Biden wants to change how credit scores work in America

The credit industry isn’t working if you ask consumer advocates. The Big Three credit agencies—Equifax, TransUnion, and Experian—are black boxes, gathering and selling consumer data, grading us on our financial behavior without letting us in on how they do it, and perpetuating damaging racial disparities while they’re at it.

[OCS: The credit reporting agencies were never designed to be instruments of social justice. They merely report an individual’s past payments of obligations and the amount of credit available. They do not collect income data, they do not assess property valuations, and they do not make lending decisions.

In fact, most lending decisions on mortgage products are driven by the guidelines issued by the largest quasi-governmental agencies, Fannie Mae and Freddie Mac.

What was most damaging to the mortgage marketplace and the broader financial system was the government’s insistence on relaxing lending standards to provide home mortgages for people who couldn’t even afford payments on a car.]

That’s why consumer advocates are calling for a public credit reporting agency, and why President-elect Joe Biden has adopted a proposal for just that from left-leaning think tank Demos.

[OCS: These are the same progressive socialist democrats who nearly destroyed the financial system with their nonsense.

Consider the claim of former House Financial Services Committee Chairman Barney Frank (D-MA) when he asserted that the two mortgage giants, Fannie Mae and Freddie Mac, who he artificially propped up, were essentially a “public policy instrument of the government.” How very Marxist of him.]

The proposal suggests building a publicly run credit reporting agency within the Consumer Financial Protection Bureau (CFPB) that would eventually, over the course of seven years, replace the current for-profit credit system in America.

[OCS: Consider the ramifications of this proposal.

One, the government would have the legal right to monitor the bank accounts and financial affairs of every American and create the largest government dossier on every individual – especially when that information is aggregated with other commercial databases and self-reporting lifestyle comments freely available on social media platforms.

Two, decisions on reporting criteria would be made based on political considerations, namely pandering to a particular constituency which forms the current backbone of the Democrat Party.

Three, the progressive socialist democrats want dominion over the nation’s healthcare system with a government-run single-payer system – starting by destroying private insurers that could not compete with subsidized government insurance policies. They are now attempting the same crushing blow to the financial industry, starting with tampering with credit scoring mechanisms.

Four, as for safety and security of your information, remember the government lost information, included security clearance reviews, on every government employee, past and present when their OPM (Office of Personnel Management) was hacked by the Communist Chinese.]

The agency would be steered by consumer need rather than the bottom line, according to proposal author Amy Traub.  “Today, credit reports, which are issued by just three large private companies, are rife with problems: They often contain errors, they leave many ‘credit invisible’ due to the sources used to generate a credit score, and they contribute to racial disparities,” Biden’s plan for investing in communities through housing reads. <Source>

[OCS: Like so many things in the government, it’s not their money, so there is no personal consideration or concern how it is used to benefit vote-buying politicians as they pander to their class, racial, and sexual constituencies.

No credit scoring system can make creditworthy borrowers out of uncreditworthy individuals. Even the process of government-guaranteed loans handed out like jellybeans has proven disastrous – hence the crisis with student loans.

I am not aware of any database, especially government databases, that are not “rife” with errors and other problems. Of course, given the lobbying powers of the financial industry and the corruption of today’s politicians, I would look for a State Capitalism model as proposed by the Communist Chinese. The private companies would continue to do what they do provided there was money flowing to the government and campaign support funds made available to individual politicians.

As for Biden’s housing plan and the destruction of suburbia, that is a different fight for another day.]

Disparate impact, often referred to as unintentional discrimination, is a statistical strategy of the progressive socialist democrats that is based on the faulty premise that each action involving a class protected by law should produce results that at least as close to or above that classes’ percentage occurrence in the general population.