More Obama Destruction: White House Wants to Offer Credit to Deadbeats and Illegal Immigrants

Article posted on May 21st, 2015 by WhatAmIMissingHere

WAIMH Red ArrowBy Investor’s Business Daily

As part of its amnesty program, the Obama regime seeks to expand credit to a whopping 45 million potential deadbeats — including illegal immigrants — whose credit files are too spotty even to score for risk.

In a just-released federal report, the administration portrays these “credit invisibles” as victims of a traditional credit-scoring system. And since most are minorities, it claims that excluding them from the financial mainstream is discriminatory.

“These results suggest that the problems that accompany having a limited credit history are disproportionately borne by blacks, Hispanics and lower-income consumers,” the 37-page Consumer Financial Protection Bureau report concludes.

To remedy the “credit inequality,” credit reporting agencies are being pressed to generate scores for this high-risk group based on payments of cellphone and utility bills, as well as immigrant remittances.

It hopes that once they secure a FICO score, they can move a step closer to qualifying for mortgages, car loans and credit cards. Without credit scores, Cordray says, these consumers are a target for “predatory lenders” such as payday lenders who charge high interest rates.

But analysts say most of these “unscorables” are not creditworthy, and according to preliminary estimates, their median credit score falls well below the subprime cutoff (535 vs. 620). Public records show many are subject to third-party debt collection and tax liens.

This means more than 45 million — or roughly one in five U.S. adults — have credit histories too sparse to generate a credit score. Imagine the credit crisis the financial sector could face if 45 million deadbeats and undocumented immigrants are mainstreamed into the credit market.    (my emphasis)

READ all of Investor’s Business Daily’s comments on Obama’s pushing banks into the riskiest borrower pools here.

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