Housing: If you need federal subsidies to pay your apartment rent, it's a good bet you can't afford to buy a new home. But don't tell that to the Obama regime. It's pressuring banks to lend even to Section 8 voucher recipients.
In a new regulatory bulletin, the Consumer Financial Protection Bureau warns home lenders that they can be investigated for discrimination if they reject Section 8 vouchers as a valid source of income for low-income minorities applying for mortgages.
The agency argues that underwriting policies that exclude such welfare payments could have a "disparate impact" on minority borrowers and therefore violate civil-rights laws.
"The bureau has become aware of one or more institutions excluding or refusing to consider income derived from the Section 8 HCV Homeownership Program during mortgage loan application and underwriting processes," the three-page bulletin said.
Explained CFPB Director Richard Cordray, "Consumers should not be put at a disadvantage just because they receive public assistance." And strapping them with 30-year debt doesn't put them at a disadvantage? Did Cordray snooze through the subprime crisis?
(Excerpt) Read more at news.investors.com ...
