Reply to Woah, Navy Federal is hella racist

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Credit union keep a lot more mortgages in books than banks.

Chase and Citi only care about credit risk as long as it takes then to securitize or sell loan. So a matter of weeks or months.

Credit Union has loans many years on books so may be stricter. That stricter standard although not races based may be difference [/quote]

The CNN article is about turning down borrowers for conventional mortgages. These are - de facto - not held on the books of the credit union and are sold onward to the GSEs for securitization. That's what makes them "conventional" - they have to meet the GSE mortgage standards.

The CNN analysis used HMDA data to control for income, borrowers' outstanding debt, locations of property, price of property, etc. So it's not the DTI of the borrower that makes them less likely to get approved.

For those disapproved, NFCU was selecting that disapprovals were happening for reasons "other than credit history." That's a bright red flag for regulators, since it means there's some sort of qualitative judgement call by the loan officers to reject them for a conventional mortgage. We know it's not due to debt, income, home location, price of the house, or "credit history." So what else is left to reject half of black borrowers?

It doesn't look good for NFCU.
[/quote]

I don't know about NFCU, but some lenders have final discretion at the end of the day. The article states that debt ratio, income, home location, credit history and home price were comparable for applicants that were accepted and rejected for mortgage. [/quote]

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