Posted on 03/13/2009 6:08:44 AM PDT by kddid
The NAACP is accusing Wells Fargo and HSBC of forcing blacks into subprime mortgages while whites with identical qualifications got lower rates.
Class-action lawsuits will be filed against the banks Friday in federal court in Los Angeles, Austin Tighe, co-lead counsel for the National Association for the Advancement of Colored People, told The Associated Press.
Black homebuyers have been 3 1/2 times more likely to receive a subprime loan than white borrowers, and six times more likely to get a subprime rate when refinancing, Tighe said. Blacks still were disproportionately steered into subprime loans when their credit scores, income and down payment were equal to those of white homebuyers, he said. . . . Tighe estimated that "tens of thousands" of blacks had been forced into bad loans, but said it was difficult to gauge the scope of the problem because banks keep much of their internal data private. The lawsuits could force banks to divulge closely guarded information, such as how banks can determine the race of a loan applicant and how federal bailout funds are being spent. . .
(Excerpt) Read more at biz.yahoo.com ...
Slavery has nothing to do with it. Follow the money.
somehow, all this is going to matter in the law suit and be considered relevant.
she never mentioned she had an attorney present. I’m guessing she didn't.
Human nature is to take the easiest path,
in the case of the people in question, that path is through victimhood.
When it stops working, they’ll find another path. All other paths beside “productive citizenship” should be made harder.
I wonder if ACORN is going to use their stimulus money to picket these banks again, it worked out so well the last time.
There is a Federal requirement on loan documents to state Sex, Marital Status, and Race. This was implemented to fulfill CRA rules....”
I stand corrected. It figures that the feds would want to keep tally on this, since they are so race conscious.
Having said that, this ‘lawyer’ would not have access to the loan documents. Or am I wrong on that too?
I loss any sympathy for the leftist black community after the nationwide reaction to the first cop trial in the Rodney King affair.
I was in Charlotte SC when the cops were cleared. A crazy black woman tried to stab me. I have nothing for the people, nothing.
Really? Who made them do that? What entity is big enough and powerful enough to convince banks, huge banks, to loan money to people who could not pay it back? Mmmmmm. An evil superhero? The KKK? No, just the modern incarnate of evil on this world, government.
Perhaps NAACP should contact Obama and ask him the details how he made it possible for blacks to be victimized back in the 90’s.
Black homebuyers have been 3 1/2 times more likely to receive a subprime loan than white borrowers, and six times more likely to get a subprime rate when refinancing, Tighe said.
Blacks still were disproportionately steered into subprime loans when their credit scores, income and down payment were equal to those of white homebuyers, he said. . .
The NAACP is going to sue the banks because whites paid higher interest rates?
Yep, sounds like DESCRIMINATION to me!
Oh wait, this is an AP story. Accuracy rating 30% or less.
>>>In 2004, she wanted to buy the house next door for her son to live in. She said the bank promised her a low fixed rate for a $40,000 loan, but at the closing, when reading the fine print, she noticed that the rate was actually 11 percent.
“I was blown away,” said Weaver, an NAACP member. “I didn’t have any choice (but to sign). ... It made me feel violated.”<<<
Yes, you did have a choice. You could have refused to sign. Did you read the paper work beforehand? Did you have copies of the applications where you supposedly locked in a low rate? Was the interest rate really in the “fine print”?
From what I recall from my two mortgage closings, the APR is in BOLD PRINT. I believe Federal law requires this.
“This is systematic, institutionalized racism,” Tighe said. “Once you take out factors relative to income and credit risk, the only difference between the borrowers is the color of their skin.”
But in the stats that supposedly “prove” blacks were “steered to subprime loans”, “factors relative to income and credit risk” have not been taken into account.
Unfortunately, on average blacks earn less money and even adjusted for income, have lower credit ratings. This is not the fault of the banks.
Also, there is an experience and dillegence factor involved.
Even a person with good income and credit qualifications might end up with a high interest rate loan, if they don’t do their homework.
The bank wants to charge EVERYONE as much as they can get away with and the borrower obviously wants to pay as little as possible.
I also have to wonder how many well qualified minorities ended up with sub-prime loans because, out a desire to give business to other minorities, trusted some disreputable minority lender or broker, who took advantage of them.
It would be interesting to find out what percentage of minorities stuck with “predatory loans” were sold those loans by minority “predators”. My guess is the percentage is very high.
I spoke a couple of times with someone who writes mortgages (for "lower-income" people?) for Wells Fargo. I wonder what this person thinks now of all this.
This has become one seriously sick society!!
“Black homebuyers have been 3 1/2 times more likely to receive a subprime loan”
Blacks are over 3 1/2 times more likely to not have a job.
It doesn't sound to me that this ever got this far ...any excuse to claim victim-hood on their part is more like it.
Your experience in Charlotte (almost getting stabbed)reminds me of my son who got beat up at Ohio State by a group of minorities as he was walking down the street. He has nothing to do with them either.
The NAACP has more worries than the subprime issue.. how about addressing the black single moms, black abortion rates, black prison population, black AIDs numbers, black school dropout rates, black literacy rates, black crime rates, etc...etc... Now we’re suppose to believe that somehow they didn’t f*ck up the black homeownership rates? Give me a break!
What they don’t tell you is the loan officer who took advantage of a black was more than likely black. I’ve seen it time and time again.
A few years back ABC did a news story on blacks screwing over blacks. In car sales the black sales person typically charged the black buyer a few hundred dollars more per car than the same sales person charge a white buyer. But white sales people were even across the board regardless of color.
I'll never forget this one black lady who's business I was after. It was a small loan, a consolidation of a first mortgage currently at 7.5% and a second mortgage at 11%. I was trying to put her first and second together at 7% which was a good deal for her. Curiously, she took a deal from a black guy at 9%.
He convinced her that I was lying to her and that because her frist was 7.5 and her second was 11 that she had a 18.5 blended rate and that refinancing it to 9% was a great savings for her. Remember, I was offering her 7%.
It was a 70k dollar loan or so, and when she told me the aforegoing explanation I was so shocked I couldn't respond. I told her that she would no doubt be happy with the loan and I wished her good luck.
True story. He FORCED her into a bad loan. Bad bank!
Wow, that’s EVIL. And perpetrated on her by “one of her people”.
I guess it just goes to show you that ignorance is expensive.
Please read these two 2008 newspaper stories from my old hometown:
http://blog.cleveland.com/metro/2008/01/the_foreclosure_crisis_dream_h.html
http://blog.cleveland.com/metro/2008/01/the_foreclosure_crisis_he_didn.html
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