Yeah, because that worked so well the first time…

From Bloomberg Business Week:

Renewed Crackdown on Redlining

In the wake of the subprime implosion, the Obama Administration has stepped up its scrutiny of disadvantaged neighborhoods’ credit access.

"The agencies have refocused on redlining because, in the wake of the subprime explosion and sudden implosion, they are looking at these disadvantaged neighborhoods and not seeing any credit access…"

No shit Sherlock…

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2 Responses to “Yeah, because that worked so well the first time…”

  1. Joe Says:

    What is so damned hard to understand? 6 years or so ago we were looking at buying a house and our bank, without even doing any paperwork approved us for $400k. I told them I didn’t want but $175k tops and they actually told me they wouldn’t approve a loan for less than $300k. Didn’t even give a shit about what I felt I could afford. I walked away. When we finally did look at buying a house, mid housing disaster 2 years ago we went with another lender and they did lots of research beofre preapproving us for $175k. He said he could go higher but figured that is all I needed. Obviously I said thank you and stuck with them. He actually told me later that they have had NO foreclosures because they only lend what people can afford to pay. Go figure.

    • T.S. Nunya Says:

      Yeah, I know people who went through bankruptcy proceedings in the late ’90s and within five years were living in way more home than they could afford and complaining about all the pre-approved credit cards they were getting in the mail. Needless to say those homes were foreclosed on and those people are now paying a level of rent that is within their means. Funny how landlords are careful like that.

      During the bubble years I also knew a kid in his late early twenties who was mortgage broker. He told me banks gave him a commission for loans he made, but there was no penalty if the loan ever went bad. So he absolutely did not give a shit about the creditworthiness of the borrower. In his mind, that was up to the banks and they didn’t seem to care. All he cared about was the fact that he was a high school graduate making six figures while most of his friends were wasting their time and money in college.

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