Administration pushing for more equal rights regulations

coolguybrad · Nov 11, 2012

http://news.investors.com/ibd-edito...igger-disparate-impact-club.htm#ixzz2BwWpKQzb

Equal Outcomes

This means that even race-neutral rules for mortgage underwriting and consumer credit scoring potentially can be deemed racist if prosecutors can produce statistics showing they tend to result in adverse outcomes for blacks or Latinos.

Already, Attorney General Eric Holder has used the club of disparate-impact lawsuits to beat almost $500 million in loan set-asides and other claims out of the nation's largest banks.

In addition to the financial settlements which include millions in funding for affordable-housing activists Bank of America, Wells Fargo and SunTrust have all agreed to adopt more minority-friendly lending policies.

Though the administration seeks equal credit outcomes, regardless of risk, across the entire banking industry, it doesn't have to sue every bank to achieve its goal. As a prophylactic against similar prosecution, IBD has learned the American Bankers Association recently advised its 5,000 members to give rejected minority loan applicants a "second look," which it says "can result in suggested changes in underwriting standards."

Also, the administration sent a chill through the financial industry earlier this year when it announced its new credit watchdog agency will join Justice, as well as HUD, in using the disparate-impact doctrine to enforce civil-rights laws.

Consumer Financial Protection Bureau chief Richard Cordray warned companies the agency will "protect consumers from unfair lending practices as well as those that have a disparate impact on communities of color." He added:

"That doctrine is applicable for all of the credit markets we touch, including mortgages, student loans, credit cards and auto loans," as well as small-business loans.

Read More At IBD: http://news.investors.com/ibd-edito...igger-disparate-impact-club.htm#ixzz2BysD0n9a
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Isn't this kind of what got the subrime mortgage debacle started? It never ends.

FreshAir · Nov 11, 2012

coolguybrad said: ↑

http://news.investors.com/ibd-edito...igger-disparate-impact-club.htm#ixzz2BwWpKQzb

Isn't this kind of what got the subrime mortgage debacle started? It never ends.
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people had no issue paying their mortgages until foreign outsourcing shipped their jobs overseas, doesn't mater if you been working and paying on time for 20 years, when you lose your job... you can no longer pay and a LOT of people have lost jobs to foreign outsourcing

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coolguybrad · Nov 11, 2012

FreshAir said: ↑

people had no issue paying their mortgages until foreign outsourcing shipped their jobs overseas, doesn't mater if you been working and paying on time for 20 years, when you lose your job... you can no longer pay and a LOT of people have lost jobs to foreign outsourcing

.
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Whats the point of a credit score then?

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Administration pushing for more equal rights regulations

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Administration pushing for more equal rights regulations

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