Quote:
Originally posted by NoSoup
Example #1
I am in the lending business, and there are a variety of laws regarding ECOA (equal credit opportunity act). A portion of this consists of the HMDA reports, which basically is a government issued form that reports the race of people that we lend out to using a home as collateral.
The lending guidelines that we follow are federally governed, and after filling out the application, I submit it to be underwritten (approved, denied, ect.) Recently, on more than one occasion, I have submitted poor credit applications that were denied when "white, non Hispanic" was checked. I realized on one application that I had made an error regarding the HMDA information and I wanted to correct it when the denial was sent out. However, when I resubmit the application with "black" checked, and no other information changed, it came back as approved. I have tested this on many applications that I have submitted for "white, non Hispanic" by switching the racial information to a different race, and a good 20-30% of the time they'll come back approved.
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That is odd and weird for sure. However, I think there might just be a possibility that it isn't racism. One of my household members recently became involved in underwriting. From what I understand most of it is based of statistical figures from past events. So, if the loan company has data that shows that so many people of (insert race) payback the loan at a set income/credit rating level. This would make them want to approve the loan. If people of a different race at the same income/credit rating don't payback the loan, it would make the company not want to approve that person.
I'm not saying what happed isn't racism but merely noting the possibility that things aren’t always how they seem.
Quote:
Originally posted by Lebell
Ironically,
Racism knows no race.
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Ha, indeed.