Posts Tagged ‘F*** FICO’

Via BrokenCredit. Short sales under HAFA will now be reported as paid in full. That’s a great step forward in achieving equilibrium…of course, its just under this program and it’s taken six years to get even this much.

 

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The question I have after reading this article is, “Do we as a society want to live in an environment where charging 350% APR is even debatable as unethical?”

It is so wrong that things are so upside down, that we allow the poorest among us to be charged 350 percent…especially when the richest among us have access to vastly more sums at zero (or close) percent.

I don’t have an answer, just a deep sense of the wrongness of this dichotomy.

 

The bank settlement doesn’t address the rampant fraud perpetuated by the banks. When asked, prosecutors and politicians say this is just the initial step. I don’t agree; when the dust settles (what little dust this will create), the banks will point to this settlement and say, “But we’ve paid our dues.” Further, politicians will look to this and say, “We made the banks pay!” Neither of which is true.

 

There are entirely too many “coulds” and “mights” in this article. One other detail jumps out; if California receives 9 to 15 of the 25 Billion, a “couple hundred million” per remaining state is not valid. These banks are being given a free pass, especially when you consider how much the taxpayer has given them. We are literally paying the settlement for them.

 

 This is being touted as good news.  It is not.  For relative chump change, these banks will be indemnified for their crimes.  The same banks will then charge fees, recouped from the payout no doubt, to help a limited number of people. Be assured they are right now looking for any loophole that will allow them an out.    Be also assured their friends in the judicial and legislative systems are helping insert more of the same loopholes. 

 Most states allow a lender to pursue a deficiency judgment for years after a foreclosure.  Further, acknowledging that debt to a collector during those years can “refresh” the statute of limitations on thr debt.  This is why a short sale or bankruptcy is the preferable route; it deals with the debt up front.  

Banks are not your friend.  They are not your ally.  They do not – as an institution – have your best interests at heart. 

 Damn criminals.  That’s all I have to say about that.

 From Kelo to this most recent ruling, the judicial system seems hell bent on placing the corporation above the citizen.  By forcing arbitration, they have given big business – banks, specifically – yet another lever over the consumer.  

Get out of debt and stay that way.  Remove their control mechanism.  

I am aware that last sentence sounds like something a conspiracy theorist would say.  I am okay with that.

I do not think so, but it can be an indicator.  Taken alone, it would (IMHO) be an unfair discriminator against a potential employee.  However, it remains the employers perogative to use this as a criteria for employment.  Bigger picture, I think it’s another way that those on the edge of the financial abyss are discriminated against by the FICO system.