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Companies Targeted for Avoiding Risky Borrowers

I’ve said before that you can expect an explosion of ethno based politics as engineered demographics is forced on the United States. Here’s a grenade to give you a little taste of what’s coming.

A group calling themselves the National Community Reinvestment Coalition filed a complaint with HUD, charging that some lenders were denying mortgages to those with credit scores that qualify them under HUD guidelines. Some lenders were only handing out loans to those with credit scores of 600+, while HUD only requires a minimum of 580 to qualify. If this proves to be the case, the NCRC would technically be in the right for filing the complaint. The Obama regime has promised to make it right.

One of the companies, Nationstar Mortgage LLC, is run by former Fannie Mae chief exec Daniel Mudd. He was booted out a few years ago when the Obama regime took over the burning building that the Democrats had set ablaze. If anybody understands the consequences of loaning money to those that can’t pay it back, it would be Mudd. If he is guilty of this, he clearly feels that the consequences of being caught don’t outweigh the risks of actually loaning the money to realistically unqualified borrowers.

This complaint was not filed on behalf of all who may have possibly been denied a loan.

The NCRC said the lenders were only providing mortgages to borrowers with credit scores higher than the 580 minimum required by the FHA, a move it said disproportionately affects African-Americans and Latinos.

Apparently, the NCRC feels this would only impact people of color. No surprise, considering what this ACORNian group is about.

NCRC has grown to an association of more than 600 community-based organizations that promote access to basic banking services including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America’s working families.

Yes, they are a community based organization. So is ACORN. They twist the arms of banks to give credit to those that realistically aren’t qualified. So does ACORN. They have the support of the Obama regime. So does…you get the picture.

The guidelines these companies are accused of violating are the ones that Democrats put in place. They are responsible for the explosion of Fannie Mae, and apparently haven’t learned a thing. Those with lower credit scores-regardless of ethnicity, are the lion’s share of defaults. Even with HUD insurance guarantees, these companies still engage in mortgage backed security schemes. Any default, insured or not is bad news. What I think of those MBS’ is another post. I will say I don’t like them.

Although everybody is wrong in this case, you can’t provide justice for one group without discriminating against another in general. In order to provide an opportunity for those with otherwise unacceptable credit scores to obtain mortgages, the government is discriminating against the companies who make those loans. They are being forced to do business with those they otherwise wouldn’t, and it has nothing to do with race or ethnicity. It has to do with money. This isn’t the only example of how wealth redistribution in the form of political correctness is damaging this country.

8 comments to Companies Targeted for Avoiding Risky Borrowers

  • Forgive me if this is a stupid question, but isn’t this what got us into trouble in the first place?

  • Jim

    What scares me is that the so-called progressives are not stupid. They know that this is what caused the mess that we are in now and they don’t care. They want to destroy America.

    Does anybody know if it’s possible for the new Congress to cut-off funding to HUD until they change their policies?

  • This is exactly the kind of thing that caused the mortgage mess in the first place. Nothing has changed.

    Jim, it would probably be a bad idea to defund HUD. They do guarantee many loans, and banks would refuse to lend to even legitimate borrowers if they didn’t have the HUD insurance. I think it’s the fair lending act that needs to be revisited.

  • Bah! You beat me to this one. Yes, it is the CRA that gave us all the crappy mortgages.

  • It seems everyone has had the same idea as me. Let’s see now, force banks to make loans to people who can’t pay them back, but they deserve it anyway. After all, we have to make sure everything is fair in the housing market.

    Nope, been there and done that. Didn’t work then and will not work now. Will these people never learn?

  • Remember, it was Obama that was a “community organizer” himself. Is it any surprise he’s taken that mindset all the way to the White House?

  • Well, the good news is at some point the Red Chinese will stop lending us the cash. Then and only then will this nightmare stop. And that is what it is getting to be. Freakin nightmare.

  • I talk about China alot. As soon as they’re done draining the money out of this economy they’ll cash in their U.S. treasuries and we’ll collapse like a house of cards.

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