Will focusing mortgages on "homebuyers in minority communities" going to cause another lawsuit? I thought that this was unfair treatment or something based off those stupid annual classes that we are forced to complete.
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Yes, the current administration incurs the liability for the defaulted loan. However, the taxpayer will be on the hook for balance. Wells Fargo is not taking the hit for making stupid corporate policy.
WF is going to give preferential rates/no down payment mortgages to under served customers. Good press.
Then the mortgage is going to be sold to Fannie/Freddie
If the customers default later it is the Gov'ts problem.
Wells Fargo will not stop making the jumbo loans they really want. They will just not advertise them. Except to brokers, which is where that business comes from. When they say they are going to focus on underserved communities they mean that’s where the PR opportunities are. They don’t want that business. Never did. Never will. It’s all just smoke.
Focusing mortgages on homebuyers in minority communities is clearly discriminatory. Most of these will probably default and ultimately cause huge losses for WF stockholders.
So in ten years when these loans default and Wells owns the property, will they be called racist because of all the foreclosures they now own in minority communities?
Hopefully it does.
It bothers me quite a bit that the company I work for wants to make all these bad investments that have been proven to fail with decades of data.
No matter how much money you throw at a problem, is will never help. Some people are incapable of managing a household.
The annual training needs to be updated to explain what a Special Purpose Credit Program is.
Racist hate the word minority. I understand this shift in business is hurting some of you. I get it. You are upset and i am too. However the word minority means doesnt mean good things for black people. There are white people living in minority communities too. They are just targeting certain communities and wells fargo targeting your community is not a good thing. They see a benefit from it. They are going around giving money. Thats their next scam
I think they should just go back to lending based on things that used to matter, like debt-to-income ratio...
No. I mean people who watch Tucker Carlson will try but the facts will show Wells is trying to support gentrification. Those homes in minority communities are usually renovation or rental property opportunities which are generally low risk compared to your traditional suburban homes. People just see the word minority and their racist starts to show as though Wells has ever done anything to specifically help minorities…
i don’t get it either
Disparate treatment (under UDAAP)