[–] newoldwave ago
The first thing a lender looks at is a person's character and social contacts say a lot about that. I think it's legit.
[–] Feeling_my_goats 0 points 4 points 4 points (+4|-0) ago
Headlines are important to stories. How about this: "Facebook patents technology that using borrower's acquaintances helps to improve risk calculation. Low risk borrowers expected to save millions in lower interest rates."
[–] [deleted] 0 points 2 points 2 points (+2|-0) ago (edited ago)
[–] Snagglerock 2 points 0 points 2 points (+2|-2) ago
Of course we all know everything about our 500 friends and acquaintances.
[–] schwanstucker 0 points 1 point 1 point (+1|-0) ago (edited ago)
Two issues with this.
The CFPB will be all over this. So will the mortgage brokers. So will the attorneys. It could also lead to redlining and various other forms of discrimination, which are all illegal. Plus, credit scores, like Social Security Numbers, are protected data in the sense that use of other people's scores is questionable at best, because the "other people" are not buying or refinancing their properties. The lenders who use this will be very sorry they did so. Talk about a can of worms.
If you search for and find someone and their social network on FB; and invade the privacy of the people in his / her social network by so doing, FB is going to find itself liable for that behavior. Any efforts to use FB as a contact point for lending, especially mortgage lending, will soon lead to multiple lawsuits, in which all the deep pockets will be uncovered and hopefully emptied.
[–] schwanstucker ago
Problem is that (I think) it runs afoul of multiple consumer protections. The laws that relate to that are really all the rage right now...
[–] polygontranslucent ago
I don't buy it, banks make money lending money ............ they're not going to deny loans based on social media connections.