T1B

NAACP says bank giants steered blacks to bad cheap loans

http://news.yahoo.com/s/ap/20090313/ap_ ... rimination


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 were to 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.

Melissa Murray, vice president of corporate communications for Wells Fargo & Co., called the lawsuit "totally unfounded and reckless." The bank is receiving federal bailout funds.

Papa Willie wrote:All they have to do is to pull the credit files. The truth is a scary bitch sometimes.

No Shite!


How does the NAACP and scum lawyers get away with this shite over and over and over again????

There is a way to stop this.

If a jury determines a lawsuit to be frivilous then have the counsel that brought the case pay all court fees and costs for both sides. They are just trying to win the lottery and there is little recourse if they miss.

C'mon now team. We all know the current housing market mess - which is cascading through the entire financial sector and economy is solely based on PREDATORY LENDING PRACTICES of greedy Wall Street tycoons and Conservative politicians.

That's what my cousin's college professor says and that dude is educated. It's non educated to suggest anything else.

One just has to point the finger at who is truly, ultimately responsible.
Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. Lenders who refused would find themselves castigated publicly as racists. No fewer than four federal bank regulators scrutinized financial firms’ books to make sure they were in compliance.

Failure to comply meant your bank might not be allowed to expand lending, add new branches or merge with other companies. Banks were given a so-called “CRA rating” that graded how diverse their lending portfolio was…


In the name of diversity Dictated by Congress' REGULATIONS, banks began making huge numbers of loans that they previously would not have. They opened branches in poor areas to lift their CRA ratings.

Meanwhile, Congress gave Fannie and Freddie the go-ahead to finance it all by buying loans from banks, then repackaging and securitizing them for resale on the open market.