Saturday, April 1, 2023

"Race-based Lending" (RBL) At SECU - Everybody Knows That RBL Is Fair! 

 Yes, and for centuries humanity firmly believed the Earth was flat...


....and apparently Chairman Ayers and the SECU Board suspects it still is - an SECU DEI (M. Haze) debacle!  

 "There [used to be] is a Difference!*




SECU New Culture/New Direction - "Race-based Lending" (RBL) - It's Legal, Everybody Else Is Doing It! M. Haze?

     A      B      C      D     E

   👍     👎     👎    👎    👎 As of March 1, 2023, Chairman Ayers and the SECU Board of Directors have adopted "race-based lending" (RBL) as the basic lending principle at the State Employees Credit Union. Kinda makes a mockery of SECU's "alledged" promotion of Diversity, Equity and Inclusion (DEI), doesn't it!

SECU Board members are particularly cynical in ignoring the race, age and, gender bias they have  introduced into the SECU lending decision process. As an SECU Board member, being associated with UNC or Duke; or having a law degree; or in several cases both; should give one a keen understanding of the negative, disparate impact "race-based lending" has on over 50+% of SECU borrowing members (according to the SVP "SECU Lending Integrity")   

All the credit bureaus claim with a straight face - and a wink and a nod to lenders - that the only factors used in credit scores are:

1.  35% - Payment history:Whether you've paid past credit accounts on time 

2.  30% - Amounts owed:The amount of credit and loans you are using 

3.  15% - Length of credit history:How long you've had credit 

4.  10% - New credit:Frequency of credit inquires and new account openings 

5.  10% - Credit mix:The mix of your credit, retail accounts, installment loans, finance company accounts and mortgage loans

The SECU Board is rightfully ashamed of publicly publishing the "not really competitive" interest rates it is charging SECU members for loans and the credit score tier breakpoints.  Chairman Ayers, in those infamous Fireside Chat tapes, claims that he and the SECU Board are "fully transparent". But, why argue about that? We already know Chairman Ayers, has a documented history of lawyerly "weaseling" on his phraseology - y'know like no "formal proposal" to merge. 

But here, as long as you won't tell anybody, are those "secret tiers" as given to the SECU Board in approving the "race-based lending" scheme: A - 720-850,  B - 660-719,  C - 600-659,  D - 540-599,  E - 300-539.

SECU members as of March 1, 2023 under "race-based lending" are now paying higher loan rates (in many cases much, much higher!) if they are in the B,C,D,E tiers. Let's see who the SECU Board has set up for the kill with "race-based lending":

Here are some average scores from credit bureau files:

* Average credit score in U.S. - 703   You'll note that 703 falls in the SECU "B" tier, which means the SECU  Board has designed the "race-based lending" system to be able to smack an extra rate charge on the average rate member.   

*Average credit score by race: Here's where the SECU Board clearly favors "race-based lending"

Average score black folks : 677  (SECU "B" paper) - will be smacked with higher rates!
Average score white folks:  734  (SECU "A" paper) - will receive most favorable rate without surcharge.
* Average score by age: Discrimination against the young too! - a double whack in the almost SECU "C" tier
Average credit score for folks in 20's: 660 (SECU "B' - minus, minus!" paper)
Average credit score for folks in 70's: 754 (SECU "A" paper)

* Average score by gender: And for good measure let's whack the ladies while we're at it with a "B" score!
Average credit score for females: 708 (SECU "B" paper)
Average credit score for males:    720 (SECU "A" paper)
👌Now here is the "BIG TRUTH" question for you, ready?👌
If the credit bureaus really don't consider discriminatory profiling in their credit scores, how are they able to compute the average borrower credit score by race, age, and gender? 
As Aretha would say, "Who's zoomin' who?" Well, it's whoever approved "race-based lending" for SECU - give you eleven guesses!
Well, we had the Gym Haze situation where FATCAT kids got put on the street in favor of an executive gym. Now we have the discrediting of the SECU DEI programs with "race-based lending".  Since that's really going to "fog up" the much touted SECU DEI selfie, guess we should call this one Mist Haze , or "M. Haze" for short!