minorities when no discrimination exists, and enabling Fannie and Freddie), and people of all financial standing (taking out loans they clearly can’t afford when The Man comes calling, whether they didn’t understand or because they were trying to flip the house).
Unfortunately, the majority of the “bad loans” that were made were to people with poor credit and not enough income to cover the cost of the mortgage (aka high risk). Traditionally and statistically these “high risk” people are in the lower income brackets. But what exacerbated the problem was then the banks started playing blackjack with the mortgages and wrapping them into securities. Then, when they sold them to other organizations, those organizations didn’t know what was a risk and what wasn’t. And backing all this up was Fannie and Freddie, at the direction of congress. Everyone from the poor pauper, to the middle class, to the millionaires are to blame for what happened. It’s not the republicans nor democrats fault, because both have had the chance to fix the problem before it became an issue.
But, to trace back the bubble bust to its source, it’s here: The repeal of the GLASS-STEGALL financial regulation. That repeal in 1980 and 1999 enabled the entire situation.
Summing it up: http://www.sodahead.com/united-states/how-the-housing-bubble-happened/blog-79143/