Skip to comments.Morgan Stanley sued for subprime discrimination on blacks.
Posted on 10/15/2012 2:15:58 PM PDT by ExxonPatrolUs
The American Civil Liberties Union Monday filed a class action lawsuit against investment bank Morgan Stanley alleging racial discrimination in subprime mortgage practices. The class-action lawsuit, submitted in a federal court a stones throw from the New York Stock Exchange, alleges that Morgan Stanley [via now-bankrupt financial agent, New Century Mortgage Company] intentionally steered blacks in the Detroit metropolitan region into subprime loans. Blacks who were credit-worthy and qualified for traditional mortgages were caught up in Morgan Stanleys biased dragnet. Of the 9 million foreclosures since 2007, four out of 10 have been against people of color. Both Bank of America and Wells Fargo have settled discrimination lawsuits over steering black and Latino borrowers into subprime loans.
Anotherwords, the Ameriquest business model. Tell a 770 they’re a 520 and charge them 12%.
Why couldn’t they shop around for a better rate?
Return of the Pigfords!
Good old American Communist Litigation Union again.
What does “anotherwords” mean?
What the ACLPuke seems to forget is that the Feds leaned on these companies and forced them to give subprime loans to people who did not qualify.
I’m a little confused. Exactly where on the application form is the line for “race of applicant”?
Whatever I meant by it when I typed it. I report, you decipher.
When they would not give loans to people that didn't qualify it was redlining. When they are forced to give loans to people who did not qualify it is predatory.
Fannie Mae Form 1003, Uniform Residential Loan Application, SECTION X: Information for government monitoring purposes.
Take a look:
It’s called Social Justice, and it is a way that “Either way, Whitey pays.”
If you don’t lend, you are bad and need to be fined.
If you do lend, you shouldn’t have ever made that loan.
Heads I win, tails you lose.
Banks got sued by the fed if they didn’t give blacks loans they could not repay and now blacks want to sue them for giving them the loans. I think the banks ought to just name the persons in the fed that contacted them in the first place as participants in the lawsuit.
Damned if they didn’t and damned that they did.
. . . and if a realtor helped minority families move into white neighborhoods, it was "blockbusting."
Nothing in this article makes sense or rings true.
If you pay the mortgage you don’t get foreclosed on. If you don’t, you don’t get to blame the lender for loaning you money.
Or were poor people forced to take loans out and I missed out?
“What does anotherwords mean?”
It’s an old soap opera.
Because, since 1965, Blacks are officially "victims" incapable of making their own decisions on anything, and therefore never responsible for the results. They are a ball and chain for America that will never be cut loose and only get heavier with each passing year.
What ever happened to "Liberia"? Wouldn't that have been better for all concerned?
I'd forgotten about that, and in any case, it is not required, the first option is:
BORROWER ____I do not wish to furnish this information
And when the agents told people "the neighborhood's changing, better move now before values go down" it was called "panic peddling".
I worked in the Mortgage industry in the late 1990s. I vividly remember several lawsuits in Ohio, all originating in Cleveland, that were filed by this organization that at the time I had never heard of before. The name of this heretofore unheard of organization was ACORN. They were alleging that banks and lenders were discriminating against low income borrowers and credit challenged borrowers.
I remember a couple of things that changed after the lawsuits. One, lenders could no longer turn down a loan from someone who recieved unemployment compensation, child support as their primary income, or welfare. Two, many private lenders stopped originating loans in Cuyahoga County.
Oh, and lead counsel for two of these lawsuits representing ACORN, none other than one Barrack Hussein Obama. So, he sued the lenders to make them give out these loans as a lawyer for ACORN, and now as President he is suing them again for complying and actually lending the money. And he is getting away with it. Only in America.
Well, well, the threat of lawsuits created the behavior that preceded the 2008 crash AND NOW companies are being sued for said behavior that will again create another crash.
Liberal logic: if you don’t loan to blacks, you’re being discriminatory in your loan practices. We will punish you if you don’t loan to blacks by harrassing you with regulators. Then, when you do loan to blacks, many of whom we all know cannot repay their loans, we’re going to sue you into oblivion. And one more thing, we are so enthusiastic about this that we’ll back up those bad loans with taxpayer money. Does that about sum it up?
They liked the rates and deal until they lost money like everyone else.
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