• merc@sh.itjust.works
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    1 day ago

    Banks like making money. Mortgages are a great way to make money for a bank.

    If you’re being turned down by the bank, it’s not because the bank is passing up an opportunity to make money in order to keep you from owning a home. It’s because their risk models say that if they give you the loan, they might not make money.

    • UnderpantsWeevil@lemmy.world
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      1 day ago

      If you’re being turned down by the bank, it’s not because the bank is passing up an opportunity to make money in order to keep you from owning a home. It’s because their risk models say that if they give you the loan, they might not make money they think they’ll make more money loaning that cash to your landlord.

      Banks fuck up all the time. They are not run by immaculate money wizards. The idea that you aren’t getting a house loan because you’re a big risk, but Sam Bankman-Fried secured $60B because FTX was a safe bet, hasn’t born out in practice.

      They do show a heavy bias towards people who already have (or appear to have) a great deal of money. So that institutional bias fucks individual lenders over in the long run, while creating a great deal of financial risk at the top of the wealth pyramid.

    • redsand@infosec.pub
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      23 hours ago

      No no. Their AI models just think you’re black and you’re trying to buy in the wrong zipcode

      Redlining guys. It’s trained in.