Print Story Horrible, racist reporting at Amerikkka's 'Wall $treet Journal'
Housing Push for Hispanics Spawns Wave of Foreclosures:
California Rep. Joe Baca has long pushed legislation he said would "open the doors to the American Dream" for first-time home buyers in his largely Hispanic district. For many of them, those doors have slammed shut, quickly and painfully.

Mortgage lenders flooded Mr. Baca's San Bernardino, Calif., district with loans that often didn't require down payments, solid credit ratings or documentation of employment. Now, many of the Hispanics who became homeowners find themselves mired in the national housing mess.

...

An examination of that borrowing spree by The Wall Street Journal reveals that it wasn't simply the mortgage market at work. It was fueled by a campaign by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, who all were pushing to increase homeownership among Latinos.

The network included Mr. Baca, chairman of the Congressional Hispanic Caucus, whose district is 58% Hispanic and ranks No. 5 among all congressional districts in percentage of home loans not tailored for prime borrowers. The caucus launched a housing initiative called Hogar -- Spanish for home -- to work with industry and community groups to increase mortgage lending to Latinos.


Discuss.
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Horrible, racist reporting at Amerikkka's 'Wall $treet Journal' | 19 comments (19 topical, 0 hidden) | Trackback
The clue's in the name by Herring (2.00 / 0) #1 Mon Jan 05, 2009 at 02:54:34 AM EST
"Wall Street Journal". Their own readership? (See the UK paper The Sun and their reporting of drink fueled crime for another example.)

christ, we're all old now - StackyMcRacky
You still haven't answered my questions by lm (2.00 / 0) #2 Mon Jan 05, 2009 at 04:45:37 AM EST
(1) What percentage of homeowners in general are Hispanic?

(2) How does the rate of defaulted mortgages provided to Hispanic borrowers compare to the the rate of defaulted mortgages in general?


There is no more degenerate kind of state than that in which the richest are supposed to be the best.
Cicero, The Republic
It's easier to blame the darkies by theboz (2.00 / 0) #3 Mon Jan 05, 2009 at 06:20:24 AM EST
Despite the reality of hispanics being extremely financially conservative as a group, it is easier for simple-minded people to point fingers all over the place, rather than at people who look like themselves and wear nice suits.  I've seen some foreclosures in my multi-ethnic neighborhood.  So far the ones I know of are white and black families only -- no asian, hispanic, middle eastern, or indian/pakistani houses have been foreclosed upon in my neighborhood.

- - - - -
That's what I always say about you, boz, you have a good memory for random facts about pussy. -- joh3n
[ Parent ]
It's also easier to claim racism by ObviousTroll (2.00 / 0) #4 Mon Jan 05, 2009 at 07:05:59 AM EST
than to dispute the facts.

Congress, Clinton and Bush all made getting poor people into homes a priority. Blaming Congressmen for creating the problems that their constituents are now suffering from is not racist. Pointing out that a minority has been victimized by mortgage brokers is not racist.


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[ Parent ]
Let's get the facts, please by lm (2.00 / 0) #6 Mon Jan 05, 2009 at 07:42:53 AM EST
What percentage of mortgage holders are Hispanic? What percentage of mortgage defaults are from Hispanic mortgage holders?

It seems to me that without knowing those two facts, we're unable to offer any assessment of whether the `Hispanic' bit is relevant to the situation. It may very well be. If it is, just how it is relevant is an open question.


There is no more degenerate kind of state than that in which the richest are supposed to be the best.
Cicero, The Republic
[ Parent ]
did you read the article? by ObviousTroll (2.00 / 0) #7 Mon Jan 05, 2009 at 08:07:57 AM EST
"National foreclosure statistics don't break out data by ethnicity or race. But there is evidence that Hispanic borrowers have been hard hit. ... In U.S. counties where Hispanics account for more than 25% of the population, banks have taken back 6.7 homes per 1,000 residents since Jan. 1, 2006, compared with 4.6 per 1,000 residents in all counties, according to a Journal analysis of U.S. Census and RealtyTrac data."

The telling figures are earlier in the article where it points out that both home ownership and sub-prime mortgages grew much faster among hispanics than in the country as a whole, suggesting that hispanics had been targeted by the mortgage industry.


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[ Parent ]
As I matter of fact, I did read the article by lm (2.00 / 0) #8 Mon Jan 05, 2009 at 08:45:49 AM EST
I don't think that the paragraph you excerpted says what you think it does. For starters, it doesn't even mention how many of the foreclosures were on mortgages held by borrowers who are Hispanic. For all you or I know, Hispanics are more likely to live in poor neighborhoods where the number of landlords in hot water far outpaces the nation as a whole. I'm not saying that is the case. I'm saying that we don't know that is the case.

There is no more degenerate kind of state than that in which the richest are supposed to be the best.
Cicero, The Republic
[ Parent ]
This is a key question you presented by theboz (2.00 / 0) #9 Mon Jan 05, 2009 at 08:55:22 AM EST
For all you or I know, Hispanics are more likely to live in poor neighborhoods where the number of landlords in hot water far outpaces the nation as a whole.
Actually, this is a very important question, because a lot of people purchase houses either to flip or rent out.  The whole "flipping houses" phenomenon was a big factor in the escalating home prices, and the most common area for doing that and for buying rental properties is in poor neighborhoods.  if you buy a cheap rental property with a few apartments or a building you can convert into apartments, then rent it via section eight housing, you have a steady, secure income.  I know many people that do this.  In a stable housing market, it's fine.  However, a lot of people overextend their money, and it was very common for people to get no money down loans with the intent of renting the house and having the renter pay (remember that with section eight, the government pays.)  With the crisis now, though, a lot of things have changed and these landlords who were barely able to make payments before now are seeing their ARMs go up, and since their renters are the government, they can't raise rates easily, so they have no choice but to default on the loans, which doesn't bother them much since they don't live in that house and didn't put any money down.
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That's what I always say about you, boz, you have a good memory for random facts about pussy. -- joh3n
[ Parent ]
What difference does that make? by ObviousTroll (2.00 / 0) #10 Mon Jan 05, 2009 at 09:00:51 AM EST
Whether the higher default rate is due to hispanic homeowners losing their houses or to land lords losing their properties, it would still mean that Hispanics are disproportionately losing their homes.


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[ Parent ]
In any case, I do see the point your trying to mak by ObviousTroll (2.00 / 0) #11 Mon Jan 05, 2009 at 09:07:45 AM EST
I just don't see what it has to do with Chuckles' claim that the article was "racist".


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[ Parent ]
The R word doesn't especially concern me by lm (2.00 / 0) #13 Mon Jan 05, 2009 at 09:24:56 AM EST
IIRC, in a past posting, Chuckles made the claim that part of the reason the mortgage crisis came about was due to mortgages given to hispanics with TINs alone rather than the Socials Security Numbers. Which was a silly claim at the time because the best numbers suggested that TIN only mortgages defaulted far less frequently than mortgages done with regular paperwork.

The presumption in this mess was that TIN only loans were primarily going to Hispanic borrowers and the implication Chuckles was then trying to make is that loans that should not have been made to Hispanic borrowers being made to those borrowers was a significant portion of the meltdown in the mortgage world. But the facts at hand suggested that even if TIN only loans were primarily issued to Hispanic borrowers, it was neither here nor there to the crisis because (1) such loans defaulted less frequently than other mortgages and (2) they were a small portion of the total loan market.

The relevance of the question I'm asking is that it say something about how if TIN only loans were primarily issued to Hispanic borrowers and if those loans are representative of loans issued to Hispanic borrowers in question, then one would expect loans issued to Hispanic borrowers to default less frequently than mortgages in general. Those are big assumptions. I'm not fully comfortable making them. But if we knew the answers to the questions I'm asking, it would shed some light on the subject.

As for the question of racism, I can't say I can be bothered to care. I figure that in general, people who earn money based on selling products try to screw anyone that they think is capable of being screwed if it means increasing sales. There are exceptions to this. But I think that in general it holds true.


There is no more degenerate kind of state than that in which the richest are supposed to be the best.
Cicero, The Republic
[ Parent ]
'IIRC' by chuckles (2.00 / 0) #14 Mon Jan 05, 2009 at 09:39:56 AM EST

You don't recall correctly. Loans to illegals are a big problem, but I didn't say anything about TINs versus SSNs, you did. I don't know whether illegals preferred to use their own TINs or your and my SSNs on their mortgage applications, but they were getting their mortgages.

The larger point that keeps escaping your comprehension is that it was a bipartisan effort to pander to Latinos that led to a general debasement of lending standards. It was this debasement of lending standards that led to the current subprime (and soon to be Alt-A and Option ARM) mess.



"The one absolutely certain way of bringing this nation to ruin [...] would be to permit it to become a tangle of squabbling nationalities"
[ Parent ]
I think that's overstating the case. by ObviousTroll (2.00 / 0) #15 Mon Jan 05, 2009 at 10:28:03 AM EST
The larger point that keeps escaping your comprehension is that it was a bipartisan effort to pander to Latinos that led to a general debasement of lending standards.
The article refers to a program aimed at Hispanics, true, but similar efforts were also underway to increase home ownership among all poor Americans - black, white and latino. I'm pretty sure that up until last summer, all those congressmen were still patting themselves on the back and bragging about them instead of now flailing around and blaming the companies they previously encouraged.




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[ Parent ]
So I misunderstood this post? by lm (2.00 / 0) #17 Mon Jan 05, 2009 at 12:04:36 PM EST
MLP from March 31st, 2004

Please explain your point, then. It appears that it has eluded me.


There is no more degenerate kind of state than that in which the richest are supposed to be the best.
Cicero, The Republic
[ Parent ]
Yes, you misunderstood it. Try reading again. -nt by chuckles (2.00 / 0) #18 Mon Jan 05, 2009 at 12:08:26 PM EST


"The one absolutely certain way of bringing this nation to ruin [...] would be to permit it to become a tangle of squabbling nationalities"
[ Parent ]
If that's not what you meant ... by lm (2.00 / 0) #19 Mon Jan 05, 2009 at 12:32:50 PM EST
... I've got 3 questions instead of two.
  1. What is the evidence that ``millions of illegals have gotten mortgages in the US''?
  2. What proportion of mortgages given to Hispanic borrowers have defaulted?
  3. How does this compare to the default rate in general?


There is no more degenerate kind of state than that in which the richest are supposed to be the best.
Cicero, The Republic
[ Parent ]
Okay, which part is racist? by ObviousTroll (2.00 / 0) #5 Mon Jan 05, 2009 at 07:39:49 AM EST
The part where politicians created problems for their constituents? Or the part where sub-prime mortgage companies aggressively marketed themselves to immigrants who were unlikely to have the financial skills to accurately evaluate their products?



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'Civil rights complaint targets ... rating firms' by chuckles (2.00 / 0) #12 Mon Jan 05, 2009 at 09:08:12 AM EST
LA Times:
In what is apparently the first legal action of its kind, an association of community-based organizations has filed a federal civil rights complaint against two of the three largest Wall Street rating firms, charging that their inflated ratings on subprime mortgage bonds disproportionately caused financial harm to African American and Latino home buyers across the country.

...

The filing cites multiple studies that found that African Americans and Latinos received a disproportionate share of subprime loans during the housing boom years. A Federal Reserve study in 2006 estimated that 45% of mortgages extended to Latinos and 55% of loans to African Americans were subprime -- a utilization rate "three to four times that of non-Hispanic whites."


"The one absolutely certain way of bringing this nation to ruin [...] would be to permit it to become a tangle of squabbling nationalities"
people shouldn't borrow money by dmg (2.00 / 0) #16 Mon Jan 05, 2009 at 11:47:05 AM EST
from usurious organizations unless they are prepared to accept the consequences. 
--
dmg - HuSi's most dimwitted overprivileged user.
Horrible, racist reporting at Amerikkka's 'Wall $treet Journal' | 19 comments (19 topical, 0 hidden) | Trackback