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U.S. Civil Rights Commission Releases Report on Civil Rights and the Mortgage Crisis
September 25, 2009The U.S. Commission on Civil Rights has released an enforcement report examining civil rights issues with respect to the mortgage crisis: Civil Rights and the Mortgage Crisis. The Commission addressed the question of whether the actions taken to affirmatively further homeownership unintentionally weakened underwriting standards and lending policies to the point that too many borrowers were vulnerable to financial distress and a heightened risk of default. The report examines federal policies adopted to increase minority homeownership as well as critiques regarding the relationship of such policies to the mortgage crisis. In addition, the report analyzes the policies and activities of various federal agencies charged with enforcing laws against predatory lending, mortgage fraud, and mortgage lending discrimination. The report also examines the role of credit scoring and other factors used by lenders in the granting and pricing of loans and the issue of whether such tools are objective predictors of creditworthiness. Full release.