Thread: Affirmative Action Timebomb finally exploded

Originally Posted by zeezil

Your arguement is hollow, Richard. In many, many cases, minorities got mortgages simply because they were minorities due to set asides and government imposed requirements.

Let not forget about the Community Reinvestment Act of 1977! The purpose of the CRA was to provide credit, including home ownership opportunities to under-served populations and commercial loans to small businesses. There was opposition from the mainstream banking community, specifically for the reasons we are now seeing some 30 years later! The banking industry was concerned that people would receive loans based upon their minority status, and not their ability to repay those loans!

Ironically, the CRA encouraged mortgage lending through two government sponsored enterprises! Can you guess who those two "government enterprises" were?

That's right! Fanny Mae and Freddie Mac, both of which had to be bailed out through gov intervention!

I don't understand FICO either. Someone tried to explain it to me.

It isn't like what the old credit rating scores used to be.

Once it depended on income, length of time employed, assets, ratio of income to debt, etc.

I've always thought it was something thought up to truly throw a monkey wrench into actually making sure people were qualified for credit.

Originally Posted by nntrixie

I don't understand FICO either. Someone tried to explain it to me.

It isn't like what the old credit rating scores used to be.

Once it depended on income, length of time employed, assets, ratio of income to debt, etc.

I've always thought it was something thought up to truly throw a monkey wrench into actually making sure people were qualified for credit.

See my post above, although you have the gist of it..

MINORITY or NOT--it is NOT advisable to give MORTGAGES to UNQUALIFED customers!

wmarincic

I have heard if you pay off credit cards to not cancel them. Having credit cards helps your score. I don' t understand that at all.


Just a warning to those holding those cards open.
Be careful keeping a credit card, though. Some charge a monthly fee if you don't use the card. We are having some difficulty getting Capitol One to cancel a card. We are up to $60 in charges, for fees,credit card protection, etc. , and late fees and have been trying to cancel for months. We've called, written, sent registered letters, etc.

Originally Posted by nntrixie

wmarincic

I have heard if you pay off credit cards to not cancel them. Having credit cards helps your score. I don' t understand that at all.


Just a warning to those holding those cards open.
Be careful keeping a credit card, though. Some charge a monthly fee if you don't use the card. We are having some difficulty getting Capitol One to cancel a card. We are up to $60 in charges, for fees,credit card protection, etc. , and late fees and have been trying to cancel for months. We've called, written, sent registered letters, etc.

There are a couple ways of looking at it. First, if you have had a credit card for say 10 years and you pay it off you should keep that card open provided there are no annual fees and if there are fees you can call the credit card co. and ask to have those fees waived by telling them you will cancel card if they dont. You want to keep this card because it shows that you have a long term credit relationship with a lender. Second, you want to keep some credit cards open as to keep a well rounded credit report and also your FICO score and bank rates will depend on the ammount of available revolving credit you have. IE; If you have 2 credit cards with $10,000 limits on each and you have a balance of $2000 your credit report will show a 90% available revolving credit.
You can get a free credit report from all three major bureaus, Equifax,Experian, Transunion by going to The Federal Trade Commission website for instructiuons http://www.ftc.gov/bcp/edu/pubs/consume ... cre34.shtm

Is it possible this FICO scoring was put in place to actually keep people in debt?

For so many people in this country, telling them to keep credit cards open is like telling me to keep a stash of cheesecake. Sooner or later, temptation is going to win.

It seems a person who pays cash, has a nice backlog of money, owns his home, his cars, etc., and either no credit card or one and pays the balance monthly, has a lower score than someone who has several revolving accounts?

Oh, I just called my bank that I have had stock in since 1977, (local community bank), the bank loan officer gives me the story about not discriminating. Fine I told him now let's tell the shareholders about the ITIN sweet deal for documented immigrants. ?

He says, that this ratio of ITIN to immigrants cannot be shown. This is BS in my opinion.

The Loan Officer tells me that the percentage is lower than 1% of ITIN immigrant loans.

I asked, what if 100 documented immigrants line up today at this bank all these people would be E-Verified, (surprise, surprise,). If that is good then what, is the loan to be paid within a time period of legal residents status ending.

No comment from the loan officer on time period of paid in full date in relationship to legal status.

The Loan Officer told me this ratio is not going to be singled out. I told him for disclosure purposes to the shareholders it should be required.

Then I asked him what my stock is selling for currently. And I told him I would be contacting other shareholders that he might listen to.

I am totally sickened to the bottom of my stomach.

Originally Posted by nntrixie

Is it possible this FICO scoring was put in place to actually keep people in debt?

For so many people in this country, telling them to keep credit cards open is like telling me to keep a stash of cheesecake. Sooner or later, temptation is going to win.

It seems a person who pays cash, has a nice backlog of money, owns his home, his cars, etc., and either no credit card or one and pays the balance monthly, has a lower score than someone who has several revolving accounts?

Actually FICO is a good system and it is fair. The bottom line is you have to demonstrate responsibility and restraint to get and keep a good score.