truthwillnotbesilenced asked:


Remember the ‘redlining’ scandal? This turned out to be total BS - white people living in Roxbury also paid higher interest rates than black people living in Wellesley for loans of the same size and with similar credit scores - - - the difference was that the collateral was higher risk. Mortgages are secured loans - they’re so low-interest to start with, and they sell for only a few bps discount in the secondary market, precisely because they’re secured.

A new report shows different rates for auto loans…. But does that necessarily imply racism? A lot of poor / high crime neighborhoods happen to be largely minority neighborhoods. The car is more likely to be damaged or stolen - same reason the insurance rates are higher.

Consider also that in both cases, most applications are done over the phone with a written follow up - - - the loan officer never sees you - in fact he or she usually actually talks to the car dealer, not you.

This sounds like another fake scandal.
Kermit I completely sympathize and empathize with you, I’ve had similar problems with medical insurance - you change jobs and thus health insurers and the hospital or pediatrician just keeps billing the wrong insurance company and then tell you you have to pay the bill - the $8/hr receptionists are just too lazy to change the info in their system even though you repeat it to them 6 times.

But that doesn’t mean that if minorities are on average paying 25 bps more for mortgages that the banks are ****** - if the mortgages are secured by property in higher-crime / volatile housing value neighborhoods then secured loans will be priced higher.
No Shrink, you’re wrong, it’s a secured loan, the collateral value and risk is a valid concern - sometimes the most important concern - and it’s not at all illegal to consider it.

secured loan