Doc 224899

Bank Failures Way Up

Some people can pay off a mortgage, and some can't. It's easy to predict who can and who can't.

It isn't very PC when one tries to explain the demographic patterns that emerge when the simple criteria are applied, and some banks avoided the issue rather than risk confronting it or trying to work around it. Whenever the financial consequences of not applying those simple criteria got concentrated in an organization, bank failure resulted.

So here's the conundrum: do you let a bank go broke and toe the PC line, or do you apply simple criteria to mortgage applicants and risk crossing the PC line and have your career get torpedoed.