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Antiquarianism in Action: Biden Administration Announces Campaign Against Clear and Present Danger of ... Redlining
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From the Washington Times news desk:

Biden DOJ unveils plan to crack down on discriminatory financial lenders

By Emily Zantow October 22, 2021

Attorney General Merrick B. Garland on Friday announced a new Justice Department initiative to crack down on discriminatory financial lending practices.

During a news conference, Mr. Garland said the initiative will target illegal “redlining,” which occurs when a lender denies services to someone based on his race or ethnicity.

Under the initiative, the Justice Department will ramp up efforts to investigate and file fair lending lawsuits under the 1968 Fair Housing Act and the 1974 Equal Credit Opportunity Act, which prohibit discriminating against someone based on race, religion, age or sex. …

A Justice Department spokesman mentioned two redlining cases filed in August against Trustmark National Bank and Cadence Bank, when asked by The Washington Times how many reports of redlining the agency has received, and how many related cases it has filed, in the last year. The spokesperson said the agency “can only report on cases that are public.”

… Mr. Garland said redlining is contributing to the nation’s big racial wealth gap, which is “clearly reflected in current homeownership rates.”

The country’s homeownership rate is 65.4%, with White non-Hispanics at the highest rate (74.2%) and Blacks at the lowest rate (44.6%), according to Census Bureau data from the second quarter of 2021.

When they demand “equity,” they have a very specific type of equity foremost in mind: your home equity.

The new initiative adds to the Biden administration’s efforts to increase minority homeownership. House Democrats are working to pass a \$3.5 trillion package that would expand the social safety net and currently includes \$300 billion for housing programs.

Future policy changes in the works include a major crackdown on lenders and realtors who subliminally dissuade and traumatize blacks from borrowing by including in their ads red lines, the traditional symbol of racist hate, such as:

The red line in this ad is as obviously intended to terrorize blacks as, say, a loop at the end of a NASCAR garage door pull rope that vaguely looks like a noose to somebody who doesn’t know anything about knots.

Here’s another example of a lender succeeding in leaving blacks too emotionally exhausted to fill out mortgage paperwork with a red line:

Future steps may include outlawing the color red and/or lines of any color.

To fight the onrushing menace of redlining, no steps are too psychotic.

 
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  1. Heads, you’re discriminatory. Tails, you’re predatory.

    The house wins either way.

    • Agree: bomag, res
  2. If they start applying the logical fallacy of Disparate Impact to this, all bets are off. That can be the only reason anybody, Garland included, could ever conclude that any lenders are redlining in 2021.

    Lenders just want to lend money. They are incentivized to do so. That is how they make their money and bonuses. All they do is fit applicants into the categories like debt-to-income, credit history, loan-to-value. Simple, colorblind arithmetic.

    • Replies: @Mike Tre
    @Buzz Mohawk

    "Lenders just want to lend money."

    I would add that they want to lend money.. to those who can eventually pay it back.

    Replies: @Buffalo Joe, @bomag, @Buzz Mohawk

    , @bomag
    @Buzz Mohawk

    Agree here.

    And we have the fallacy of gov't telling us there is money left on the table, so they are going to force us to pick it up.

    If there is so much money to be made lending money to blacks for homes, maybe Garland et al should start a side gig and rake in all that obvious $$$.

    Replies: @Buzz Mohawk

  3. And when is somebody going to do something about that Hitler fellow? He needs to be taken down a peg.

    • Agree: Mike Tre
    • LOL: bomag
    • Replies: @Polistra
    @Jack Armstrong

    Well, he did just lose a presidential election. Isn't that enough?

    , @Hypnotoad666
    @Jack Armstrong

    "You know, with Hitler, the more I learn about that guy, the more I don’t care for him.”
    — Norm MacDonald

  4. Inflation, high crime and empty store shelves, always ask: WWVD? What would Venezuela do? Why, make low interest loans! Check.

    • Agree: bomag
  5. How does this conflict or align with “red flagging”? Like for mad girls and stuff?
    I think Ivan and Chang need to modernise their visuals.
    Could unintentionally offend their pets, who were gradually introduced to rot the US from the inside out.

  6. Biden is a dynamic leader, forging new paths for an America that’s Building Back Better. With the menace of Redlining dispatched, he must follow the lead of fellow Emperor Charles I of Austria-Hungary, and outlaw dueling.

    Interracial dueling, I mean. Or some other existential-crisis-issue demanding a laserlike focus from the nation’s executive officer. Failing to recycle glass bottles, oppressive use of pronouns, wearing white after Labor Day, whatever.

    Senility, I hear that can be a big problem.

    • Replies: @Polistra
    @ic1000

    Current NYT Magazine Cover.

    https://i.ibb.co/Pgn8knb/Screenshot-20211022-234533-Chrome.jpg

    Replies: @International Jew

    , @bomag
    @ic1000

    Is it a thing where countries under stress bring in senile/incapable leaders?

    I'm thinking of Hindenburg in Germany; various Roman emperors.

    In the case of the various Communist regimes, they brought in evil people.

  7. So now we’ll all have to pay higher interest rates to cover black defaults.

    This gets old, you know.

    We get policed more heavily so that black crime can be deterred.
    We pay more for insurance because blacks crash more.
    We pay more to eat out because blacks skip out on the bill.
    We pay more for municipal utilities because black employees dick off, don’t work at all, or fraudulently claim disability.
    We…

    And somehow we owe blacks something? Oh, au contraire…

    • Agree: Buffalo Joe, bomag
  8. If you are ever asked to indicate your race when applying for a loan, remember to put yourself down as black. Even if you’re applying for a loan in person, the odds are the lender won’t challenge you, and may even be grateful to you for letting them claim to have lent to another black person. We need to start undermining this system whenever we can.

    • Replies: @Mike_from_SGV
    @Wilkey

    And the next time I'm asked to state my (1 of 37 choices) gender on a form, I think I'll put 'queer', because being a (what used to be) normal man in New America does indeed make me queer.

  9. @Buzz Mohawk
    If they start applying the logical fallacy of Disparate Impact to this, all bets are off. That can be the only reason anybody, Garland included, could ever conclude that any lenders are redlining in 2021.

    Lenders just want to lend money. They are incentivized to do so. That is how they make their money and bonuses. All they do is fit applicants into the categories like debt-to-income, credit history, loan-to-value. Simple, colorblind arithmetic.

    Replies: @Mike Tre, @bomag

    “Lenders just want to lend money.”

    I would add that they want to lend money.. to those who can eventually pay it back.

    • Replies: @Buffalo Joe
    @Mike Tre

    Mike, you too funny. Pay back loans. Where did you get that idea?

    Replies: @Polistra, @Mike Tre, @Mike_from_SGV

    , @bomag
    @Mike Tre

    ...to those who can eventually pay it back

    Indeed, but today's ethos is to crash our ships upon the rocks of unobtainable equality.

    , @Buzz Mohawk
    @Mike Tre


    I would add that they want to lend money.. to those who can eventually pay it back.
     
    That's where debt-to-income ratio and credit history come in. The former measures how much they can afford to pay back, and the latter tells you how well they have paid back borrowed money in the past, including credit card debt.

    A credit report says a lot about a person.

    The numbers don't lie, and black applicants typically score lower on these scales.

    Disparate Impact, which apparently a lot of judges -- who should know better -- use as a false logic, says those black applicants are being discriminated against simply because of their race, when in fact they just, on average, don't do a very good job of paying back borrowed money.

  10. I don’t know anything about buying a house.

    But couldn’t people avoid redlining by applying for online mortgages? Nobody sees what you look like then. How would they know your race if you didn’t tell them?

    Also in this era of choice, if one place turned you down couldn’t you just try another?

    I am actually confused about how redlining can still exist. Isn’t it also a crime of conspiracy because all the places to get mortgages in an area agree not to give a mortgage to say black people? Are there still areas where those conspiracies are going on? How can they be making such a fuss when they can only name two banks charged in the past year?

    When I think how much less education and income other groups have compared to whites, keeping in mind gentrification and the general recent leap of real estate prices, these seem in and of themselves enough to keep black ownership rates down a lot. The number of one income households vs. two would be another factor and lack of child support too.

    In this new era of inflation and people bidding for more than list price, this seems like empty and pointless gesture to me.

    • Replies: @Cortes
    @notsaying

    Name: Michael Jordan = pass

    Name: La’Qis’ha Jordan = pass?

    , @Wade Hampton
    @notsaying

    The historical redlining meant identifying neighborhoods within which banks would not make mortgage loans; the idea was that a red line would be drawn around a neighborhood on a map. The redline was based on a street address of the house, not the skin color of the mortgage applicant.

    The position of the red line would be based on the lack of creditworthiness of the inhabitants. Since blacks were poor and bad at managing credit, their neighborhoods were often redlined. Banks not wanting to loan to deadbeats is somehow considered proof of racism on the part of the banks.

    Today mortgages are granted based on the credit history of the applicant and the appraised value of the house. I doubt there's any of the geographic redlining going on today, but the impact is more or less the same.

  11. @notsaying
    I don't know anything about buying a house.

    But couldn't people avoid redlining by applying for online mortgages? Nobody sees what you look like then. How would they know your race if you didn't tell them?

    Also in this era of choice, if one place turned you down couldn't you just try another?

    I am actually confused about how redlining can still exist. Isn't it also a crime of conspiracy because all the places to get mortgages in an area agree not to give a mortgage to say black people? Are there still areas where those conspiracies are going on? How can they be making such a fuss when they can only name two banks charged in the past year?

    When I think how much less education and income other groups have compared to whites, keeping in mind gentrification and the general recent leap of real estate prices, these seem in and of themselves enough to keep black ownership rates down a lot. The number of one income households vs. two would be another factor and lack of child support too.

    In this new era of inflation and people bidding for more than list price, this seems like empty and pointless gesture to me.

    Replies: @Cortes, @Wade Hampton

    Name: Michael Jordan = pass

    Name: La’Qis’ha Jordan = pass?

  12. Mr. Garland said the initiative will target illegal “redlining”

    School districting is legal redlining. In any case, Garland’s announcement is great news for lawyers and lobbyists.

  13. A ‘fair housing’ organization in my city is suing a local bank saying it is engaging in redlining because it closed a handful of physical branches in predominantly black area and is averaging something like just 4% of its loan originations to black borrowers while similar banks are more like 14%…although this is just over a 2 year period. Obviously something must be done so this bank stops missing out on the amazing business opportunities involved in putting out more of its depositors’ assets out as loans to the least creditworthy group in America.

    It seems obvious to me in all the virtual ink being spilled about this that all you have to do is introduce data on FICO scores and a lot of the reasons for ‘redlining’ will become obvious. Even taking that into account, I believe I have read in the past that even black borrowers with solid credit scores default at higher rates than other groups (although I think Latinos were not much better).

    • Replies: @res
    @Arclight


    It seems obvious to me in all the virtual ink being spilled about this that all you have to do is introduce data on FICO scores and a lot of the reasons for ‘redlining’ will become obvious. Even taking that into account, I believe I have read in the past that even black borrowers with solid credit scores default at higher rates than other groups (although I think Latinos were not much better).
     
    Some more about this in Steve's post here and the ensuing comments. I think the conclusion of this comment there (critiquing a study which found discrimination) is worthwhile. I also think the point in bold (added) does not get made nearly often enough.
    https://www.unz.com/isteve/those-who-never-noticed-the-past-are-condemned-to-repeat-it/#comment-2210446

    They included a number of borrower/loan/property/economic/geographic variables in their analysis (including FICO score), but one glaring absence (unless I missed it, but Table 1 seems clear about the variables) is data on assets and liabilities: https://budgeting.thenest.com/assets-liabilities-home-loan-application-28222.html
    Given the racial differences in average net worth that seems like an important omission.

    I also wonder about how much of the effect they observe is due to differing levels of financial savviness rather than race. I am pretty sure most lenders would be happy to sell a more expensive loan to anyone if they could.

    This study also does not consider default, expected loss, etc. so we can’t use that to check the “fairness” of the underwriting.

    There does seem to be a clear split between studies not finding discrimination looking at default, expected loss, etc. and studies finding discrimination ignoring variables like FICO score (Steve’s post) or net worth (the paper above).
     

    Replies: @Arclight

  14. Anon[423] • Disclaimer says:

    This is what happens then the DOJ has nothing to do. Biden has given orders that immigrants, blacks, Mexicans, Antifa, and other members of the Democratic base are not to be prosecuted for anything. Since most whites are law-abiding, and a very high number of conservatives are, that means the DOJ is pretty bored and trying to think up stuff to justify its budget.

  15. @Mike Tre
    @Buzz Mohawk

    "Lenders just want to lend money."

    I would add that they want to lend money.. to those who can eventually pay it back.

    Replies: @Buffalo Joe, @bomag, @Buzz Mohawk

    Mike, you too funny. Pay back loans. Where did you get that idea?

    • Replies: @Polistra
    @Buffalo Joe

    That was the idea before securitization. In recent times only the bare minimum of diligence is exercised, which is one reason we keep getting into such colossal messes. The loans are immediately sold off, then sliced and diced and sold to investors and pension funds.

    Meanwhile, it's an open secret in the lending sector that even these loose standards are stretched past the breaking point whenever POC borrowers are involved. But it's never enough. And it's one of many reasons why POC default rates are always sky-high, and never documented in the MSM.

    Replies: @Buzz Mohawk

    , @Mike Tre
    @Buffalo Joe

    Well these two big dago's showed up at my door once after I came up short on my vig. They gave me a very good idea as to where! The good news is I learned to type with my toes for a while.

    Replies: @Buffalo Joe

    , @Mike_from_SGV
    @Buffalo Joe

    In New America, the requirements for banks are two:
    1. Lend money to people who can pay it back.
    2. Lend money to bLACKS and other Numinous Minorities.

  16. Please, the current government has trillions to spend. I say pay reparations. We will have all the money back before biden’s term is over. Money is meant to spent, not saved. Wealth, too funny.

  17. @Jack Armstrong
    And when is somebody going to do something about that Hitler fellow? He needs to be taken down a peg.

    Replies: @Polistra, @Hypnotoad666

    Well, he did just lose a presidential election. Isn’t that enough?

  18. @ic1000
    Biden is a dynamic leader, forging new paths for an America that's Building Back Better. With the menace of Redlining dispatched, he must follow the lead of fellow Emperor Charles I of Austria-Hungary, and outlaw dueling.

    Interracial dueling, I mean. Or some other existential-crisis-issue demanding a laserlike focus from the nation's executive officer. Failing to recycle glass bottles, oppressive use of pronouns, wearing white after Labor Day, whatever.

    Senility, I hear that can be a big problem.

    Replies: @Polistra, @bomag

    Current NYT Magazine Cover.

    • Replies: @International Jew
    @Polistra

    Our State isn't exactly neutral in the culture wars.

    Replies: @Buzz Mohawk

  19. @Buffalo Joe
    @Mike Tre

    Mike, you too funny. Pay back loans. Where did you get that idea?

    Replies: @Polistra, @Mike Tre, @Mike_from_SGV

    That was the idea before securitization. In recent times only the bare minimum of diligence is exercised, which is one reason we keep getting into such colossal messes. The loans are immediately sold off, then sliced and diced and sold to investors and pension funds.

    Meanwhile, it’s an open secret in the lending sector that even these loose standards are stretched past the breaking point whenever POC borrowers are involved. But it’s never enough. And it’s one of many reasons why POC default rates are always sky-high, and never documented in the MSM.

    • Agree: Redneck farmer
    • Replies: @Buzz Mohawk
    @Polistra

    Correct. At the retail level, which is what all this is about, lenders are salesmen who don't care if their loans ever are paid back. When interest rates are low and people foolishly want to spend their home equity on copper sinks and marble bathrooms, it's a gold mine.

  20. Anon[127] • Disclaimer says:

    Lender “racial discrimination” these days tends to be the equal application of rational lending policies to everyone, such as credit score, income and job history, amount of loan relative to other living expenses, late repayment and default history, bankruptcies, court judgments, savings history, and current indebtedness.

    But “equal” is not “equitable” in the current environment. To achieve equity you need to approve loans in a way where the result is racial population proportionality. These days you are expected to unequally apply standards in such a way “to affirmative action” loan applications into proportionality.

    Having said that, I am sure that in borderline cases race may still be considered, subconsciously perhaps, when the lender feels in his gut that a black borrower will be more likely to default, and the question there is, are such calls discriminatory, or is the behavior of blacks less on average less likely to result in repayment? If, statistically, blacks are materially less likely to honor their obligation to repay, on the one hand, taking it into account is rational, but on the other hand, yeah, you aren’t really allowed to use it in tie-breaker decisions in our system.

    Typo P.S.:

    leaving blacks to emotionally exhausted

    ==> “too”

    • Replies: @Steve Sailer
    @Anon

    One complaint after 2008 was that lenders were lending too much in black neighborhoods, that Countrywide saw white Santa Monica as a place where it was hard to make more than a small profit on a loan, but in Inglewood or Compton, it was easy to put the locals into high profit mortgages.

    Replies: @Wade Hampton

  21. @Jack Armstrong
    And when is somebody going to do something about that Hitler fellow? He needs to be taken down a peg.

    Replies: @Polistra, @Hypnotoad666

    “You know, with Hitler, the more I learn about that guy, the more I don’t care for him.”
    — Norm MacDonald

  22. @notsaying
    I don't know anything about buying a house.

    But couldn't people avoid redlining by applying for online mortgages? Nobody sees what you look like then. How would they know your race if you didn't tell them?

    Also in this era of choice, if one place turned you down couldn't you just try another?

    I am actually confused about how redlining can still exist. Isn't it also a crime of conspiracy because all the places to get mortgages in an area agree not to give a mortgage to say black people? Are there still areas where those conspiracies are going on? How can they be making such a fuss when they can only name two banks charged in the past year?

    When I think how much less education and income other groups have compared to whites, keeping in mind gentrification and the general recent leap of real estate prices, these seem in and of themselves enough to keep black ownership rates down a lot. The number of one income households vs. two would be another factor and lack of child support too.

    In this new era of inflation and people bidding for more than list price, this seems like empty and pointless gesture to me.

    Replies: @Cortes, @Wade Hampton

    The historical redlining meant identifying neighborhoods within which banks would not make mortgage loans; the idea was that a red line would be drawn around a neighborhood on a map. The redline was based on a street address of the house, not the skin color of the mortgage applicant.

    The position of the red line would be based on the lack of creditworthiness of the inhabitants. Since blacks were poor and bad at managing credit, their neighborhoods were often redlined. Banks not wanting to loan to deadbeats is somehow considered proof of racism on the part of the banks.

    Today mortgages are granted based on the credit history of the applicant and the appraised value of the house. I doubt there’s any of the geographic redlining going on today, but the impact is more or less the same.

  23. @Anon
    Lender "racial discrimination" these days tends to be the equal application of rational lending policies to everyone, such as credit score, income and job history, amount of loan relative to other living expenses, late repayment and default history, bankruptcies, court judgments, savings history, and current indebtedness.

    But "equal" is not "equitable" in the current environment. To achieve equity you need to approve loans in a way where the result is racial population proportionality. These days you are expected to unequally apply standards in such a way "to affirmative action" loan applications into proportionality.

    Having said that, I am sure that in borderline cases race may still be considered, subconsciously perhaps, when the lender feels in his gut that a black borrower will be more likely to default, and the question there is, are such calls discriminatory, or is the behavior of blacks less on average less likely to result in repayment? If, statistically, blacks are materially less likely to honor their obligation to repay, on the one hand, taking it into account is rational, but on the other hand, yeah, you aren't really allowed to use it in tie-breaker decisions in our system.

    Typo P.S.:

    leaving blacks to emotionally exhausted
     
    ==> "too"

    Replies: @Steve Sailer

    One complaint after 2008 was that lenders were lending too much in black neighborhoods, that Countrywide saw white Santa Monica as a place where it was hard to make more than a small profit on a loan, but in Inglewood or Compton, it was easy to put the locals into high profit mortgages.

    • Replies: @Wade Hampton
    @Steve Sailer

    The cause of the 2008 financial crisis was Bill Clinton's 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).

    This policy blew massive liquidity into housing, particularly loans to deadbeat borrowers, generating a massive bubble in real estate. The policy took a little while to mature, but when it finally did in 2008 the bubble burst.

    The Federal Government was the cause of the disastrous 2008 financial collapse. We are riding a massively larger bubble today across most all asset classes, the causes of which are FedGov deficit spending enabled by Federal Reserve money printing. And the coming collapse will be massively larger as well.

    John Allison, former chairman of BBT, has a series on the 2008 collapse. Much of what he says is applicable to today. Below is part 1.

    https://www.youtube.com/watch?v=aSxA-vtjRx0

    Replies: @Art Deco

  24. Everyone is worried about their credit score and it’s implications about lending and how much one pays for lending. Credit scores are regulated because of fear of things like redlining and for simple fairness.

    Well the tech industry has done a very good job of doing common sense things under a different name and avoiding regulation. I for a long time wondered how Salesforce made their money. What they do is identify who is who and how likely someone who wants to buy something will be able to pay for it. So for example a.homebuilder does not waste time catering to someone without the means to buy a home (ie the Patels from Glengarry GlenRoss).

    Due to the Fundamental Constant of Sociology, who is a reliable customer has racial overtones. So Salesforce has a handful of contractors who have created things that are credit scores but by different names. Sometimes it is called a wealth score. There are different names. Wealth scores are unregulated, credit scores are regulated. So the lending decisions appear to be part of a black box, AI generated. It is really not. These contractors know who everybody in the US is, what they buy, where they go on the internet and if they pay their bills.

    The conspiracy minded is dissident spaces could be monitored (such as here) and those people could have their credit turned off or access to banks turned off via this system.

    • Replies: @Arclight
    @Hodag

    This is something I feel a lot of people don't really consider - lenders, retailers, auto dealers and so on have an incredible amount of consumer data and know know who their consumers are in terms of buying habits, income/credit, likelihood of repayment and so on and are trying to maximize their sales within an acceptable range of risk.

    So in home ownership there is a big disparity with our most sainted demographic because we are talking significant amounts of money and an asset that is not quick or easy to take possession of again and resell, and will incur high transaction costs to do so. With cars it's the opposite, where it's quite easy to structure a loan or lease where you are letting the buyer take on more than is sensible while protecting against downside, and it's easy to get the collateral back and put it back out for sale with lower costs.

    The underlying reality is that blacks have repeatedly been shown to spend a far higher share of their income on visible goods (clothes, cars, jewelry) than anyone else and thus have lower savings than any other group and overutilize credit to do so, which has downstream effects such at late payments on cars, rents, etc. all of which shows up in credit scores. A sensible national policy, as with higher education, would be to have hard and fast limits on who gets credit, mortgages or school loans to prevent the least capable of getting in over their heads. But because we have a culture that is unable to face up to the fact that not everyone performs at the same level, we tie ourselves in knots to bestow the benefits and luxuries that would normally be only attainable through hard work and talent on everyone.

  25. Anonymous[254] • Disclaimer says:

    Of course, the antonym to ‘redlining’ is ‘predatory lending’.

    You haven’t heard ‘predatory lending’ uttered for quite a while now, so it’s largely lapsed from public consciousness, but ten years from now, when Merrick Garland’s policy desired effect comes to pass, you will, most certainly, hear it yapped and yapped about incessantly.
    By exactly the same people who are yapping about redlining.

    • Replies: @Neuday
    @Anonymous

    I think before you hear much again about "Predatory Lending" the regime will establish the Negro Housing Administration, which will ensure a Federally backed guarantee on Negro mortgages. If they're unable to print up the money to cover it they'll simply mandate an additional fee on all mortgages similar to how you pay more on your phone and power bills to pay for services to the "low-income" community.

    Think of iSteve's "World's Most Important Graph" and then imagine what will happen when every African in the world hears that if he can make it to America he gets a free house.

  26. Gee, and to think, we could’ve had Supreme Court Justice Merrick Garland. Remember when President John Doe and his fellow racial socialists insisted that Garland was a “moderate”? Of course, once upon a time they insisted that “Obama” was a “moderate.”

    • Agree: 2BR
    • Replies: @tyrone
    @Nicholas Stix

    Well.....yes......I guess we should thank Mitch for that......damn !

    , @Wade Hampton
    @Nicholas Stix

    By today's standards, Merrick Garland is a "moderate". To be considered "moderate" today one must be anti-white. To be a proper leftist (e.g. Antifa), being merely anti-white is not enough. One must be white-genocidal.

    , @Alec Leamas (working from home)
    @Nicholas Stix


    Gee, and to think, we could’ve had Supreme Court Justice Merrick Garland. Remember when President John Doe and his fellow racial socialists insisted that Garland was a “moderate”? Of course, once upon a time they insisted that “Obama” was a “moderate.”
     
    I think in leftwing doublespeak "moderate" means a white (or fellow white) guy who holds extreme leftwing views without a prior public history of leftwing agitation. The inevitable end point is the same, but a "moderate" better helps conceal the whole program.

    Obama was a "moderate" in the sense where "moderate" was used in an imperative rather than descriptive sense. i.e., "Obama is a moderate (and don't you say otherwise, racist!)."
  27. Next up: Giving women who had abortions Scarlet ‘A’ letters to wear on their frocks … oh wait, thems the other guys.

  28. @Polistra
    @ic1000

    Current NYT Magazine Cover.

    https://i.ibb.co/Pgn8knb/Screenshot-20211022-234533-Chrome.jpg

    Replies: @International Jew

    Our State isn’t exactly neutral in the culture wars.

    • Agree: HammerJack
    • Replies: @Buzz Mohawk
    @International Jew

    Yes, and The American State is using "the power of the state to win the culture wars."

    Victor Orban is a hero, and the Hungarian people are some of the toughest, smartest, most nationalistic people on the planet. They are rare now for Europeans, and they kick Western ass in this regard.

    The New York Times, its wimpy, asthmatic, nerdy, feminized people and its magazine, are a bad joke a world away from what is happening in Eastern Europe.

  29. @Buffalo Joe
    @Mike Tre

    Mike, you too funny. Pay back loans. Where did you get that idea?

    Replies: @Polistra, @Mike Tre, @Mike_from_SGV

    Well these two big dago’s showed up at my door once after I came up short on my vig. They gave me a very good idea as to where! The good news is I learned to type with my toes for a while.

    • Replies: @Buffalo Joe
    @Mike Tre

    Mikey, "dagos"! Well brace for another visit, Take care.

  30. @Nicholas Stix
    Gee, and to think, we could've had Supreme Court Justice Merrick Garland. Remember when President John Doe and his fellow racial socialists insisted that Garland was a "moderate"? Of course, once upon a time they insisted that "Obama" was a "moderate."

    Replies: @tyrone, @Wade Hampton, @Alec Leamas (working from home)

    Well…..yes……I guess we should thank Mitch for that……damn !

  31. @Nicholas Stix
    Gee, and to think, we could've had Supreme Court Justice Merrick Garland. Remember when President John Doe and his fellow racial socialists insisted that Garland was a "moderate"? Of course, once upon a time they insisted that "Obama" was a "moderate."

    Replies: @tyrone, @Wade Hampton, @Alec Leamas (working from home)

    By today’s standards, Merrick Garland is a “moderate”. To be considered “moderate” today one must be anti-white. To be a proper leftist (e.g. Antifa), being merely anti-white is not enough. One must be white-genocidal.

  32. What’s the DOJ going to fight next? Discrimination in marital relationships?

    I hear black women suffer disparate wealth impact because white men tend to marry white women. This practice of discrimination is not who we are, and fighting it will put us on the right side of history.

  33. @Steve Sailer
    @Anon

    One complaint after 2008 was that lenders were lending too much in black neighborhoods, that Countrywide saw white Santa Monica as a place where it was hard to make more than a small profit on a loan, but in Inglewood or Compton, it was easy to put the locals into high profit mortgages.

    Replies: @Wade Hampton

    The cause of the 2008 financial crisis was Bill Clinton’s 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).

    This policy blew massive liquidity into housing, particularly loans to deadbeat borrowers, generating a massive bubble in real estate. The policy took a little while to mature, but when it finally did in 2008 the bubble burst.

    The Federal Government was the cause of the disastrous 2008 financial collapse. We are riding a massively larger bubble today across most all asset classes, the causes of which are FedGov deficit spending enabled by Federal Reserve money printing. And the coming collapse will be massively larger as well.

    John Allison, former chairman of BBT, has a series on the 2008 collapse. Much of what he says is applicable to today. Below is part 1.

    • Replies: @Art Deco
    @Wade Hampton

    The cause of the 2008 financial crisis was Bill Clinton’s 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).

    The Community Reinvestment Act was passed in 1977, IIRC. Freddie Mac and Fannie Mae are not loan originators, but secondary market maws who purchase promissory notes from banks. Paul Krugman was lying (or lying to himself) when he was huffing and puffing in 2008 and 2009 that Fannie Mae and Freddie Mac did not purchase subprime notes; Freddie Mac slashed underwriting standards in 2003. I think subprime and alt-A loans accounted for about a quarter of the outstanding loans on banks' books in 2008. I don't think Fannie Mae and Freddie Mac portfolios were anywhere near 50% subprime.

    Replies: @SolontoCroesus

  34. @Buzz Mohawk
    If they start applying the logical fallacy of Disparate Impact to this, all bets are off. That can be the only reason anybody, Garland included, could ever conclude that any lenders are redlining in 2021.

    Lenders just want to lend money. They are incentivized to do so. That is how they make their money and bonuses. All they do is fit applicants into the categories like debt-to-income, credit history, loan-to-value. Simple, colorblind arithmetic.

    Replies: @Mike Tre, @bomag

    Agree here.

    And we have the fallacy of gov’t telling us there is money left on the table, so they are going to force us to pick it up.

    If there is so much money to be made lending money to blacks for homes, maybe Garland et al should start a side gig and rake in all that obvious \$\$\$.

    • Agree: res
    • Replies: @Buzz Mohawk
    @bomag

    Yours is a brilliant comment.

    Those a-holes should put up or shut up. Let them start their own banks, without government (taxpayer) guarantees, and let them lend money to all those people they claim are being discriminated against by simple math.

    I like it.

    Last I checked (admittedly years ago when I actually knew people who were doing it) it took only $6 million to legally start a bank. (Yes, I knew people like that who were starting their own banks in the 1990s.)

    I'm sure today more dollars are required, but I am equally sure Merrick Garland and his friends can come up with the required seed money. Let them -- sans taxpayer protection against loss . Then let's see what they do with their own money.

    Oh, that's genius!

  35. @ic1000
    Biden is a dynamic leader, forging new paths for an America that's Building Back Better. With the menace of Redlining dispatched, he must follow the lead of fellow Emperor Charles I of Austria-Hungary, and outlaw dueling.

    Interracial dueling, I mean. Or some other existential-crisis-issue demanding a laserlike focus from the nation's executive officer. Failing to recycle glass bottles, oppressive use of pronouns, wearing white after Labor Day, whatever.

    Senility, I hear that can be a big problem.

    Replies: @Polistra, @bomag

    Is it a thing where countries under stress bring in senile/incapable leaders?

    I’m thinking of Hindenburg in Germany; various Roman emperors.

    In the case of the various Communist regimes, they brought in evil people.

  36. @Mike Tre
    @Buzz Mohawk

    "Lenders just want to lend money."

    I would add that they want to lend money.. to those who can eventually pay it back.

    Replies: @Buffalo Joe, @bomag, @Buzz Mohawk

    …to those who can eventually pay it back

    Indeed, but today’s ethos is to crash our ships upon the rocks of unobtainable equality.

    • Agree: Mike Tre
  37. It’s not about redlining, it’s a war on credit standards. Redlining, for that matter, was also about credit standards.

    • Replies: @Art Deco
    @International Jew

    Yes. Credit standards presume you have a market of aspirant borrowers who are generic market participants and can be evaluated according to a common set of metrics and rules of thumb. For creatures like Merrick Garland, the clerisy distributes privileges according to their own occult criteria, and the franchise of lenders to distribute credit according to their own prudential judgment is not one the clerisy has accorded them. Also, the clerisy in denying credit to the mascots of the Anointed is getting above itself by disrespecting people of higher status. The people denied credit will also subscribe to this view, with the proviso that their status is innate and not conferred by the likes of Merrick Garland. It never occurs to lawyers like Garland (and the judges they have in their breast pocket) that the people who best understand what is a beneficial exchange between borrower and lender are the people who do that sort of thing every day and can see the results every quarter.

    Everything the clerisy does is reducible to status games.

  38. We can joke about it, but this is bad.

    Counter, what do we do?

  39. Everybody has forgotten about 2008 and the non-predatory lending that preceded it. But when SHTF, anti-terror legislation to keep people from empyting their accounts came in handy, at leats in the UK. That I remember. Also finance ministers on TV saying “there is no problem, no fear” while expensive cars where serially rolling up to the VIP entrance at the bank just down the street.

    Anyway, can anyone explain how a 30-year “fixed rate” mortage is supposed to work?

    Is it all in the small print? Is it speculation on hitting it big on the inevitable bailout?

    I’m sure currently they are just lining up the bodies to be mummified and burnt on the altar of money printing so that they may continue to live in style, but I don’t see how it’s going to work.

  40. When we discuss the supposed scourge of “redlining,” I always ask: didn’t the lack of lending in black neighborhoods keep housing prices from inflating, thus making home ownership within the means of even “low income” black consumers?

    It’s a tradeoff: on the one hand, homes won’t appreciate in value very much (unless and until the dreaded “gentrification” occurs); on the other hand, a single family non-detached home could sell for \$8,000 – \$10,000, permitting even low income earners to save enough to buy a home with cash. (Yes, the \$8K-\$10K figure is accurate).

  41. @Nicholas Stix
    Gee, and to think, we could've had Supreme Court Justice Merrick Garland. Remember when President John Doe and his fellow racial socialists insisted that Garland was a "moderate"? Of course, once upon a time they insisted that "Obama" was a "moderate."

    Replies: @tyrone, @Wade Hampton, @Alec Leamas (working from home)

    Gee, and to think, we could’ve had Supreme Court Justice Merrick Garland. Remember when President John Doe and his fellow racial socialists insisted that Garland was a “moderate”? Of course, once upon a time they insisted that “Obama” was a “moderate.”

    I think in leftwing doublespeak “moderate” means a white (or fellow white) guy who holds extreme leftwing views without a prior public history of leftwing agitation. The inevitable end point is the same, but a “moderate” better helps conceal the whole program.

    Obama was a “moderate” in the sense where “moderate” was used in an imperative rather than descriptive sense. i.e., “Obama is a moderate (and don’t you say otherwise, racist!).”

  42. Is Garland Janet Reno in drag? This is the same crap that brought the Obama crash.

    “History doesn’t repeat itself, but it often rhymes.”

  43. @Hodag
    Everyone is worried about their credit score and it's implications about lending and how much one pays for lending. Credit scores are regulated because of fear of things like redlining and for simple fairness.

    Well the tech industry has done a very good job of doing common sense things under a different name and avoiding regulation. I for a long time wondered how Salesforce made their money. What they do is identify who is who and how likely someone who wants to buy something will be able to pay for it. So for example a.homebuilder does not waste time catering to someone without the means to buy a home (ie the Patels from Glengarry GlenRoss).

    Due to the Fundamental Constant of Sociology, who is a reliable customer has racial overtones. So Salesforce has a handful of contractors who have created things that are credit scores but by different names. Sometimes it is called a wealth score. There are different names. Wealth scores are unregulated, credit scores are regulated. So the lending decisions appear to be part of a black box, AI generated. It is really not. These contractors know who everybody in the US is, what they buy, where they go on the internet and if they pay their bills.

    The conspiracy minded is dissident spaces could be monitored (such as here) and those people could have their credit turned off or access to banks turned off via this system.

    Replies: @Arclight

    This is something I feel a lot of people don’t really consider – lenders, retailers, auto dealers and so on have an incredible amount of consumer data and know know who their consumers are in terms of buying habits, income/credit, likelihood of repayment and so on and are trying to maximize their sales within an acceptable range of risk.

    So in home ownership there is a big disparity with our most sainted demographic because we are talking significant amounts of money and an asset that is not quick or easy to take possession of again and resell, and will incur high transaction costs to do so. With cars it’s the opposite, where it’s quite easy to structure a loan or lease where you are letting the buyer take on more than is sensible while protecting against downside, and it’s easy to get the collateral back and put it back out for sale with lower costs.

    The underlying reality is that blacks have repeatedly been shown to spend a far higher share of their income on visible goods (clothes, cars, jewelry) than anyone else and thus have lower savings than any other group and overutilize credit to do so, which has downstream effects such at late payments on cars, rents, etc. all of which shows up in credit scores. A sensible national policy, as with higher education, would be to have hard and fast limits on who gets credit, mortgages or school loans to prevent the least capable of getting in over their heads. But because we have a culture that is unable to face up to the fact that not everyone performs at the same level, we tie ourselves in knots to bestow the benefits and luxuries that would normally be only attainable through hard work and talent on everyone.

    • Agree: bomag
  44. So, the government is going to tell banks that since blacks are 14% of the population, that they must be given 14% of the money banks loan out?

    That’ll be fun to watch. Although I suppose the government can just print more money – maybe the money can be paid out in Harriet Tubman and Sojourner Truth ten dollar bills?

  45. @Arclight
    A 'fair housing' organization in my city is suing a local bank saying it is engaging in redlining because it closed a handful of physical branches in predominantly black area and is averaging something like just 4% of its loan originations to black borrowers while similar banks are more like 14%...although this is just over a 2 year period. Obviously something must be done so this bank stops missing out on the amazing business opportunities involved in putting out more of its depositors' assets out as loans to the least creditworthy group in America.

    It seems obvious to me in all the virtual ink being spilled about this that all you have to do is introduce data on FICO scores and a lot of the reasons for 'redlining' will become obvious. Even taking that into account, I believe I have read in the past that even black borrowers with solid credit scores default at higher rates than other groups (although I think Latinos were not much better).

    Replies: @res

    It seems obvious to me in all the virtual ink being spilled about this that all you have to do is introduce data on FICO scores and a lot of the reasons for ‘redlining’ will become obvious. Even taking that into account, I believe I have read in the past that even black borrowers with solid credit scores default at higher rates than other groups (although I think Latinos were not much better).

    Some more about this in Steve’s post here and the ensuing comments. I think the conclusion of this comment there (critiquing a study which found discrimination) is worthwhile. I also think the point in bold (added) does not get made nearly often enough.
    https://www.unz.com/isteve/those-who-never-noticed-the-past-are-condemned-to-repeat-it/#comment-2210446

    They included a number of borrower/loan/property/economic/geographic variables in their analysis (including FICO score), but one glaring absence (unless I missed it, but Table 1 seems clear about the variables) is data on assets and liabilities: https://budgeting.thenest.com/assets-liabilities-home-loan-application-28222.html
    Given the racial differences in average net worth that seems like an important omission.

    I also wonder about how much of the effect they observe is due to differing levels of financial savviness rather than race. I am pretty sure most lenders would be happy to sell a more expensive loan to anyone if they could.

    This study also does not consider default, expected loss, etc. so we can’t use that to check the “fairness” of the underwriting.

    There does seem to be a clear split between studies not finding discrimination looking at default, expected loss, etc. and studies finding discrimination ignoring variables like FICO score (Steve’s post) or net worth (the paper above).

    • Replies: @Arclight
    @res

    Agree - I believe a piece in National Review or something like that 10 years ago made the point in bold. Blacks who do save are far more likely to put their money in low-yield instruments like saving accounts and CDs, whereas whites are more likely to buy real estate or put it in equities. To some extent is a lack of savvy, but it's also a much lower tolerance of financial risk, which also partly explains black enthusiasm for social safety net programs across the income spectrum as a hedge against economic insecurity.

    Replies: @2BR

  46. @International Jew
    It's not about redlining, it's a war on credit standards. Redlining, for that matter, was also about credit standards.

    Replies: @Art Deco

    Yes. Credit standards presume you have a market of aspirant borrowers who are generic market participants and can be evaluated according to a common set of metrics and rules of thumb. For creatures like Merrick Garland, the clerisy distributes privileges according to their own occult criteria, and the franchise of lenders to distribute credit according to their own prudential judgment is not one the clerisy has accorded them. Also, the clerisy in denying credit to the mascots of the Anointed is getting above itself by disrespecting people of higher status. The people denied credit will also subscribe to this view, with the proviso that their status is innate and not conferred by the likes of Merrick Garland. It never occurs to lawyers like Garland (and the judges they have in their breast pocket) that the people who best understand what is a beneficial exchange between borrower and lender are the people who do that sort of thing every day and can see the results every quarter.

    Everything the clerisy does is reducible to status games.

    • Agree: Johann Ricke
  47. @Polistra
    @Buffalo Joe

    That was the idea before securitization. In recent times only the bare minimum of diligence is exercised, which is one reason we keep getting into such colossal messes. The loans are immediately sold off, then sliced and diced and sold to investors and pension funds.

    Meanwhile, it's an open secret in the lending sector that even these loose standards are stretched past the breaking point whenever POC borrowers are involved. But it's never enough. And it's one of many reasons why POC default rates are always sky-high, and never documented in the MSM.

    Replies: @Buzz Mohawk

    Correct. At the retail level, which is what all this is about, lenders are salesmen who don’t care if their loans ever are paid back. When interest rates are low and people foolishly want to spend their home equity on copper sinks and marble bathrooms, it’s a gold mine.

  48. Few are better situated than Mr. Sailer to remind The Establishment what happened the last time a President, George W. Bush, engaged in this type of tinkering with the mortgage & lending industry: a lost decade of stagnant economic growth.

    Thanks in advance, Mr. Sailer, for educating the fools in charge on this one.

  49. @International Jew
    @Polistra

    Our State isn't exactly neutral in the culture wars.

    Replies: @Buzz Mohawk

    Yes, and The American State is using “the power of the state to win the culture wars.”

    Victor Orban is a hero, and the Hungarian people are some of the toughest, smartest, most nationalistic people on the planet. They are rare now for Europeans, and they kick Western ass in this regard.

    The New York Times, its wimpy, asthmatic, nerdy, feminized people and its magazine, are a bad joke a world away from what is happening in Eastern Europe.

  50. @Mike Tre
    @Buzz Mohawk

    "Lenders just want to lend money."

    I would add that they want to lend money.. to those who can eventually pay it back.

    Replies: @Buffalo Joe, @bomag, @Buzz Mohawk

    I would add that they want to lend money.. to those who can eventually pay it back.

    That’s where debt-to-income ratio and credit history come in. The former measures how much they can afford to pay back, and the latter tells you how well they have paid back borrowed money in the past, including credit card debt.

    A credit report says a lot about a person.

    The numbers don’t lie, and black applicants typically score lower on these scales.

    Disparate Impact, which apparently a lot of judges — who should know better — use as a false logic, says those black applicants are being discriminated against simply because of their race, when in fact they just, on average, don’t do a very good job of paying back borrowed money.

    • Thanks: Mike Tre
  51. I was an officer for a major California bank. I never had any knowledge of redlining for any loans. As others have commented, it’s all about credit scores, especially for mortgages.
    Some general observations: People pay their mortgages first. Credit cards last. Dentists and doctors run up high credit card debt and buy too expensive cars. Many are slow pay. “I make lots of money. Why are you bothering me?”
    Many Hispanics and Blacks don’t understand how much they are paying in interest even with all the truth in lending requirements. Most only care about is how much the monthly payments are.
    The interest rate is only 1 1/2 percent, right? The difference between compound interest and simple interest, say what?
    Redlining is a non- event.

  52. @Anonymous
    Of course, the antonym to 'redlining' is 'predatory lending'.

    You haven't heard 'predatory lending' uttered for quite a while now, so it's largely lapsed from public consciousness, but ten years from now, when Merrick Garland's policy desired effect comes to pass, you will, most certainly, hear it yapped and yapped about incessantly.
    By exactly the same people who are yapping about redlining.

    Replies: @Neuday

    I think before you hear much again about “Predatory Lending” the regime will establish the Negro Housing Administration, which will ensure a Federally backed guarantee on Negro mortgages. If they’re unable to print up the money to cover it they’ll simply mandate an additional fee on all mortgages similar to how you pay more on your phone and power bills to pay for services to the “low-income” community.

    Think of iSteve’s “World’s Most Important Graph” and then imagine what will happen when every African in the world hears that if he can make it to America he gets a free house.

  53. Trustmark was punished for not putting new branches in “majority-Black and Hispanic communities”. The enforcement action includes:

    Trustmark will establish a loan subsidy program that will offer loans to qualified applicants on a more affordable basis when borrowing to purchase properties in majority-Black and Hispanic neighborhoods in Memphis. The loan subsidies can include closing cost assistance, down payment assistance, and payment of mortgage insurance premiums.

    https://www.consumerfinance.gov/about-us/newsroom/cfpb-doj-and-occ-take-action-against-trustmark-national-bank-for-deliberate-discrimination-against-black-and-hispanic-families/

  54. Blacks and Whites and everybody else are caught in the clutches of evil plutocrats who control the Federal Reserve Bank and they are using monetary policy extremism to create asset bubbles in stocks and bonds and real estate and other assets and these asset bubbles primarily benefit the billionaires and the top ten percent loot holders.

    Whip

    Inflation

    Now

    WIN

    Jack Dorsey is Irish and German and Italian and he is a billionaire and Dorsey understands that the Federal Reserve Bank and the other globalized central banks have created multiple asset bubbles over the past few decades and the current asset bubble is the biggest one yet and to prevent the political atmosphere from becoming unpleasant for billionaires there will have to be a coordinated globalized implosion of the asset bubbles.

    I have German and Irish and Italian ancestry — along with about half a dozen other ancestries — and that German and Irish and Italian blood can be volatile if not taken into account and that might explain Dorsey’s meditation and exercise and diet routine as a way to channel the energy. David Lynch is another guy that meditates to bring calm and to harness the power of inner energy.

    INFLATION is a monetary policy tool deployed by plutocrats and the top ten percent loot holders to inflate an asset bubble to benefit those who own the assets and beer and natural gas price inflation and much inflation else besides pounds the Yellow Vest types and lower middle class and middle class and regular US people.

    The Ruling Class of the American Empire controls the monetary policy and the immigration policy and they are connected. How?

    Inflation in wages has been suppressed by the use of mass legal immigration and mass illegal immigration. Central bankers have used nation-wrecking mass immigration as a monetary tool to prevent the wage inflation that would normally occur during bouts of monetary extremism. Carney at the Bank of England came damn close to directly admitting it, but he shut up about it because the ruling class in England don’t want to tell the truth too much.

    Raise the federal funds rate to 6 percent and fire sale the Fed’s bloated balance sheet and stop the quantitative easing and go quantitative tightening. Quantitative tightening will pop the asset bubbles in stocks and bonds and real estate and inflation will go away along with the great expectations of the greedy ones benefiting from current global monster asset bubble.

    • Replies: @Art Deco
    @Charles Pewitt

    INFLATION is a monetary policy tool deployed by plutocrats and the top ten percent loot holders to inflate an asset bubbl

    Unexpected inflation injures creditors, especially people who've bought bonds. Such people are generally affluent.

  55. Peter Brimelow wrote an article in National Review in 1993 that talked about how the Boston Federal Reserve Bank did a study that led a few boobs at the Boston Fed to conclude that shady racist bankers were discriminating against non-Whites.

    Brimelow in 1993:

    And it’s not going to be easy to stop. Late last year, the Wall Street Journal’s news pages carried five campaigning stories in eight weeks alleging that residential mortgage lenders were discriminating against minorities. The Journal’s evidence, raw rejection rates, was essentially worthless because it took no account of standard credit considerations like net worth and income.

    But then the Journal reported a Federal Reserve Bank of Boston study of a sample of mortgage applications that did correct for these criteria. And it found minorities were still rejected at a (slightly) higher rate. This difference, the Boston Fed concluded, could only be due to racism. [Mortgage lending in Boston: Interpreting HMDA data (Working Paper 92-7)]

    https://vdare.com/articles/racism-at-work

    Tweets from 2014 and 2015:

  56. @res
    @Arclight


    It seems obvious to me in all the virtual ink being spilled about this that all you have to do is introduce data on FICO scores and a lot of the reasons for ‘redlining’ will become obvious. Even taking that into account, I believe I have read in the past that even black borrowers with solid credit scores default at higher rates than other groups (although I think Latinos were not much better).
     
    Some more about this in Steve's post here and the ensuing comments. I think the conclusion of this comment there (critiquing a study which found discrimination) is worthwhile. I also think the point in bold (added) does not get made nearly often enough.
    https://www.unz.com/isteve/those-who-never-noticed-the-past-are-condemned-to-repeat-it/#comment-2210446

    They included a number of borrower/loan/property/economic/geographic variables in their analysis (including FICO score), but one glaring absence (unless I missed it, but Table 1 seems clear about the variables) is data on assets and liabilities: https://budgeting.thenest.com/assets-liabilities-home-loan-application-28222.html
    Given the racial differences in average net worth that seems like an important omission.

    I also wonder about how much of the effect they observe is due to differing levels of financial savviness rather than race. I am pretty sure most lenders would be happy to sell a more expensive loan to anyone if they could.

    This study also does not consider default, expected loss, etc. so we can’t use that to check the “fairness” of the underwriting.

    There does seem to be a clear split between studies not finding discrimination looking at default, expected loss, etc. and studies finding discrimination ignoring variables like FICO score (Steve’s post) or net worth (the paper above).
     

    Replies: @Arclight

    Agree – I believe a piece in National Review or something like that 10 years ago made the point in bold. Blacks who do save are far more likely to put their money in low-yield instruments like saving accounts and CDs, whereas whites are more likely to buy real estate or put it in equities. To some extent is a lack of savvy, but it’s also a much lower tolerance of financial risk, which also partly explains black enthusiasm for social safety net programs across the income spectrum as a hedge against economic insecurity.

    • Replies: @2BR
    @Arclight

    If you come from a community where the risk takers end up dead or in jail, and you are someone that wants to build a stable life, then I can see how that might lead you towards making more risk averse decisions in almost everything.

  57. @Arclight
    @res

    Agree - I believe a piece in National Review or something like that 10 years ago made the point in bold. Blacks who do save are far more likely to put their money in low-yield instruments like saving accounts and CDs, whereas whites are more likely to buy real estate or put it in equities. To some extent is a lack of savvy, but it's also a much lower tolerance of financial risk, which also partly explains black enthusiasm for social safety net programs across the income spectrum as a hedge against economic insecurity.

    Replies: @2BR

    If you come from a community where the risk takers end up dead or in jail, and you are someone that wants to build a stable life, then I can see how that might lead you towards making more risk averse decisions in almost everything.

  58. I have read over the years many outsized “news” articles about groups of blacks forming “black owned banks” to solve these kinds of claimed lending problems.

    Yet I never read of any such banks growing large and prosperous, or being sought for buyouts due to their tempting economic successes.

    Where I live I see thriving Asian owned banks (with Asian script words in signage, for instance) and I see these banks open new branches.

    Yet I have yet to hear of any “Martin Luther King Bank” or “Michael Jordan Bank” (franchises, as an example) grow and prosper in black neighborhoods or black majority cities.

    Banks make money by issuing good loans where interest in paid. These can be kept or sold in bulk. The color of the borrowers doesn’t matter so long as the loans are repaid.

    Yet the myth of “redlining” persists.

  59. @bomag
    @Buzz Mohawk

    Agree here.

    And we have the fallacy of gov't telling us there is money left on the table, so they are going to force us to pick it up.

    If there is so much money to be made lending money to blacks for homes, maybe Garland et al should start a side gig and rake in all that obvious $$$.

    Replies: @Buzz Mohawk

    Yours is a brilliant comment.

    Those a-holes should put up or shut up. Let them start their own banks, without government (taxpayer) guarantees, and let them lend money to all those people they claim are being discriminated against by simple math.

    I like it.

    Last I checked (admittedly years ago when I actually knew people who were doing it) it took only \$6 million to legally start a bank. (Yes, I knew people like that who were starting their own banks in the 1990s.)

    I’m sure today more dollars are required, but I am equally sure Merrick Garland and his friends can come up with the required seed money. Let them — sans taxpayer protection against loss . Then let’s see what they do with their own money.

    Oh, that’s genius!

  60. @Wade Hampton
    @Steve Sailer

    The cause of the 2008 financial crisis was Bill Clinton's 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).

    This policy blew massive liquidity into housing, particularly loans to deadbeat borrowers, generating a massive bubble in real estate. The policy took a little while to mature, but when it finally did in 2008 the bubble burst.

    The Federal Government was the cause of the disastrous 2008 financial collapse. We are riding a massively larger bubble today across most all asset classes, the causes of which are FedGov deficit spending enabled by Federal Reserve money printing. And the coming collapse will be massively larger as well.

    John Allison, former chairman of BBT, has a series on the 2008 collapse. Much of what he says is applicable to today. Below is part 1.

    https://www.youtube.com/watch?v=aSxA-vtjRx0

    Replies: @Art Deco

    The cause of the 2008 financial crisis was Bill Clinton’s 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).

    The Community Reinvestment Act was passed in 1977, IIRC. Freddie Mac and Fannie Mae are not loan originators, but secondary market maws who purchase promissory notes from banks. Paul Krugman was lying (or lying to himself) when he was huffing and puffing in 2008 and 2009 that Fannie Mae and Freddie Mac did not purchase subprime notes; Freddie Mac slashed underwriting standards in 2003. I think subprime and alt-A loans accounted for about a quarter of the outstanding loans on banks’ books in 2008. I don’t think Fannie Mae and Freddie Mac portfolios were anywhere near 50% subprime.

    • Replies: @SolontoCroesus
    @Art Deco



    "The cause of the 2008 financial crisis was Bill Clinton’s 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).
     

    The Community Reinvestment Act was passed in 1977, IIRC.
     

     
    http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877322,00.html

    In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.
     
    https://www.jstor.org/stable/3312484?read-now=1&refreqid=excelsior%3Afabbf2517a5ee6990c6d211f603c3b78&seq=2#page_scan_tab_contents

    "In July of 1993, President Clinton gave regulators their "marching orders" [fn 9] when he instructed financial institution regulators to develop new regulations to enforce the CRA.

    (The jstor.org article devotes 100 pages to the back-and-forth between Clinton Admin. and Fed to arrive at acceptable new definition and procedures for "community reinvestment.")
    _________
    fn9: "Lawrence Lindsey, Presiding Member, Board of Governors of Fed. Reserve . . . Aug 25, 1993)
    from the transcript

    Replies: @Art Deco

  61. @Charles Pewitt
    https://twitter.com/NorthmanTrader/status/1451862386655305729?s=20

    Blacks and Whites and everybody else are caught in the clutches of evil plutocrats who control the Federal Reserve Bank and they are using monetary policy extremism to create asset bubbles in stocks and bonds and real estate and other assets and these asset bubbles primarily benefit the billionaires and the top ten percent loot holders.

    Whip

    Inflation

    Now

    WIN

    Jack Dorsey is Irish and German and Italian and he is a billionaire and Dorsey understands that the Federal Reserve Bank and the other globalized central banks have created multiple asset bubbles over the past few decades and the current asset bubble is the biggest one yet and to prevent the political atmosphere from becoming unpleasant for billionaires there will have to be a coordinated globalized implosion of the asset bubbles.

    I have German and Irish and Italian ancestry -- along with about half a dozen other ancestries -- and that German and Irish and Italian blood can be volatile if not taken into account and that might explain Dorsey's meditation and exercise and diet routine as a way to channel the energy. David Lynch is another guy that meditates to bring calm and to harness the power of inner energy.

    INFLATION is a monetary policy tool deployed by plutocrats and the top ten percent loot holders to inflate an asset bubble to benefit those who own the assets and beer and natural gas price inflation and much inflation else besides pounds the Yellow Vest types and lower middle class and middle class and regular US people.

    The Ruling Class of the American Empire controls the monetary policy and the immigration policy and they are connected. How?

    Inflation in wages has been suppressed by the use of mass legal immigration and mass illegal immigration. Central bankers have used nation-wrecking mass immigration as a monetary tool to prevent the wage inflation that would normally occur during bouts of monetary extremism. Carney at the Bank of England came damn close to directly admitting it, but he shut up about it because the ruling class in England don’t want to tell the truth too much.

    Raise the federal funds rate to 6 percent and fire sale the Fed’s bloated balance sheet and stop the quantitative easing and go quantitative tightening. Quantitative tightening will pop the asset bubbles in stocks and bonds and real estate and inflation will go away along with the great expectations of the greedy ones benefiting from current global monster asset bubble.

    Replies: @Art Deco

    INFLATION is a monetary policy tool deployed by plutocrats and the top ten percent loot holders to inflate an asset bubbl

    Unexpected inflation injures creditors, especially people who’ve bought bonds. Such people are generally affluent.

  62. @Mike Tre
    @Buffalo Joe

    Well these two big dago's showed up at my door once after I came up short on my vig. They gave me a very good idea as to where! The good news is I learned to type with my toes for a while.

    Replies: @Buffalo Joe

    Mikey, “dagos”! Well brace for another visit, Take care.

  63. Anon[694] • Disclaimer says:

    For a good explanation of redlining:

    http://thosewhocansee.blogspot.com/2014/08/reparations-for-red-lining.html

    It turns out that banks want to make sure the assets they’re lending on, in this case houses, maintain their value so that the loan is backed by something valuable in case of foreclosure. It turns out that blacks destroy neighborhoods, causing house values to plummet (See: Detroit). Banks would rank neighborhoods, with red being the worst.

    “Red areas [D] … are characterized by detrimental influences in a pronounced degree, undesirable population or infiltration of it. Low percentage of home ownership, very poor maintenance and often vandalism prevail. Unstable incomes of the people and difficult collections are usually prevalent…. Some mortgage lenders may refuse to make loans in these neighborhoods and others will lend only on a conservative basis.”

    Banks wouldn’t loan to people wanting to buy in those areas because they were being destroyed by blacks and banks didn’t want to end up with worthless assets. Since sane white people don’t want to live around blacks, many of the people trying to buy in the red areas were blacks.

  64. A photo of Biden on Gateway Pundit shows him making the OK/White Power sign in his recent town hall. Has the media stopped promoting that hoax, or will Biden be taken to task?

    https://www.thegatewaypundit.com/2021/10/senator-370-years-creepy-joe-rambles-cnn-town-hall-leans-forward-whispers-anderson-cooper-video/

  65. Number 2 in the first ad is definitely racist. They talk about running numbers which perpetuates the old ghetto stereotype that blacks are numbers runners. I know you guys aint gonna take me seriously but a woke wacko certainly would.

  66. @Wilkey
    If you are ever asked to indicate your race when applying for a loan, remember to put yourself down as black. Even if you’re applying for a loan in person, the odds are the lender won’t challenge you, and may even be grateful to you for letting them claim to have lent to another black person. We need to start undermining this system whenever we can.

    Replies: @Mike_from_SGV

    And the next time I’m asked to state my (1 of 37 choices) gender on a form, I think I’ll put ‘queer’, because being a (what used to be) normal man in New America does indeed make me queer.

  67. @Buffalo Joe
    @Mike Tre

    Mike, you too funny. Pay back loans. Where did you get that idea?

    Replies: @Polistra, @Mike Tre, @Mike_from_SGV

    In New America, the requirements for banks are two:
    1. Lend money to people who can pay it back.
    2. Lend money to bLACKS and other Numinous Minorities.

  68. @Art Deco
    @Wade Hampton

    The cause of the 2008 financial crisis was Bill Clinton’s 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).

    The Community Reinvestment Act was passed in 1977, IIRC. Freddie Mac and Fannie Mae are not loan originators, but secondary market maws who purchase promissory notes from banks. Paul Krugman was lying (or lying to himself) when he was huffing and puffing in 2008 and 2009 that Fannie Mae and Freddie Mac did not purchase subprime notes; Freddie Mac slashed underwriting standards in 2003. I think subprime and alt-A loans accounted for about a quarter of the outstanding loans on banks' books in 2008. I don't think Fannie Mae and Freddie Mac portfolios were anywhere near 50% subprime.

    Replies: @SolontoCroesus

    “The cause of the 2008 financial crisis was Bill Clinton’s 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).

    The Community Reinvestment Act was passed in 1977, IIRC.

    http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877322,00.html

    In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.

    https://www.jstor.org/stable/3312484?read-now=1&refreqid=excelsior%3Afabbf2517a5ee6990c6d211f603c3b78&seq=2#page_scan_tab_contents

    “In July of 1993, President Clinton gave regulators their “marching orders” [fn 9] when he instructed financial institution regulators to develop new regulations to enforce the CRA.

    (The jstor.org article devotes 100 pages to the back-and-forth between Clinton Admin. and Fed to arrive at acceptable new definition and procedures for “community reinvestment.”)
    _________
    fn9: “Lawrence Lindsey, Presiding Member, Board of Governors of Fed. Reserve . . . Aug 25, 1993)
    from the transcript

    • Thanks: Wade Hampton
    • Replies: @Art Deco
    @SolontoCroesus

    In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.

    The president cannot unilaterally rewrite statutes. Agencies can promulgate revised regulations. You had some inflation in the ratio of home prices to income flows over the period running from 1997-2003, but it was only in 2003 that Freddie Mac slashed their underwriting standards. In re nearly all the properties underwater on their mortgages by 2009, the loan was originated after 2003.

    Replies: @Gamecock

  69. @SolontoCroesus
    @Art Deco



    "The cause of the 2008 financial crisis was Bill Clinton’s 1999 Community Reinvestment Act which mandated that the government sponsored entities, Freddie (the Federal Home Loan Mortgage Corp) and Fannie (the Federal National Mortgage Association), make at least 50% of their loans to subprime borrowers (i.e. deadbeats of all all races).
     

    The Community Reinvestment Act was passed in 1977, IIRC.
     

     
    http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877322,00.html

    In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.
     
    https://www.jstor.org/stable/3312484?read-now=1&refreqid=excelsior%3Afabbf2517a5ee6990c6d211f603c3b78&seq=2#page_scan_tab_contents

    "In July of 1993, President Clinton gave regulators their "marching orders" [fn 9] when he instructed financial institution regulators to develop new regulations to enforce the CRA.

    (The jstor.org article devotes 100 pages to the back-and-forth between Clinton Admin. and Fed to arrive at acceptable new definition and procedures for "community reinvestment.")
    _________
    fn9: "Lawrence Lindsey, Presiding Member, Board of Governors of Fed. Reserve . . . Aug 25, 1993)
    from the transcript

    Replies: @Art Deco

    In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.

    The president cannot unilaterally rewrite statutes. Agencies can promulgate revised regulations. You had some inflation in the ratio of home prices to income flows over the period running from 1997-2003, but it was only in 2003 that Freddie Mac slashed their underwriting standards. In re nearly all the properties underwater on their mortgages by 2009, the loan was originated after 2003.

    • Replies: @Gamecock
    @Art Deco

    You can believe whatever you want to.

    You are not entitled to your own history.

    'At President Clinton's direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.

    The threat was codified in a 20-page "Policy Statement on Discrimination in Lending" and entered into the Federal Register on April 15, 1994, by the Interagency Task Force on Fair Lending. Clinton set up the little-known body to coordinate an unprecedented crackdown on alleged bank redlining.'

  70. @Art Deco
    @SolontoCroesus

    In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.

    The president cannot unilaterally rewrite statutes. Agencies can promulgate revised regulations. You had some inflation in the ratio of home prices to income flows over the period running from 1997-2003, but it was only in 2003 that Freddie Mac slashed their underwriting standards. In re nearly all the properties underwater on their mortgages by 2009, the loan was originated after 2003.

    Replies: @Gamecock

    You can believe whatever you want to.

    You are not entitled to your own history.

    ‘At President Clinton’s direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.

    The threat was codified in a 20-page “Policy Statement on Discrimination in Lending” and entered into the Federal Register on April 15, 1994, by the Interagency Task Force on Fair Lending. Clinton set up the little-known body to coordinate an unprecedented crackdown on alleged bank redlining.’

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