Zero-sum issues: The Telegraph’s outcry over tighter lending standards for applicants with children
February 4, 2011
This article in the Telegraph was originally linked to from Naked Capitalism’s Links of the Day on Wednesday (2/01/11)
Yves and I seem to have a similar reaction: “I hate to sound heartless, but this sounds completely logical.”
Perhaps I’d even go a bit further…
The article recounts tales of applicants with children qualifying for significantly less (say 10-20% less) when reporting children as dependents vs. applicants with no children. Apparently, this is a new development in the UK.
The article isn’t quite overtly critical of the practice, but only appears to consult those who are (mortgage brokers, obviously, would prefer clients qualify for larger mortgages). Or at least, the article’s author doesn’t appear to bring the broker’s complaints of unfairness to those who might refute those reasons.
One broker is quoted saying:
“It is absolutely unfair to penalise people with children by reducing their capacity to borrow compared with a single person or a childless couple.”
Reasoning as to why this is unfair was not provided… and certainly eludes me. I don’t think anyone has children (intentionally…) without factoring in the financial costs related to child rearing… I don’t see why mortgage underwriters shouldn’t have the same concern.
…
“Some brokers describe the new approach as “nonsense”. For example, only children up to the age of 18 will see your loan cut, whereas many parents spend far more on their offspring above this age as they support them through university.”
And is University essential? Will parents miss mortgage payments to keep up their kids’ tuition bills up-to-date? Or are they more likely to tell Jr. to get a summer job, student loans, or come back home to the inferior and far less fun local school? The costs of feeding, clothing, and KEEPING ALIVE a young child, however, are ~20-yr commitments made more-or-less at the time of birth.
…
“Finally, brokers question the logic of offering a childless young couple a larger loan today, when in two or three years they may have a family, and not be able to remortgage for the same amount.”
Good lord! You’re right, Mr. and Mrs. Broker! Situations CAN change! Where we know childless couples are liable to have children in the future, we KNOW couples WITH children would cease their breeding before applying for a mortgage! I think it’d be best to assume all applicants may have 2.5 children in the future, price that in, and also assume they lose their income for 6m over the next 5 years as it’d just be prudent. Can’t be allowing potential changes to an applicant’s financial standing in the future, based on nothing, be ignored.
The author does provide a very reasonable, albeit general, quote that could be considered a response to some of the above broker-generated ridiculousness:
“The CML [Council of Mortgage Lenders] defended the lenders’ actions. A spokesman said: “If you have to have proxies for family expenses, the cost of children is a reasonable one.”"
Lend based on the client’s current major financial commitments that are likely to persist through the term (or much of the term) of the mortgage? Dastardly lenders are punishing families!
And if lenders continued to ignore a major financial outlay that would take precedent over mortgage payments for most people? Welllll, that means less prudent lending criteria, more losses by the banks… meaning more bailouts from taxpayers and, in the less extreme case, higher relative risk criteria for those selfish childless would-be homeowners who have the hubris to believe they can borrow more just because they choose to spend less. The gall!
(See how that zero-summy thing sorta works?)
… and the cow goes moo
(I’m still here! I’ve been busy…)
End “children of alumni” admission preferences!
September 30, 2010
Or so says this NYT editorial. And I wholeheartedly agree. Read the whole thing. It’s short and has some excellent legal explanations.
My most enduring memory from my decade+ past US university admissions experience was that two of the Ivy League schools I applied to had three to six spaces for “impressive people you know that would make us more likely to admit you” [I'm paraphrasing] as part of the actual application.
WTF does my daddy being a judge or my great-aunt being Chief Medical Officer have to do with my qualifications to study at your school??
I can’t believe this ever existed or there can even be a debate on this subject. When is “Who do you know?” or “Who’s your daddy?” an acceptable question to ask in any professional setting?
… and the cow goes moo
So I’m watching last night’s TDS online (Canadian link here, US link here), and I know I’m not supposed to take anything Jon Stewart says seriously, even if he makes it seem pretty serious because he repeatedly insists he’s not a news program… even though I’m pretty sure viewers treat news from TDS, ex-sarcasm, with the same seriousness as news from CNN (a view made legitimate. From Wikipedia: “A 2006 study published by Indiana University tried to compare the substantive amount of information of The Daily Show against prime time network news broadcasts, and concluded that when it comes to substance, there is little difference between The Daily Show and other news outlets.”)
But anyways… in the third segment, Jon goes into a big histrionic rant about how Iran’s decision to stone adulterers keeps the rest of the ‘civilized’ world from treating them politely and… condoning their nuclear ambitions?
Since the segment got no laughs and wasn’t funny, I’m going to assume that it was at least partially meant to be taken seriously. And I thought that was fucking ridiculous. This seems exactly like a claim you’d hear on CNN, Fox News, MSNBC or whichever (depending on which party is in power), legitimizing the current government’s stance, acting as if the way America (or any nation) treats another country has to do with morality and principles. Adorable and utter onanism.
You remember our buddies in Pakistan? Who also have nukes? And who the US sends billions in military aid too? THEY STONE PEOPLE TOO! (Wikipedia, as always, comes through by confirming that adultery is officially punishable by death). But of course this entirely different, since the incident cited by UPI was a whole 2.4 years ago. And this case from two months ago described by McClatchy doesn’t count since the man got away. And stoning was sentenced for the much more heinous crime of… adultery? But since the Pakistani tribal court that sentenced them is having both the man and the woman stoned, I guess that makes it ok?
To recap: In Jon Stewart’s world, where nations castigate, isolate, or reward nations based on the civility of that nation’s treatment of adulterers, stoning women for adultery justifies isolation and military provocation. Stoning a man and a woman for adultery justifies fabulous cash prizes.
We should have left this bullshit self-aggrandizing of ourselves through the rationalization – or moralization – of the positions of our nation in kindergarten. Jon Stewart and the Daily Show should honestly be ashamed of themselves.
Oh, and btw… Remember that country that the US has been essentially been in control of for over eight years and whose war hasn’t been declared over? Last month the Beeb said a couple was stoned to death in a public square for adultery. Though Afghanistan doesn’t have any nukes. Unless the US brought any with them. Umm. Ya.
… and the cow goes moo
I’m sure this story is making it’s rounds all over the internet, but it deserves some attention so I’m going to link to it too.
From the Guardian: “Arab guilty of rape after consensual sex with Jew“
Summary: Palestinian in Israel tells a Jewish girl that he’s Jewish, is seeking a serious relationship, and wants to get all up in her. She responds: “You had me at ‘Jewish’” and they (appear to) immediately get to humping. She goes home and Googles him or something (note to all faux Jewish bachelors out there: Give a fake name and number) and finds out he’s not so Jewish after all and goes to the ultimate arbiter of romance, the Israeli Justice System, to punish the deceitful prick.
Money graft from one of the judges, Tzvi Segal:
“”The court is obliged to protect the public interest from sophisticated, smooth-tongued criminals who can deceive innocent victims at an unbearable price – the sanctity of their bodies and souls…”
Mr. Segal tactfully omits any mention of the man’s ethnicity in the quotes in the article, but Gideon Levy is quoted in the article, peeling back the thin layer of artful evasion and calls it for what it is: Persecuting lying Arabs for lying to Jews and continuing to entrench a Palestinian underclass within Israel, with a justice system designed specifically to protect Jews from Arabs. For someone who thinks people who lie for sex need to go to prison, he seems awfully comfortable hiding the true rationale behind his judgment. But then again, I doubt any Jews are going to believe that this is really about lies and not about kicking a Palestinian every chance you get. And we all know lies are only crimes when you lie to a Jew.
I can’t wait to see all the lawsuits from women who slept with guys who claimed to be business owners but are really just unemployed. Or guys who tell girls that they are soooo funny and interesting.
UPDATE: See my follow-up to this post. The follow-up includes facts! And research!
… and the cow goes moo
Breaking News! Joe Johnson is NOT Retarded!
July 4, 2010
What an awesome NBA free agency season we’re having so far. In total, the players signed have gone for ~200% of their value.
And overpaid athletes now have a new king! Move over, Rashard Lewis!
Joe Johnson signs with Atlanta for One Hundred BILLION Dollars!
When the best (arguably… J-Smoove is pretty unique) player on a team that barely gets over a very crummy Bucks team that was missing one of their two best players — and the other player is a rookie — and then absolutely quits in the second round of the playoffs, losing every game by 20+ points, you HAVE to pay max money to keep him.
What’s amazing is that I’ve been hearing rumours of essentially the accepted contract offer since July 1. What took you so fucking long, Joe? Your house so big it takes you 3 days to find a pen?
Darko Milicic and Drew Gooden, do you see what you two have started?? Can the league survive without a lockout and new collective bargaining agreement to protect teams from themselves when GMs are this stupid?
… and the cow goes moo
