Lawsuit Paints Loan Crisis In Black, White and Brown

Dinochick at 10:59 2008-11-30 said:

First of all, I am a white female and they tried to push a subprime down my throat as well when I bought a new construction house.. And my credit score was well within prime ... The agents only do that to make more money, once I protested, I got a better deal. It is the brokers and loan agents that target these groups, and sometimes they are of the same ethnic background!!!

To make a fair analysis, you need to look at the loans that were made to minorities to determine first if they were prime material, and what type of documentation and loan terms they wanted. If they wanted to do a Liar loan, then subprime was the only way. I underwrote sub prime loans (terrible experience for 6 months) and there are representatives of all minority and major ethnic groups.

While I am sure the major "lenders" aren't except from bad practices, you also need to look at the borrower's and loan agent's motives as well.

In other words, if the borrower's lied on their application, they are just as guilty as the lenders, they are ALL at fault.

Wouldn't that be like me blaming the makers of Ferrari if I got a speeding ticket?

Sorry.... no sympathy here. Permalink