Skip to comments.Bernanke: Minority homebuyers face discrimination
Posted on 11/15/2012 1:03:30 PM PST by rightwingintelligentsia
NEW YORK (CNNMoney) -- The housing crisis hurt low-income communities and minorities more severely than other groups, Federal Reserve Chairman Ben Bernanke said Thursday.
"Lower-income and minority communities are often disproportionately affected by problems in the national economy, and the effects of the housing bust have followed that unfortunate pattern," Bernanke said in prepared remarks presented at the Operation HOPE Global Financial Dignity Summit in Atlanta.
Bernanke pointed to homeownership rates for African Americans, which fell 5 percentage points over the last eight years, compared to a 2 percentage-point drop for other groups.
While there has always been a gap in homeownership rates between white and black households, that gap has recently grown wider. The homeownership rate was 44% for blacks and 74% for whites as of September, according to the Census Bureau.
(Excerpt) Read more at money.cnn.com ...
Gee—I wonder if the fact that minority and poor women are having multiple babies out of wedlock has any bearing on their economic level.......
TZ’s easy guide to leftist housing terms:
“predatory lending”=loaning money
Hey, I’ve got an idea. Let’s make sure every last ‘minority’ gets into a new home with a nothin-down, no-doc, government-backed mortgage. What could possibly go wrong?
re: “’Lower-income and minority communities are often disproportionately affected by problems in the national economy, and the effects of the housing bust have followed that unfortunate pattern,’ Bernanke said in prepared remarks presented at the Operation HOPE Global Financial Dignity Summit in Atlanta.”
The same ol’ crap, Lord Above, must we go through this AGAIN!!
SOS Same old Sh-—stuff.
“Uh-oh. Here we go again.”
Isn’t this how the whole housing mess started??? OMG! I can’t take this anymore.
Does the discrimination still exist when you consider income level?
Just tax the “rich” some more. Oh, and hand out free condoms.
I can remember back when I was young and wanted a new house, motorcycles, boats, RVs, lavish vacations........ Somehow, I knew then that I would somehow have to climb out of low-income status to get all those things.
Under Dodd/Frank the government will tell lenders what is a “Qualified Mortgage” and what and how and to whom they can loan money. Violations can punished with jail time.
At the same time, government has regulations and, er, strong recommendations, to lenders to lend to poorer folk - write a “Not Qualified Mortgage.”
It is not a good time to be in the mortgage lending business.
What is encouraging, if anything, is that there are still banks not in the government program, who can loan based on their own judgement. This Free World needs to increase and spread to all industries and communities.
Good idea, but we need a name for it, why don't we call it something catchy like ObamaHousing?
The Bernanke is now grasping at straws. Banks need to free up lending “standards” again? He must know his QE failed.
Let’s just build large multi-apartment public housing projects in every big city and subsidize the rent. What could go wrong?
“I found out a long time ago if I emulated what successful people did I would become successful.”
That’s the winning post of the day.
Bush's Fault my A##!
That's all the further I had to read. Thank you.
If we learn nothing from history, we're doomed to repeat it, as is proof in our re-electing Obozo. We, as a nation, might be to stupid to govern ourselves anymore. But I suppose that was part of the liberal plan 60 years ago. Make them so stupid, they'll vote themselves into irrelevance. - Mission Accomplished!
Banks should post new loan notices that start with, "NOTICE: Our loan policy discriminates against applicants that will not be able to afford to pay our money back to us."
Sounds like a great idea. Don’t forget to put some democrat party hacks in charge of the program. Maxine Waters has some relatives who are available to run the program. Also, we need to make loans to people without social security numbers. People who have multiple identities need mortgages too. What could possibly go wrong? /s
Eddie Murphy Voiceover: Slowly, I began to realize that when white people are alone, they give things to each other for free.
[ cut to Eddie at a bank, talking to a black Loan Officer, discussing budgeting and other money matters ]
Loan Officer: Now, let me get this straight, Mr., ..uh.. Mr. White. You’d like to borrow $50,000 from our bank, but you have no collateral, you have no credit. You don’t even have any I.D. Is that correct?
Eddie Murphy: That’s right.
Loan Officer: Mr. White, I’m sorry. This is not a charity. This is a business...
White Loan Officer: Uh, Harry, why don’t you, uh, take your break now? I’ll take care of.. uh.. Mr. White.
Loan Officer: Well.. okay. Thanks, Bob. [ exits ]
White Loan Officer: [ laughs, then sits ] That was a close one, wasn’t it?
Eddie Murphy: It certainly was.
White Loan Officer: We don’t have to bother with these formalities, do we, Mr. White? Huh?
Eddie Murphy: What a silly Negro!
White Loan Officer: Just take what you want, Mr. White. Pay us back anytime. Or don’t. We don’t care.
Eddie Murphy: Tell me, do you know of any other banks like this in this area?
Bull. Giving these mortgages to people who couldn’t afford these houses overinflated the prices for the people who could have afforded them without the artificial boost. Now those people are stuck with houses that aren’t worth a crap.
“Bernanke: Minority homebuyers face discrimination”
STFU!! I have really had it with this lame old tune!
Ditto: that was my first thought.
Oh here we go again...1977 all over.
This is why the crash needed to be investigated! This is why appropriate blame needed to be affixed!
Yo bro...they blamed the banks for bad loans, when the issue was BAD REGULATIONS that forced them to load the money!
Holy crap, no!!!! People who cannot afford to buy houses should not buy houses! It is retardeadtion to try to throw an ethnicity or gender into it. PEOPLE who can’t afford it, shouldn’t!
What is the difference between low income and minorities? The article made the distinction by using both terms.
“Lower-income and minority communities are often disproportionately affected by problems in the national economy, and the effects of the housing bust have followed that unfortunate pattern,”
That’s putting the cart before the horse! They are a significant part of the CAUSE, not the EFFECT.
The Bernank has a major reality or dishonesty problem - either way he needs to go.
I think there was a joke headline from the NYT in National Review a long time ago:
Nuclear War Devastates USA- poor hit hardest!
We did this once already - forcing banks to extend mortgages to unqualified applicants simply because those applicants are Black led to the banking crisis.
Now the Marxists in Washington are going to do the same thing all over again???
Obama’s really in a hurry to destroy the American economy and usher in the revolution, isn’t he.
Holder is already suing banks for “disparate impact.” Banks have quotas on lending to minority even if their credit sucks.
People of Color....for the last time, here are the simple rules for a successful life:
Graduate from high school
Don’t get arrested
Stay sober and drug-free
Have children AFTER marriage
Do all of these and you can buy a friggin’ house! And have a job. And do all those other “white” things that you are so jealous of!
The mortgage. Kind of a problem in the first place. Just give them the deed right off the bat, no mortgage to worry about. Then go ahead and waive their property taxes when they go unpaid. Rebuild for them when a fire burns it down and they have no insurance. Give them more, more more... because otherwise some dolt like Bernanke will say that the only reason they don’t own their own homes like millions of hard-working, tax-paying Americans, is due to they face racial discrimination.
It took me (hubby, too) (due to kept getting laid off from jobs.). years to build up my credit-then when it was there, most of the time I got turned down for either not making enough or making too much. Please, give it a rest. Get good credit, a job.. show the lender what you are made of ..No one gave me a free ride. Nobody-no family-they said, work for it. I did. Hubby did as well. As long as we can afford it, we chose to live in a community that the crime is low than on another section of town where he crime is high. Been there, done that.
Re the Eddy Murphy skit at the bank:
Murphy thought he was being a comedian at the time. If he had reversed the colors, he would have been a prophet.
I don’t understand this push to saddle poor people with a mortgage. There is a benefit to not being a homeowner also. You are a lot more mobile. A renter can pull ip stakes a lot easier than someone who has a house they have to put on the market and hope it sells so they can move somewhere where the jobs are. I guess if you don’t work than that is not a problem.
Another thing we can thank Bush II for - another appointee of his.
Thank you for posting the information about your father and you, on your profile page, and thanks to your father and you for your love of our country. (I refuse to call our country the obsequious whitepaper term, “the homeland,” that some Inside The Beltway [thoughtless] “Think Tank” dreamed up!)
The only discrimination minorities or anyone else faces in securing a mortgage is employment status and credit rating.
Bad life choices and just bad luck will affect both of the aforementioned points of discrimination. There should be no expectation of equal outcomes in this country only equal opportunity.
Ben Bernanke. Another gift to the American people of George W. Bush that keeps giving.
That appears to be the current scam with all these mortgage commercials. They get $450 bucks and you get no refinancing..............
A thirty year loan is 3.34% that is for everyone. The sub prime mess was that lower income people where given a higher credit score so they could qualified. Is Bernanke talking about a second loan to cover down payments? Or a low credit score should not pay a higher interest.
Hey. . .yea. . and then we can bundle all those loans and sell them to banks that are too big to fail! BEAUTIFUL!!
Well said! In my life I've had neighbors that I'd hesitate to lend a lawn rake! It is not a matter of skin color it's your character that counts.
VIDEO OF ANDREW CUOMO STARTING THE HOUSING MELT DOWN!
CUOMO: To take a greater risk on these mortgages, yes. To give families mortgages that they would not have given otherwise, yes.
Q: [unintellible] that they would not have given the loans at all?
CUOMO: They would not have qualified but for this affirmative action on the part of the bank, yes.
Q: Are minorities represented in that low and moderate income group?
CUOMO: It is by income, and is it also by minorities? Yes.
CUOMO: With the 2.1 billion, lending that amount in mortgages which will be a higher risk, and Im sure there will be a higher default rate on those mortgages than on the rest of the portfolio
(more at link)
Good and I hope none of these unqualified get a home. I started out very very poor. Hardly a dime in my pocked and worked my ass off getting to a position to qualify to buy a home. And it was a very small house to start with.