Yup, The Man is very happy today. Very happy indeed. Now he's got 'em right where he want's em: Back as slaves, but this time to their mortgages and his banks and hedge funds.
Shameful. "The Ownership Society" - as in "I own you, sucker!".
Black and Hispanic home buyers pay more for their mortgages than do whites, according to a Federal Reserve report released Friday.
The Fed's analysis of 2005 home lending data found that 54.7 percent of black borrowers paid a higher-than-typical interest rate on home mortgages. That was up sharply from 32.4 percent in 2004.
For Hispanics, 46.1 percent paid more than typical for their mortgages last year -- more than double the 20.3 percent reported in 2004.
In contrast, only 17.2 percent of whites paid higher interest on their home mortgages last year. However, that was up considerably from 2004's 8.7 percent.
September 09, 2006
The Man gets what he wants: Blacks and Hispanics Pay More for Mortgages Than Whites
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24 comments:
Okay, Archie, but how does that shore up against credit scores?
I'm not saying non-whites have lower credit scores, but I suspect that is the case, based on the post. I certainly do not know that and am not even suggesting it.
I'm asking, is all.
yes, it's a correlation - blacks and hispanics have lower credit scores. but also a causation, as the lower credit score trap causes higher cash payments for similar goods or assets, causing defaults
in the end, The Man wins - gets blacks and hispanics to pay more to King Whitey than Whitey, thus keeping 'em down
What was especially evil was promoting the idea from the Man's top office that everyone should rush out and buy a home (regardless of price). At the same time The Man came out with all these cool new ways to get the suckers into a loan - no down, negative am, no doc, etc.
Now, they're serfs, or they're on their way to foreclosure and bankruptcy
Checkmate. The Man wins again.
"Also, it's best to get recommendations from realtors. Realtors always align themselves with professional mortage specialists"
- I can't believe this guy is actually posting on this site. Playing right into our hands though, eh?
Richard, the WORST thing anyone could do is get advice from a realtor, especially one on the take from a mortgage broker.
Dude, jail time awaits you and anyone "aligned" with mortgage brokers. Tax evasion on unclaimed income is probably what will get you.
Nice post. Keep 'em coming. When you find yourself in a hole though, I'd recommend you stop digging.
I previously worked in residential lending for 15 years and without qualification, blacks in particular had worse credit, and too much debt, with Hispanics coming in a distant second, then whites, with the best credit applications coming from Asians, who had very little debt, great credit and always money in the bank (e.g. savings, what a concept).
Years ago while working at Home Savings of America, I was told to approve loans to minorities that would not have been approved for non-minorities. It drove me nuts.
We were also requied (by the government) to write onto the underwriting form something called the OTS gross income figure, which was what the borrower says they make, which was almost always much higher than what they actually made, and that's the figure the government would use to prove that minorities were being discriminated against. So as a borrowing group, if you simply lie about what you make, you can create the appearance of victimization. There's more to all of this, but it would only depress all of you if you knew.
Well said Anon4:13:58 about Asians in general who have savings in the bank.
You have just showed us the composition of people and how they manage their money. With that revelation, I can only say that one of the few factors that influences this attitude towards money is EDUCATION. Apparently when you have a low educational attainment, more than likely and even with best intentions, you'll screw up. The factor is CULTURE. For example, it is common by Chinese tradition to ALWAYS set aside some savings and ALWAYS live within your means. They don't believe in DEBT. If I'm not mistaken, I think they beleive DEBT is EVIL. In fact in Biblical teachings, it considers too much debt as evil. The other one that I can think of that somewhat part of culture is that Asians are PATIENT, while typical Americans are NOT. When an Asian wants to buy something, he/she will save for that; while Americans will buy it first through credit and pay it later. There's a big difference.
Hey liberal pukes, did the report include the credit scores?
Oh, the credit scores are biased too!
When I got my mortgage years ago the banks lending officer (fancy that no scum mortgage broker...) He asked my for my race. Knowing this was some affirmative action scam I said I would not provide it. He said he was required to put it down BY THE GOVERNMENT and if the borrow does not "offer" the information, he is to guess by MY PHYSICAL APPEARANCE!!! I am white as the driven snow, so he put down "white", thus increasing the pressure on his bank to make another loan to a non-white with poorer credit than me...
What a scam!
I agree with Bill Cosbey, the solution is not more laws to force an equal outcome (affirmative action), but culture. Change the culture to value work, education, saving, investing, and you correct the problem.
Dumb people pay more for loans.
There are a few dumb whites that beleive that 5 points for a loan is a good deal, a lot of dumb hispanics that beleive this and even more dumb blacks (Asians are almost all good with nomey and I doubt that even one Asian has ever paid 5 points for a loan).
P.S. So much for "racisim" I saw a study that said over 90% of the blacks and hispanics that were getting screwed with ecpensice loans were getting screwed by fellow blacks and hispanics. Asian loan officers would love to make 5 points on every re-fi, but his fellow Asians are all too smart...
"The three most powerful black people in the country, Clarence Thomas, Colin Powell, and Condolezza Rice are shunned by the black community. 'They're not really black.'"
Clarence Thomas: Scalia clone
Colin Powell: lied about WMD
Condolezza Rice: yes woman, war-mongering conservative idealouge
All: profited from affirmative action, and now sleeping with the enemies of affirmative action.
That's what "not really black" means, Mr. Expert who is obviously ignorant of the large number of middle and upper class blacks, some going back generations.
Class warfare has replaced race in our country. Are well-heeled minorities signing up for those toxic loans? Are you trying to create a Catch-22 where all middle-and-upper folks are part of white culture? Do you know anything about black history? For starters - Booker T. Washington and W.E.B. DuBoise? It isn't taught in the schools, but you're a big boy now. Before you spout off, get fully educated.
Well said Richard, Realtor.
The main problem (especially here online) is that many of these posters suffer from a social disorder called S.A.D. They trust what they read online (many scams), shore-up their opinions with others who have the same disorder and completely withdraw from personal contact and trust of anyone and anything they fear or don't understand. The best course of action is to follow the advice of well established Real Estate Professionals. Those who can be trusted, have a proven record of success, have many, even hundreds of active refrences, and work closely with other professional in the industry to assure smooth trouble free transactions.
Peace Out!
---That's what "not really black" means, Mr. Expert who is obviously ignorant of the large number of middle and upper class blacks
The idea is that upper class African-Americans conform to white culture more than the lower classes. That's where the resentment comes from.
And just like south Indians, who call themselves the "new eastern European Jews" in America, behave more white than an American of colour (hispanic or black). And this phenomena has been witnessed in Indian to Black interactions in the South Pacific, South Africa, and Caribbean/Guyana regions where even though south Indians, having at most a Persian-esque nose and straight hair, have the same exact skin tone as dark Sudanese Africans but see themselves as more "white" than them and therefore, better and more successful along with tribal characteristics involving group identification and caste.
Credit score from whom? 3 groups of shysters who can't figure out that most people won't be living at 4 different addresses at the same time.
The fact that these people can, with impunity, SELL misinformation which materially damages individuals should tell you that something is wrong with the legal situation. Ask anyone who has gone through the nightmare of identity theft and tried to correct that misinformation.
This cabal of 3 credit reporters, many bill collectors, and irresponsible lenders screws people everyday.
If it is illegal and improper to lend based on racial bias it should also be illegal to do so on the basis of an inaccurate credit report.
Maybe there is or is not some truth about the financial habits of various ethnic groups but the responsibility to protect oneself lies with the lender first and foremost.
DAMN WHITEY!!!!!!
"Also, it's best to get recommendations from realtors. Realtors always align themselves with professional mortage specialists.".......so says THE REALTOR.
Normally I would respond "stop drinking the Kool-Aid" but you ARE the "Kool-Aid".
No conflict of interest here folks....move along.
I live in one of the great bubble cities in Calif. I get a list of the default notices every week, 70% of the names are Hispanic. I think that most of the loan's are no doc fraud loans. Am I supposed to feel sorry for the Hispanic's for loseing the house that they never qualified for? I hope they get disgusted and go back to Mexico.
"The idea is that upper class African-Americans conform to white culture more than the lower classes. That's where the resentment comes from."
Other anon - thanks, I think you said that better. That troll set me off on a rant. Thus the class problem in America is be or will soon outstripping any race problems.
This brings up a question, and it's not rhetotical. I suspect that many people can be manipulated by false promises of upward mobility - the Horatio Alger myth. Middle and upper class people will side with the ultra rich in hope that they, too may become Masters of the Universe. Just a hunch.
Folks heading to foreclosure and bankruptcy are typically there for making poor choices not because of their ethnicity. The lower your score the higher the rate. Regardless of your race.
"I suspect that many people can be manipulated by false promises of upward mobility - the Horatio Alger myth."
One of the pillars of strength in the Republican party of Reagan and Bush the elder was that the successful professional class would side with the corporate titans because it was to their benefit to not distribute the wealth (i.e. Democratic/socialist forum) because they'd have access to the keys of the kingdom in their due time. Today, that notion's fallen off the cliff with globalization. There'll be a much smaller professional class moving forward.
:When an Asian wants to buy something, he/she will save for that
You may want to make a trip out to Singapore, Japan, and South Korea. The consumerism there is just like in America.
Illegal Mexicans that are here to begin with out of felony fraud are typically going to skip town on a mortgage when they either get deported (yea, that would be nice!) or find anothe gig and need to load up the rental truck and take it to the next town. Who wouldn't want to loan money to these third world gypsy frauds!
I'm leaving it all for the wonderful DIVERSITY of illegal aliens, and the crime, filth, and vulgarity they bring.
I bought a house in Thailand...will be moving there in December and telecommuting. Thailand isn't perfect, but is a hell of a lot better than MEXICO, which is what the US has become.
Goodbye. Enjoy the housing bubble/Hillary/Bush/war/high taxes/illegal aliens...and learn to speak Spanish!
:Thailand isn't perfect
Actually, it's a fabulous place for an ex-pat to live in, just as long as you're ok with a two tier pricing system, local and farang.
To: Anon from Home Savings of America
20 years in the lending business myself and I concur with your statements. In general terms you are right on the money where overall credit worthiness is concerned by ethnic group.
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