Posted on 03/14/2009 2:18:40 PM PDT by NormsRevenge
SAN FRANCISCO - -- The NAACP filed lawsuits Friday against two banks, alleging they discriminated against African Americans by using racist practices in mortgage lending.
The class actions against Wells Fargo, based in San Francisco, and Illinois-based HSBC claim that black home owners were more than 30 percent likely to be issued a higher interest rate than white borrowers with the same qualifications. They say the banks used institutionalized, systematic racism against African Americans.
"These banks have a pattern of charging black people more, even though they have good credit, good assets and good incomes," NAACP President and CEO Benjamin Jealous said. "The higher interest can make the difference between being able to hold onto a home or lose it."
In a written statement, Wells Fargo spokesman Chris Hammond said the allegations are "totally unfounded and reckless" and that the bank never tolerated and will never tolerate discrimination.
"We are proud of our lengthy record leading the industry in responsible lending practices and in support of the communities we serve, which makes the very thought of a discrimination claim reprehensible to us," wrote Hammond. "We intend to vigorously defend these unfounded allegations."
The lawsuit cites several studies that document discrimination, including a 2006 report by the Center for Responsible Lending that found black people were 31 to 34 percent more likely to receive higher-rate subprime loans. The suit claims the banks violated the Fair Housing Act, the Equal Credit Opportunity Act and the Civil Rights Act.
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Jealous said subprime mortgages, intended for people with poor credit, were given to African Americans who qualified for better loans 54 percent of the time compared to 23 percent for white people.
(Excerpt) Read more at sfgate.com ...
of the two banks targeted, not sure about HSBC but I think Wells Fargo is one of the banks that didn’t want bail-out money.
Jealous said subprime mortgages, intended for people with poor credit, were given to African Americans who qualified for better loans 54 percent of the time compared to 23 percent for white people.
Sounds like reverse discrimination to me.
Isn’t this attitude of shilling money to poor minorities in the name of political correctness what got us into the recession to begin with? How do we even know this is true that they charge blacks more interest than whites? Hear say evidence doesn’t cut it for me.
Benjamin Jealous.......perfect.
You’re right......perfect name. heheheh
I've said it before: The Lunch Counter sit-ins in the 1950's went the wrong way. A business should have ever right to refuse to do business with someone, for any reason at all. It's a stupid, stupid business practice -- but so what?? Let economics punish them.
The concept of suing a business because your skin color played a role in a private business agreement -- an agreement which is supposed to be between two mutually consenting adults -- is abhorrent to me.
This BS is going to destroy this country. The banks need to give the NAACP the middle finger - put up or shut up.
I guess they discriminated based on the african-american sounding names, right? As long as these race baiting organizations keep these tactics up, they will forever be holding down the very peoples they claim to advocate for.
If all things turn out to be equal, I support the suit.
But it will all depend on the plaintiffs to prove that. What percent was the down payment, were the buyers self employed, how long have they worked for their employer, what was the purchase price, etc.
There’s allot more to getting a good rate than, income and credit score.
We need to get over these people that charge racism. It’s not about racism.
Let the NAACP have all the bad mortage loans forced upon the banks in the name of racial fairness. Let them pay the taxpayers back for them.
There’s allot more to getting a good rate than, income and credit score.
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That too is true. The last few years, I have gathered stuff I have never had to submit before, major paino.
Do I begrudge the bank?
No.
So if you refuse to give loans to unqualified blacks, it is racist. If you do give loans to unqualified blacks but charge a premium for the risk, it is racist. Typical heads I win, tails you lose libtard thinking. C’mon people, when is enough too much?
This is exactly what caused a portion of the so-called credit crisis. Racist organizations like the NAACP and ACORN threatened banks with the racist tag if they didn’t do business with them the way the wanted , forcing them into giving out large numbers of bad loans.
The perpetually outraged are again outraged. The whiners are whining. The white man has shown once gain they are the bain of existance to “people of color”.
If the white man would just get his foot off of my throat I could be somebody.
Same sh** different day. What else we got?
You said it! I hope Wells Fargo doesn’t settle out of court. Hall their whinny arses into court and let people see how petty and stoopid they are. I’m sure this organization is a shell of it’s former self.
This is Julian Bond's gang.
when we’re broke.
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