Fair Isaac: Fair Or Unfair?

Fair Isaac: Fair Or Unfair? By Bill Roberts

The Fair Isaac company rates everybody's credit.

They do it for the banks and mortgage companies.

It is called your FICO score. FICO stands for Fair Isaac COrporation.

Because of the turmoil in our economy many people are seeing their credit scores plummet.

Is that fair?

The banks can't manage their own affairs. A lot of them are BANKRUPT. Many more are in big trouble. They aren't credit worthy yet they have gotten over a TRILLION DOLLARS of credit from us. The U.S. Government (that's us) has bailed them out.

It is time for them (the banks) to ease up on credit requirements to get things going again.

Who are they to demand better credit from us in order to borrow money than they themselves have? Their credit stinks.

Such Arrogance

It is time that we demand Fair Isaac to shut down FICO.

If we are going to "forgive and forget" that the banks are not credit worthy, then they should do the same for us.

Our economy needs credit in order to function. We need to be able to buy cars, refrigerators, and houses. We need credit. We all need credit, not just those with 700 credit scores.

Those arrogant bastards will only lend to you if your credit is unblemished even though they themselves don't have unblemished credit.

America needs fairness in credit. We don't nee (or want) Fair Isaac.

Our credit mess wasn't caused by people buying houses without a good credit score.

Our credit mess is the result of our financial institutions behaving very badly and not taking into account what would happen if real estate prices fell.

Well, real estate prices did fall, and as they fell the housing speculators (the flippers) couldn't maintain their investments. They needed prices to go up in order for them to get back their purchase price, their holding costs, their transactions costs, and everything else that they paid.

When prices went down they couldn't get their money back. They bailed out of the market. Prices went down some more.

People who had bought on the upswing found themselves UPSIDE DOWN. They owed more than their house was worth.

As their adjustable rate mortgages (ARMs) reset or recast they found themselves unable (or unwilling) to make their payments. So they bailed out of their houses too.

Foreclosures were rampant. Prices were in FREE FALL.

Everybody has been affected by this situation.

See my posts:

Are Foreclosures Good For America? Part 4

Are Foreclosures Good For America? Part 3

Are Foreclosures Good For America? Part 2

Are Foreclosures Good For America?

Now it is the time to turn this around.

Easy Credit

What we need is EASY CREDIT, not tight credit.

If we can lend a TRILLION DOLLARS to the unworthy bankers without checking their credit, then they can lend to us without checking our credit.

Fair Is Fair

And to be fair we need to do away with FICO scores.

Fair Isaac is UNFAIR. They are paid by the lenders to rate our credit. These same lenders who can't keep their own credit good are asking us to have exemplary credit in order to borrow some of this money that we lent them IN SPITE of their credit.

Think about it, Is This Fair?

Our economy really needs to turn around. The manufacturing sector needs to go back to work. People need to buy cars, appliances, and other things. They need credit. They need EASY CREDIT.

The housing market needs to be stabilized. People need to be able to buy a house. They need mortgages. They need EASY MORTGAGES.

Wipe the Slate Clean

Let's start over. If the jobs come back then people can pay their mortgages. Give them a chance. Don't judge them by what has happened over the last three years.

Let's Look Ahead

Wouldn't it make more sense to let them buy a house without qualifying than it does to BULLDOZE that house because it has been foreclosed and there is nobody to sell it to? Talk about stupidity.

Everybody deserves a second chance. We gave the bankers a second chance. Now we need them to give us a second chance.

No more FICO scores. EASY CREDIT for everybody. Let's get America moving!