https://finance.yahoo.com/news/wells-fargo-rejected-nearly-half-215359468.htm
15 replies (most recent on top)
Read about the methodology used In email.
I'm as critical as anyone else about what goes on at WF. And WF's leadership certainly deserves a lot of what we all see in the headlines.
But in this case I don't think WF has done anything wrong. Race is NOT taken into account and is NOT part of the equation here.
The question I have is "why are the other banks not showing equivalent results?". Financial metrics are financial metrics, across the board. Perhaps WF is more heavily weighted in the "under served communities" where situations the lead to credit problems are more prevalent?
There is a reason. I don't think a journalist (who may have a bias) is going to find it.
Yes, we should not be listening to this pseudo-intellectual tripe. Here are the words of a true intellectual: " I’m speaking with myself, number one, because I have a very good brain and I’ve said a lot of things... I know what I’m doing and I listen to a lot of people, I talk to a lot of people and at the appropriate time I’ll tell you who the people are. But I speak to a lot of people. My primary consultant is myself, and I have, you know, I have a good instinct for this stuff"
I'm not really interested in pseudo-intellectual tripe.
Loans are determined by mathematical models. Each loan entails risk. The bank has to weigh its current risk appetite. The bank does not consider race at all.
If a certain population group cannot meet the qualifications needed for a loan, well that is too bad. Banks aren't in the business of giving charity handouts.
Underwriter here. Never in the loan process do we know the race of the people we are underwriting.
@twj+1fNu6YHJ, your decision tree example is wrong. A decision tree land certainly lead to disparate, biases, and even illegal treatment on a protected class. For an example of how bias can be inadvertently introduced into any machine learning model, please take a look at the book “Weapons of Math Destruction”.
Mortgage underwriting is box checking, and basically completely algorithmic. I really doubt there was any discrimination here at all.
If you've ever seen some of the code for software that handles applications, there is a decision tree. They weigh in factors from credit scores showing debt levels & debt utilization, the relevant FICO scores (different scoring for auto, mortgage, etc), income, etc.
If you don't meet the criteria, your loan application is rejected. Race isn't a factor in the decision.
That a segment of the population gets rejected for loans is more of a statement of their financial decision making than anything the banks are doing.
@oyb+1fNu6YHJ...and park illegally in handicapped parking spaces...
What a joke, all this is so tiring. I see many minorities drive around my area in nice luxury cars that have expired plates.
This tells me they either can’t afford to maintain the vehicle, or they are too lazy to get the tabs renewed.
Either way this is a factor that explains the poor spending habits.
Yahoo is worthless, they basically use reddit as a source. Reddit is full of neck beard tards I hate more than AOC.
Not rejecting applicants that don't qualify for loans is how the 2008-2009 financial crisis happened. It has nothing to do with race. You qualify or you don't, and I'm willing to bet that more white people are declined than black. I'm sure Yahoo will get right on that.
Most importantly, those blacks didn't qualify for the loans based on predetermined criteria.
I know we live in times where everything is supposedly racist (it's not), but this "story" is a nonstarter.
Old news. Everyone knows how cr---y Wells Fargo is. Customers that stay/come have no one to blame.
Yahoo isn't even a new org, it a propaganda site to brainwash the tiktok crowd. This so called story was posted a week ago and had serious flaws. Data was missing for JP Morgan, Bank of America, CITI... no doubt because one of them paid for the write up.