Sunday, December 5, 2010

More Deadbeats Challenging Banks For Mortgages

New legal challenges against banks declining mortgages to people with credit scores lower than 580.

The complaint alleges it's "discrimination" and "insidious" not to fund mortgages to blacks and latinos who can't pay their bills because the banks have insurance policies when they default.

The complaints allege that the higher FICO requirements disproportionately discriminate against African-American and Latino borrowers, many of whom have credit scores above the 580 threshold set by FHA but below the 620 to 660 minimums frequently imposed by private lenders. FICO scores run from 300 to 850, with higher scores correlated with lower future risk of default.

Since FHA insures lenders against losses from serious delinquency or foreclosure, there is “no legitimate business justification” for rejecting applicants solely on the basis of FICO scores that are acceptable to FHA, the complaints contend.

How curious, since lawyers know insurance companies aren't just printing off money and there are Whites, Asians, Mexicans and other races who also can't get mortgages when they can't pay their bills.

Banks being forced into giving people mortgages who can't pay their bills have nearly destroyed our country.

I looked at my paycheck a few weeks ago and figured out between Federal, State and Social Security taxes, health insurance and other deductions, a little over 40% of my paycheck was being siphoned.

We're all set with that. Thanks anyway.

1 comment:

Anonymous said...

unbelievable....the judge will probably rule that the applicants rights are being violated. this is what led to the bank crisis in the first place.