NAACP says bank giants steered blacks to bad loans

[Americanhero1]

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.

Wells Fargo & Co. is receiving federal bailout funds. Messages left after hours with the banks were not immediately returned.

Amara Weaver of Milwaukee bought her first home in 1984, receiving a 6.25 percent fixed-rate mortgage. She says she had a steady job as a human resources director for a social services agency, never missed a mortgage payment and maintained excellent credit.

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."

Similar NAACP lawsuits are pending against a dozen other subprime lenders.

"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."

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.

The NAACP is seeking reforms from the banks such as increased transparency in the loan process, educational outreach and internal training.

http://news.yahoo.com/s/ap/20090313/ap_on_re_us/naacp_mortgage_discrimination

[arksis]

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."

Didn't have any CHOICE but to sign AFTER reading the fine print and finding the interest rate was 11%?!!!!!!!!!! Is she FOR REAL??!!!!!!!!
Any SANE person would NOT have signed this!

[briann]

These are the same people who back in the early 2000's were convinced that banks WERENT lending to blacks. and they pressured the banking system to increase their total number of loans to people with low incomes and people in 'urban' areas.

[arksis]

No thanks to Barney Frank et al! Idiots!

[Sentinel For Truth]

These are the same people who back in the early 2000's were convinced that banks WERENT lending to blacks. and they pressured the banking system to increase their total number of loans to people with low incomes and people in 'urban' areas.

Affirmative action and leftists obsessed with giving everything to the blacks caused the entire credit crisis the world faces today.

Subprime loans to blacks were actually the monetary equivalent of reparations.  There ya go.

[New Yorker]

When I first read the title of this thread I read it as..

"NAACP says black giants steered blacks to bad loans" 

I was like WHAT!!?? 

[Daleksfearme]

When I first read the title of this thread I read it as..

"NAACP says black giants steered blacks to bad loans" 

I was like WHAT!!?? 

Most Basketball players are Black Giants.

It is amazing how no blame at all is being put on any of the people who got the loans for letting their grasp exceed their reach. While there is no question that the bankers are evil and greedy, people did have the right to refuse the terms and search for a better deal.

And where were all the Black activist leaders that scream if a drug dealer gets a bump on the head during his arrest. Why did they not see this coming. I think that they lost sight of the ball in many ways.