It already cost this country something like 5 TRILLION DOLLARS to bail out the ‘system’ from the last time we attempted to have ‘equity’.
How about something different? A PRE-SCREENING. If the applicant is a TOTAL LOSER, as is the case of most of the rejections, regardless of skin color, then don’t even process the application...and then it never shows up.
Ever read or see "The Big Short"? Answers lots of questions and confirmed what I predicted. Many of those default borrowers are not minority, but instead are up to their eyeballs in mortgage debt. I know of an acquaintance of ours has a very similar house that we have once had in MO (3200 SF with a FMV of 365,000) who lives in CA and that same house is over 1 million. They have 3 loans on that house - 1 is an interest only on 500k, 250k is on an ARM and the other 250k in a conventional mortgage. We made the same amount of money as a family! They couldn't afford the mortgage and are living in his parents basement making the payments on the interest only and the conventional. Defaulting on the ARM. I won't go to what kind of cars they drive - but that was also part of the problem, purchased on HELoC funds. Mortgage lenders running commercials touting that they can get you a 125% LTV loan was just plain stupid.