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> Banks don't use race as criteria for loans, just as auto insurance companies don't use race as criteria for setting rates. If this article is correct, then t
by gwd 6y ago
> Banks don't use race as criteria for loans, just as auto insurance companies don't use race as criteria for setting rates.
If this article is correct, then this claim is wrong. Banks may not directly use race as a criteria, but the claim is that they use race as a criteria for property value, and then use property value as a criteria for loans:
> Five of his properties were in a decent state of repair and some had sitting tenants, while three needed a complete refurbishment. ...One bank finally sent someone on location to assess his properties 12 weeks later. They valued the buildings at zero dollars and just over a dollar per square foot for the land only. As the rules for most banks say a property must be valued at a minimum of $50,000 (£39,000) to get a line of credit against it, his case was shut.
Counting a building with active tenants paying rent as being valued at $0 is ridiculous.
- MattGaiser 6y ago> Counting a building with active tenants paying rent as being valued at $0 is ridiculous. Depends on how much rent they are paying, what other large costs repair costs might exist for the building, and whether anyone is buying in that neighbourhood.
- macspoofing 6y ago>Banks may not directly use race as a criteria, but the claim is that they use race as a criteria for property value, and then use property value as a criteria for loans ... You have to do the leg-work to show that Banks have a policy that is in intent racist because every policy you can ever think of will have a differential impact on any group you create - because groups will never be perfectly uniform. >Counting a building with active tenants paying rent as being valued at $0 is ridiculous. Not necessarily. This is why these articles are so terrible. They didn't do investigative journalism. They didn't do the legwork. I can tell you right now, there is a reason why it is valued at $0 - we just didn't get that reason because the journalist is lazy.
- bluntfang 6y agoRedlining is a real practice done by banks and credit issuers that use race criteria based on where you live to discriminate against people of color. https://en.wikipedia.org/wiki/Redlining https://en.wikipedia.org/wiki/Redlining
- deleted 6y ago[deleted]
- kyrieeschaton 6y agoRedlining ended over fifty years ago. Pick a different bugaboo.
- bluntfang 6y agoAccording to this article, it hasn't. Provide contradictory evidence.
- tomcam 6y agoBank loans are very hard to get for properties like this. Further, there are many extra opportunities for minority owned businesses. The hard truth is that being black is an advantage for loan seekers, not a disadvantage. It simply doesn’t outweigh the risk of failure. My spouse is a minority but with no interest in business. Man, would I like to take advantage of that, but I’m on my own ;)
- reportgunner 6y ago> Counting a building with active tenants paying rent as being valued at $0 is ridiculous. No it's not. If they live without running water, no toilet or heating with a leaky roof the tennants don't magically add value to the building.