Paying your bills on time is racist?

Financial reporter John Carney — brother of Examiner political columnist Tim Carney — reports at MSNBC that bank credit standards are going to be challenged as racist:

Banks will be accused of employing discriminatory credit standards when making mortgages in a series of fair housing complaints that a national consumer coalition plans to file beginning next week.

The National Community Reinvestment Coalition plans to challenge the widespread practice of requiring borrowers asking for FHA-backed loans to have higher FICO scores than the minimum required by the FHA, according to a report from Ken Harney at New Times.

The FHA requires a minimum FICO score of 500. Borrowers with down-payments as low as 3.5 percent must have a score of at least 580. Borrowers with scores between 500 and 580 must put a minimum of 10 percent down.

Note the median FICO score ins 723. But requiring a score of at least 580 to get a home loan with only 3.5 percent down is racist? Huh?

alleged racismBeltway ConfidentialmortgagesUS

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Caltrain’s future in jeopardy after supervisors block sales tax measure

Roughly 90 minutes into Tuesday’s San Francisco Board of Supervisors meeting, local… Continue reading

Feds target donations from city contractors with new subpoena in Nuru scandal

Federal authorities have homed in on an apparent trail of donations from… Continue reading

Police union opposes proposal to hang ‘Black Lives Matter’ posters at stations

SFPOA criticizes plan for injecting ‘political agendas and wedge issues’ into policing

Twitter blocks verified accounts from posting after hack hits high-profile users

After the Twitter accounts of Barack Obama, Joe Biden, Kanye West and… Continue reading

Private, charter schools likely forced to begin semester with distance learning

Private and charter schools that may have planned a return to in-person… Continue reading

Most Read