If too many blacks and Hispanics have poor credit ratings, the problem is obviously with the credit reporting agencies. Obama is fixing the problem.
Bullied by President Obama’s new consumer watchdog, the Big Three consumer credit bureaus have curved credit scores for deadbeats. The capitulation is a bad omen for the economy.
The credit-scoring system underpins our economy. If lenders and insurers can’t rely on it, they can’t make sound judgments about the risks involved in millions of transactions each day.
Then last summer, the administration fed a front-page story to the Washington Post lamenting how “credit scores of black Americans have been systematically damaged” by subprime foreclosures, “haunting their financial futures.” A week later, CFPB announced in Detroit that it would start policing Experian, Equifax and TransUnion.
Make credit easy. Don’t worry about past payment behavior. Give out mortgages for the asking. Ability or willingness to pay is meaningless. Everybody should get a mortgage. What could go wrong?