A rant about biased lending stirred the originator pot

by Justin da Rosa08 Mar 2016
Did Hillary Clinton insinuate originators are bigots? Our readers weigh in.

“This is a very dangerous lie/fraud from Clinton,” one reader wrote in response to an article about Hillary Clinton’s criticism of the mortgage lending industry. “This ‘everyone is a victim’ she has going on is really not ‘presidential.'"

During a recent town hall meeting, an audience member asked Clinton what her administration would do to ease fears of another housing crash.

“For many … achieving home ownership is synonymous to achieving the American dream. Yet many of our families were hit particularly hard during the great recession and housing bust,” the man said. “What would a Clinton Administration do to ease the fears of homeownership among our community?”

Clinton skirted the question and instead accused the lending industry of being racially biased.

“You know, you are three times more likely to be able to get a mortgage if you are a white applicant than if you’re Black or Hispanic – even if you have the same credentials and you’re presenting it to the people who are looking at it.”

And while many have been critical of Hillary’s response, some readers have commented in her defense.

“Clinton is right. Banks have had to pay huge sums of money for discrimination in lending. The truth is bitter,” a reader wrote. “She is right on the money.”

Still, there were many originators who stood up for the industry – pointing to the fact that all borrowers, regardless of race, face more hurdles today attaining a mortgage than they would have in previous years.

“His feeling of jumping through hoops is common in all the races, sexual orientations, and ages of the people applying for a mortgage in the Dodd-Frank area,” one MPA reader wrote. “This is an environment that Clinton was a big participant in making a reality in her support of Dodd-Frank; which by her statement was intended to create discrimination.”

COMMENTS

  • by John S | 3/8/2016 3:05:30 PM

    Hillary Clinton will say or do anything to get what she wants. I think she forgets that it was her husbands administration that pushed all sorts of LMI programs and first time buyer programs that actually got the housing bubble going. Im not dumb enough to think there aren't slimy mortgage brokers out there screwing people over. Just like I know that there are slimy politicians out there, saying and doing whatever to get what they want. I guess in the end, there is bad and good in everything. We as mortgage brokers need to do our jobs but the politicians and all the liberal pundits would be doing better if they would maybe tell people to take some personal responsibility rather than blame blame blame

  • by cheryl m | 3/8/2016 3:21:03 PM

    It's sad that in today's day and age that we are still at this point elevating discrimination. I hope for all of us we can leave this earth without it anymore. However, today here we are....As a presidential candidate, I do not believe it is her(anyone's) best interest to act or make statements intended to discriminate; of course, I know she's not above this or capable either. Seeing how her Democratic administration further supports policy change, guideline and enforcement that has crippled this industry, I would also hope no Mortgage related or Real Estate related industry established endorses anyone with this character.

  • by GLF Mortgage Professionals | 3/8/2016 7:04:25 PM

    Given this comment by Mrs. Clinton: "You know, you are three times more likely to be able to get a mortgage if you are a white applicant than if you’re Black or Hispanic – even if you have the same credentials and you’re presenting it to the people who are looking at it.”

    It's time for the Industry to remove the Government Monitoring from the Residential Loan Application (1003), because my thirty years in the profession as a Loan Originator I have never had a client who qualified for a mortgage turned down because of race! I have had clients turned for insufficient income, or poor credit, or insufficient funds to close but never because of the color of their skin or ethnicity or sex.
    Remove it from the application and people can qualify on their own merits and credentials.

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