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View Diary: Donald and Shelly Sterling and the racism of housing discrimination (187 comments)

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    •  Fair enough but from the link (7+ / 0-)
      Although most fair lending groups have not yet reviewed the Fed's study fully, at least one consumer advocate lambasted the report. Calvin Bradford, formerly of the University of Minnesota's Hubert Humphrey Institute of Public Affairs and now a fair-housing consultant, challenged the study's statistical sampling methodology, selection of data, and failure to probe more deeply into issues of marketing of credit products to minorities. Bradford said the Fed used an old database dating to 2003 provided by credit bureau TransUnion that underrepresented minorities such as African Americans and Latino homeowners with mortgages, while overrepresenting whites, based on their actual proportions in the general population.

      "I don't think anybody in the (statistical) modeling business would accept such small samples," said Bradford.

      Bradford also rejected any conclusion that types of credit products marketed to minorities have no impact on payment performance. "If blacks are paying more for access to the mortgage market than they really need to," he said, "then that is going to increase their household debt burdens" and contribute to higher delinquency rates.

      Tell Warner Brothers Pictures that Rooney Mara is #NotYourTigerLily.

      by ExpatGirl on Sun May 04, 2014 at 08:29:50 AM PDT

      [ Parent ]

    •  And yet that's a poisoned statistic. (11+ / 0-)

      Settlement of Attorney General’s 2009 Lawsuit Provides Millions in Restitution for African-American, Latino Borrowers Steered Into Subprime Loans

      Madigan’s complaint cited Wells Fargo’s compensation structure that rewarded employees for placing borrowers into high-cost mortgages. The complaint also alleged that African-Americans and Latinos paid more for their mortgages than whites with similar credit profiles, citing an analysis by the Chicago Reporter, which reviewed mortgage data submitted by Wells Fargo to the federal government. For example, the complaint notes that in 2007, Wells Fargo charged an African-American prime wholesale customer in Chicago an average of about $2,937 more in broker fees than a white borrower on a $300,000 loan, and a Hispanic borrower was charged an average of $2,187 more.
      Read that again.
      Minorities with similar credit profiles were offered worse terms than whites.

      So here's a thought experiment for you.  Take your mortgage, and add $50 to every payment.  Now go through your life and think, every time money was tight, what deadline you would have missed.  Late paying the utility bill?  That hits your credit.  Hospital bill goes to collections?  That hits your credit.

      So even if the measurement is true, racism limits the conclusions that you normally would draw from that.

      -7.75 -4.67

      "Freedom's just another word for nothing left to lose."

      There are no Christians in foxholes.

      by Odysseus on Sun May 04, 2014 at 08:38:30 AM PDT

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      •  As I said above, I wasn't defending the practice (3+ / 0-)

        of looking at credit scores. I'm not a landlord. Was just stating a fact, that landlords use credit scores as a main decision-driver. But as Denise said from her own experience, sometimes even a good credit score isn't enough. And that's certainly a racist landlord.

        but there are landlords who aren't racist who use credit scores too.

        •  I do look at a prospective tenants history (6+ / 0-)
          Recommended by:
          a2nite, Odysseus, slipper, Yasuragi, worldlotus, Chi

          credit and otherwise when renting. Yes - I've been and still am a "landlord" since I rent out part of my small farm, used to rent my apt in the city when we moved to the country, and rented out our old house.

          But my decisions are based on more than the numbers.
          I'm aware of the fact that the scales are weighted against some applicants.

          I take that into consideration.  

          But then I'm not a big realtor - nor am I a slumlord.
          Having been discriminated against helped shape my perspective.  

          "If you're in a coalition and you're comfortable, you know it's not a broad enough coalition." Dr. Bernice Johnson Reagon

          by Denise Oliver Velez on Sun May 04, 2014 at 09:00:52 AM PDT

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      •  thanks for that link Odysseus (3+ / 0-)
        Recommended by:
        Yasuragi, Odysseus, Chi

        as I said to slipper - credit scores are a game I wasn't going into - here today.

        "If you're in a coalition and you're comfortable, you know it's not a broad enough coalition." Dr. Bernice Johnson Reagon

        by Denise Oliver Velez on Sun May 04, 2014 at 08:51:44 AM PDT

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