“If this rule goes through as it stands, the demographic of borrowers who get (favorable rates) will be white and wealthy,” said David Stevens, chief executive officer of the Mortgage Bankers Association and former commissioner of the Federal Housing Administration. “African-American, Latino and first-time home buyers will be charged higher prices.”
Stevens was commenting on 376 pages of proposed rules for “Qualified Residential Mortgages,” which would require a 20 percent down payment and limit a borrower’s debt payments to no more than about one-third of income.
So let’s see if I get this right. Stevens is saying that if you’re not White then:
You are consigned by your race to take on debt you cannot pay (exceeding 36% of gross income.)
You are consigned by your race to not be able to save two hundred and fifty dollars a month (that is, because you’re black you must have that iPhone, you must have that beer, you must have that night out on the town even though you can’t afford it.) Why $250/month? Because that, for ten years, results in $30,000 in savings, which is 20% of a median $150,000 house, and if you make a roughly-median $50,000 in household income, you can then afford to buy said house.
If you start at 18 by the time you’re 28 you can buy that house. By the time you’re 58, prior to your retirement at 65, your house is now paid off and owned free and clear.
What David Stevens, Chief Executive Officer of the Mortgage Bankers Association, has in fact said is that if you’re black, hispanic or a “first-time” homebuyer you’re too stupid to be fiscally responsible with your own money.
That is, by virtue of your race this man thinks you’re incompetent and thus you need to be able to do something even more stupid to be able to live in a home you cannot afford to actually buy.
Why is this sort of outrageous and blatant racism – by people like Stevens – tolerated in today’s world?