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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."
[–]schwanstucker0 points
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(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.
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[–] didntsayeeeee 0 points 7 points 7 points (+7|-0) ago
Seems too easily gamed to be useful.
Still, it's common enough when patenting something to defensively patent everything you can think of that's adjacent to it.
This is just standard-issue media outragebait.
[–] 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."
[–] Bing11 0 points 2 points 2 points (+2|-0) ago
Yay! Someone who understands risk calculations!
[–] [deleted] 0 points 2 points 2 points (+2|-0) ago (edited ago)
[–] merton ago
So what if they did it based on the color of skin? Religion? Sex? Sexual orientation?
If it is backed by statistic, is it fair to use?
[–] [deleted] 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.
[–] noep ago
I'd love to believe that but corporations and the ultra rich rarely seem to be held to the same standards as the rest of us.
[–] 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.
[–] 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.
[–] JTMTL ago
Mark, we trusted you. Don't you have enough money already? Why help money lenders get richer.