Buying houses you can't afford

[Gerald McGrew]

That just confirms exactly what I posted.

No, it confirms the first half (what the bank was doing), but not the second half.

The lender maintained a low default rate of 5.2% by sticking to loans over $400,000,

Well yeah, if you lend only to the wealthy who already have lots of money, your default rate is going to be very low. So why don't all banks just say, "We're only going to do home mortgages for wealthy people"? Do you think that sort of thing is in the best interest of the nation?

and the Department of Justice is forcing them to make loans below that amount

Right, because if all banks did that, then few middle and lower class families would have access to home ownership. Owning a house would become a luxury of only the wealthy.

which resulted in a default rate of 41.7% for other lenders.

When were those statistics compiled? Does that rate include defaults during the Bush era economic collapse?

The government is forcing them to make bad loans, just as I said.

No it's not. It's quite revealing that you equate lending to the non-wealthy and racial minorities as "making bad loans". As the original complaint states, the bank dropped to a $20k minimum loan amount in June 2011, and there have been no adverse consequences to the bank.

Loaning a young family $75k for a house or a business is not automatically a "bad loan" just because they're a minority or not wealthy, or because the loan isn't above $400k. As long as the family can demonstrate a steady, reliable income and show good credit worthiness, it's a good loan. And the fact that it gets them into a house or helps the start a business is good for the nation as a whole.

Nothing...absolutely nothing...in the CRA says banks have to make bad loans. The right wing is just trying to scapegoat minorities and the poor...which of course we've neeeeeeeever seen before.

[Warren Dew]

It's quite revealing that you equate lending to the non-wealthy and racial minorities as "making bad loans".

No, I equate making loans with a 41.7% default rate with making bad loans.

It's you - and granted, the Obama justice department - that is equating that to lending to racial minorities, not me.

The right wing is just trying to scapegoat minorities and the poor...which of course we've neeeeeeeever seen before.

Actually, it's the left wing that is trying to scapegoad minorities and the poor. In fact, the blame lies with government regulations and the quotas they required, as the right realizes.

[Svartalf]

We should have made wicker men full of bankers.

[Gawdzilla Sama]

We got hurt by the collapse because we mistimed buying by about a year. If we'd bought our home just a year later we'd have saved almost 100G. Oh well, it's paid for so I can't complain, but I wouldn't mind having that 100G floating in the bay as a nice sailboat.

Will you adopt me?

[Gerald McGrew]

No, I equate making loans with a 41.7% default rate with making bad loans.

And again, where does that figure come from? The bank in question has been making lower dollar loans for over a year now.

It's you - and granted, the Obama justice department - that is equating that to lending to racial minorities, not me.

Bullshit. Stop lying.

Actually, it's the left wing that is trying to scapegoad minorities and the poor. In fact, the blame lies with government regulations and the quotas they required, as the right realizes.

Ok, so we have yet another conservative who can't discuss a subject without lying. I haven't scapegoated anyone, let alone minorities and the poor.

Amazing. It seems we're directly observing the result of the right-wing echo chamber (Fox News, AM talk radio, etc.).

[Gawdzilla Sama]

The right has to lie, they got nothin'.

[Svartalf]

They could brazen it out and make their nothing a selling point... they've been touting snake oil for nealry 40years, if nor more like 150 anyway...

[Warren Dew]

No, I equate making loans with a 41.7% default rate with making bad loans.

And again, where does that figure come from?

It's from my quote on the previous page. Seriously, do I have to quote the entire thread in every post to get you to remember?

[Gawdzilla Sama]

It's hard to remember all your bullshit.l

[John_fi_Skye]

We should have made wicker men full of bankers.

Too good for them.

[Gerald McGrew]

WD,

This is the quote: "Between 2006 and mid-2011, 5.2% of Luther's single-family residential mortgage loans went to African-Americans and Hispanics, compared to an average of 41.7% for other lenders in the area", and this is what you turned it into...

Department of Justice is forcing them to make loans below that amount, which resulted in a default rate of 41.7% for other lenders

So you took the rate of other banks' loans to minorities and turned it into their default rate. So the question is, was that an intentionally racist tactic (loans to minorities = default) or were you just not paying attention?

[Gawdzilla Sama]

WD,

This is the quote: "Between 2006 and mid-2011, 5.2% of Luther's single-family residential mortgage loans went to African-Americans and Hispanics, compared to an average of 41.7% for other lenders in the area", and this is what you turned it into...

Department of Justice is forcing them to make loans below that amount, which resulted in a default rate of 41.7% for other lenders

So you took the rate of other banks' loans to minorities and turned it into their default rate. So the question is, was that an intentionally racist tactic (loans to minorities = default) or were you just not paying attention?

Racist
Right

[Warren Dew]

WD,

This is the quote: "Between 2006 and mid-2011, 5.2% of Luther's single-family residential mortgage loans went to African-Americans and Hispanics, compared to an average of 41.7% for other lenders in the area", and this is what you turned it into...

Department of Justice is forcing them to make loans below that amount, which resulted in a default rate of 41.7% for other lenders

So you took the rate of other banks' loans to minorities and turned it into their default rate. So the question is, was that an intentionally racist tactic (loans to minorities = default) or were you just not paying attention?

You're right - I picked the numbers out of the wrong paragraph. Serves me right for posting something I haven't read in a month, without rereading it first. I apologize.

On rereading, I should have cited their loss ratio of 1.75%, not the 5.2% number, but the article doesn't have a direct comparison for what the other banks were getting.