View Full Version : Minorities Get Steered to Worst Loans So They Default
Exxotica
08-23-2015, 11:30 AM
Sorry, this is not acceptable posting, regardless of what kind of dispute inspired it.
It's not my jurisdiction, so I have taken no action as mod other than to report it. lol oh, okay.
Djoser
08-24-2015, 03:36 AM
lol oh, okay.
Sorry, but I don't see the humor in this situation.
Eric Stoner
08-24-2015, 10:47 AM
I think if one keeps the historical perspective in mind, then what happened with housing from about 2003 to about 2006 is fairly easy to understand. As has been posted throughout Dollar Den , there was a harmonic convergence of Federal lending and housing policy ; Fed policy ; bank lending ; Fannie and Freddie mortgage policy ; Wall Street ; the rating agencies; the Congress and yes, the borrowers themselves. All bear their share of blame for encouraging mortgage lending to those who could not afford to pay back what they borrowed. The biggest reason ( among several ) why this mess was created and permitted to continue was that almost everyone involved thought that housing prices would continue going up. When they didn't the music stopped and all those involved had to scramble for the few available chairs. That is just plain historical fact. We can leave aside discussion of such things as : Whether the government should be in the mortgage business ( Thank FDR ) ; what kind of Fed policy do we want; who should bail out whom and under what circumstances etc.
Were there some lenders who "preyed upon " minority borrowers ? Of course there were. Why ? They were disproportionately financially illiterate and irresponsible in their borrowing making them just as responsible as the lenders which is exactly the point that Rick has repeatedly made. Neither he nor I ever tried to "blame ONLY the victim ". Not when compared to the predatory lenders but , But , BUT neither are we willing to give the borrowers a pass and say they are free from any responsibility.