Stan Liebowitz writes in the New York Post:
Perhaps the greatest scandal of the mortgage crisis is that it is a direct result of an intentional loosening of underwriting standards – done in the name of ending discrimination, despite warnings that it could lead to wide-scale defaults. …
In an earlier newspaper story extolling the virtues of relaxed underwriting standards, Countrywide’s chief executive bragged that, to approve minority applications that would otherwise be rejected “lenders have had to stretch the rules a bit.” He’s not bragging now.
I’m not sure I entirely agree, but it’s an element we should be considering as we look at the new complaints of “racial discrimination” through excessive sub-prime loans.
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The absurdity of all this is astounding. First, banks were evil racists for not loaning money. Now, they’re evil racists FOR loaning money. The only folks who never seem to be blamed for anything are the folks failing to pay their loans back. It sort of reminds me of a recent racial discrimination in employment case where the plaintiff argued that he was hurt BECAUSE THE COMPANY PROMOTED HIM UNDER AN AFFIRMATIVE ACTION PLAN. And then he or she couldn’t cut the mustard in the higher position (happened in the UK, I think).
Is anyone out there noting all this?
Is anyone out there noting all this?
Lots of people… just not the people driving this crap, so it does no good.