Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Buffett’s Mobile-Home Unit Should Be Probed, Lawmakers Say

Notify me of new replies via email
Mortgage Professional America | 14 Jan 2016, 06:27 AM Agree 0
U.S. lawmakers called for federal investigations into Clayton Homes, the mobile-home business at Warren Buffett’s Berkshire Hathaway Inc., after the Seattle Times and BuzzFeed News wrote that the company targeted minority borrowers and charged them higher interest rates on average than whites
  • SBHarkness | | 14 Jan 2016, 02:52 PM Agree 0
    Why is there no mention of FICO scores? Of course someone with lower FICO scores is going to be charged a higher interest rate than someone with higher FICO scores. This is all about risk management and most likely nothing to do with discrimination! People with higher FICO scores earned those scores by paying their bills on time, and four other categories. Those with lower FICO scores also earned those scores by not paying as agreed. This is a favorite tactic of the likes of Maxine Waters and her ilk. They look at things in black & white. If more black people have bad credit than white people then they (as a group) are going to be charged a higher interest rate. However, if Maxine Waters looked at FICO scores and then looked to see what interest rate was charged then checked the box that discloses race...I am sure she would find that minority applicants with the higher FICO scores were given the benefit of the same lower rates as others with the same FICO score, white, tan, or polka dotted doesn't matter when it comes to assessing risk.
Post a reply