Do lend institutions surrounded by the US really make a contribution sophisticated mortgage rates base on the see of the applicants?
http://news.yahoo.com/s/nm/20080407/us_n…
I don't doubt that more sub prime loans went to minority applicants, but isn't it based on their credit and finances?
I've financed 2 homes over the later 5 years and I don't recall being asked almost my race or ethnicity. How would my lenders even know that I'm 1/2 Native American (both my loans are conventional by the way- no subprime or ARM junk)?
Answers:
Actually it's immensely interesting that you were not asked about your ethnicity. When providing a loan, the lender is required to identify the see of the applicant and submit it with the application in instruct to be certain that the bank is complying next to fair lending law. In fact, if they ask and you refuse to answer, they hold to guess your ethnicity by appearance and submit it. If they're not asking, however, it does make me wonder if perhaps they're altering the correct ethnicity...
RACE HAS NOTHING TO DO WITH IT.
Mortgages are based on credit score, income and debt.
Now it could be argued that some race have problem in these areas because of racism. But ?
I own done over 2 thousand sales in concrete estate and I can say that I have sold to a short time ago about ever race. And I own found that some races DO have problems more after others.
Just look in the news newspaper on foreclosures. Most of the names are in some race.
No.
However, lending institutions do transport into account various factor such as ratios of debt to income, net lavishness, etc. They do this because those factors have be shown to have a relationship to how likely it is that the applicant will or will not payment the loan back.
And some of those factors, surrounded by turn, are different -- on average -- between the races. There is also some evidence that financial literacy differs between the races, so that some are more promising, on average, to sign up for a loan whose terms are worse than the best the applicant could get by shopping around.
So if you hear someone conversation about the banks or mortgage companies individual racist, it is this indirect effect that they are most likely talking roughly speaking.
To articulate that would be to charge those institutions of doing something illegal. But prejudice is often daintily veiled. They say that redlining is illegal for insurance companies and on the other hand they charge outrageous prices for certain neighborhoods or refuse to insure surrounded by that neighborhood and that is the definition of redlining. I think here are always those that will do what they think they can get hold of away with for their own personal reasons.
no that is soooo illegal!
Related Questions:
Do you regard as mortgage rates will verbs to jump up or will they start coming down surrounded by the subsequent year?
Don't skulk. Im contained by the business they will climb for a couple of month they won't come down till next year I think they will go up somewhat, but not...
I don't doubt that more sub prime loans went to minority applicants, but isn't it based on their credit and finances?
I've financed 2 homes over the later 5 years and I don't recall being asked almost my race or ethnicity. How would my lenders even know that I'm 1/2 Native American (both my loans are conventional by the way- no subprime or ARM junk)?
Answers:
Actually it's immensely interesting that you were not asked about your ethnicity. When providing a loan, the lender is required to identify the see of the applicant and submit it with the application in instruct to be certain that the bank is complying next to fair lending law. In fact, if they ask and you refuse to answer, they hold to guess your ethnicity by appearance and submit it. If they're not asking, however, it does make me wonder if perhaps they're altering the correct ethnicity...
RACE HAS NOTHING TO DO WITH IT.
Mortgages are based on credit score, income and debt.
Now it could be argued that some race have problem in these areas because of racism. But ?
I own done over 2 thousand sales in concrete estate and I can say that I have sold to a short time ago about ever race. And I own found that some races DO have problems more after others.
Just look in the news newspaper on foreclosures. Most of the names are in some race.
No.
However, lending institutions do transport into account various factor such as ratios of debt to income, net lavishness, etc. They do this because those factors have be shown to have a relationship to how likely it is that the applicant will or will not payment the loan back.
And some of those factors, surrounded by turn, are different -- on average -- between the races. There is also some evidence that financial literacy differs between the races, so that some are more promising, on average, to sign up for a loan whose terms are worse than the best the applicant could get by shopping around.
So if you hear someone conversation about the banks or mortgage companies individual racist, it is this indirect effect that they are most likely talking roughly speaking.
To articulate that would be to charge those institutions of doing something illegal. But prejudice is often daintily veiled. They say that redlining is illegal for insurance companies and on the other hand they charge outrageous prices for certain neighborhoods or refuse to insure surrounded by that neighborhood and that is the definition of redlining. I think here are always those that will do what they think they can get hold of away with for their own personal reasons.
no that is soooo illegal!
Related Questions:
Do you regard as mortgage rates will verbs to jump up or will they start coming down surrounded by the subsequent year?
Don't skulk. Im contained by the business they will climb for a couple of month they won't come down till next year I think they will go up somewhat, but not...