It looks like the GOP and DEMs have found something they can compromise on... Yippee!!!
VOX Some DEMs Support Deregulation
VOX Bill Explained
Politico DEMS Break Ranks
WE GOP will have to Lower Their Expectations
MJ Warren Blasts Fellow DEMs
VOX Some DEMs Support Deregulation
VOX Bill Explained
Politico DEMS Break Ranks
WE GOP will have to Lower Their Expectations
MJ Warren Blasts Fellow DEMs
4 comments:
Financial catastrophes are profitable for bank management, if not for their shareholders or their customers. And the only way they can happen is if we manage to forget or at least obscure the lessons we learn from them. And no one is more familiar than Donald Trump with the disasters that can occur when honest bankers crack down on crooked businessmen.
--Hiram
Hiram,
Please remember that this is a bi-partisan bill.
What do you think financial companies should do about high risk loans applicants?
Should they just tell all the low income folks no? We are not able to give you a chance...
The biggest problem with the bill is explain by Sean.
"It's going to help banks until the next crisis (now likely to be a lot sooner than before). Even worse, changes in reporting requirements in the bill will make it virtually impossible to determine if banks are engaging in racial discrimination in the mortgage market. " Sean
"I am not sure how to identify it when there are so many other related factors that go into deciding to borrow money to a person." G2A
"That's why the data that was required to be collected was important -- including credit scores for the applicants, loan-to-value ratios, etc. It allowed you to control for those factors when you did the statistical analysis. Now that 85% of banks will no longer have to provide this data, though, you're not going to have enough data to be able to make comparisons." Sean
"This does seem unwise..." G2A
TP Bank Bill
"Housing discrimination law is already notoriously difficult to enforce. Plaintiffs must make exhaustive shows of data-driven evidence to get a court to see how they were denied credit that was made available to others with no superior qualifications but a different demographic tag. That data is already difficult to obtain. The Senate bill would ensure that most of it stops being generated at all.
The bill ends Dodd-Frank requirements for housing lenders to track the credit scores, loan-to-value ratios, and other key metrics associated with the mortgages they make, provided the lender is small enough that it makes 500 or fewer loans per year. The logic behind the eased data tracking rules for small lenders is that a lender who keeps his own skin in the game has no incentive to deceive customers and therefore doesn’t need to be policed for discriminatory practices.
But six out of every seven banks and credit unions in the country would qualify. The end of data collection on markers of discriminatory lending would negate everyone’s ability to make a discrimination case against the other categories of lenders — the big boys who are not, according to the public sales pitch here, supposed to be getting any favors off of Congress in this legislation. Someone trying to sue one of the 15 percent of banks who does have to keep tracking discrimination data would find it nearly impossible to draw vital comparisons in a statistically valid way if there is no data for the lending done by the other 85 percent of the banking business."
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