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Morgan Stanley sued for subprime discrimination on blacks.
Salon.com ^ | Oct 15, 2012 | NATASHA LENNARD

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 Stanley’s 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.


TOPICS: Chit/Chat
KEYWORDS: discrimination; subprime

1 posted on 10/15/2012 2:16:05 PM PDT by ExxonPatrolUs
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To: ExxonPatrolUs

Anotherwords, the Ameriquest business model. Tell a 770 they’re a 520 and charge them 12%.


2 posted on 10/15/2012 2:18:22 PM PDT by 2ndDivisionVet (You cannot invade the mainland United States. There would be a rifle behind every blade of grass.)
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To: ExxonPatrolUs

Why couldn’t they shop around for a better rate?


3 posted on 10/15/2012 2:20:08 PM PDT by oblomov
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To: ExxonPatrolUs

Return of the Pigfords!


4 posted on 10/15/2012 2:20:36 PM PDT by rawcatslyentist ("Behold, I am against you, O arrogant one," Jeremiah 50:31)
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To: ExxonPatrolUs

Good old American Communist Litigation Union again.


5 posted on 10/15/2012 2:20:43 PM PDT by Olog-hai
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To: 2ndDivisionVet

What does “anotherwords” mean?


6 posted on 10/15/2012 2:21:06 PM PDT by Xenalyte (Settle down, Beavis.)
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To: ExxonPatrolUs

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.


7 posted on 10/15/2012 2:22:20 PM PDT by Jean2
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To: ExxonPatrolUs

I’m a little confused. Exactly where on the application form is the line for “race of applicant”?


8 posted on 10/15/2012 2:23:27 PM PDT by JimRed (Excise the cancer before it kills us; feed &water the Tree of Liberty! TERM LIMITS, NOW & FOREVER!)
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To: Xenalyte

Whatever I meant by it when I typed it. I report, you decipher.


9 posted on 10/15/2012 2:24:11 PM PDT by 2ndDivisionVet (You cannot invade the mainland United States. There would be a rifle behind every blade of grass.)
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To: Jean2
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.

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.

10 posted on 10/15/2012 2:24:52 PM PDT by School of Rational Thought (Fun for women ages 21 through 35)
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To: JimRed

Fannie Mae Form 1003, Uniform Residential Loan Application, SECTION X: Information for government monitoring purposes.

Take a look:

https://www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/1003rev.pdf


11 posted on 10/15/2012 2:28:58 PM PDT by 2ndDivisionVet (You cannot invade the mainland United States. There would be a rifle behind every blade of grass.)
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To: School of Rational Thought
It's a no-win deal. Just redistributing the wealth through required racial information on the loan request.
12 posted on 10/15/2012 2:32:25 PM PDT by BipolarBob (G Orwell was an optimist it seems.)
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To: School of Rational Thought

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.


13 posted on 10/15/2012 2:39:02 PM PDT by wac3rd (Somewhere in Hell, Ted Kennedy snickers....)
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To: ExxonPatrolUs

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.


14 posted on 10/15/2012 2:44:09 PM PDT by CodeToad (Padme: "So this is how liberty dies... with thunderous applause.")
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To: ExxonPatrolUs

Damned if they didn’t and damned that they did.


15 posted on 10/15/2012 2:45:07 PM PDT by Rebelbase (The most transparent administration ever is clear as mud.)
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To: School of Rational Thought
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. . .

. . . and if a realtor helped minority families move into white neighborhoods, it was "blockbusting."

16 posted on 10/15/2012 2:58:38 PM PDT by Jacquerie (Exterminate rats.)
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To: ExxonPatrolUs

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?


17 posted on 10/15/2012 3:02:55 PM PDT by Usagi_yo
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To: Xenalyte

“What does “anotherwords” mean?”

It’s an old soap opera.


18 posted on 10/15/2012 3:05:54 PM PDT by AndrewB (FUBO)
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To: oblomov
Why couldn’t they shop around for a better rate?

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?

19 posted on 10/15/2012 3:22:16 PM PDT by montag813
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To: 2ndDivisionVet
Fannie Mae Form 1003, Uniform Residential Loan Application, SECTION X

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

20 posted on 10/15/2012 3:33:14 PM PDT by JimRed (Excise the cancer before it kills us; feed &water the Tree of Liberty! TERM LIMITS, NOW & FOREVER!)
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To: Jacquerie
... if a realtor helped minority families move into white neighborhoods, it was "blockbusting."

And when the agents told people "the neighborhood's changing, better move now before values go down" it was called "panic peddling".

21 posted on 10/15/2012 3:36:48 PM PDT by JimRed (Excise the cancer before it kills us; feed &water the Tree of Liberty! TERM LIMITS, NOW & FOREVER!)
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To: CodeToad

I worked in the Mortgage industry in the late 1990’s. 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.


22 posted on 10/15/2012 3:40:25 PM PDT by BizBroker (Democrats know nothing. If they knew that they knew nothing, that would be something. But they don't)
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To: ExxonPatrolUs

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.


23 posted on 10/15/2012 3:42:32 PM PDT by struggle (http://killthegovernment.wordpress.com/)
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To: ExxonPatrolUs

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?


24 posted on 10/15/2012 4:27:59 PM PDT by suthener
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To: ExxonPatrolUs

They liked the rates and deal until they lost money like everyone else.


25 posted on 10/15/2012 4:29:41 PM PDT by A CA Guy ( God Bless America, God bless and keep safe our fighting men and women.)
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