Posted on 11/26/2007 7:02:06 PM PST by Graybeard58
The Rev. Jesse Jackson Sr. today demanded City Council hearings and a Dec.10 march on La Salle Street to shine the light on a mortgage foreclosure epidemic he warned could trigger a "sustained depression" as early as next year.
Jackson accused "unscrupulous lenders" of targeting minorities for high-cost loans in a "form of redlining and racial profiling." He pointed to a study by the National Community Reinvestment Coalition that shows African-Americans of all income levels in the Chicago area were more than twice as likely as whites to receive the subprime and ballooning adjustable interest rate mortgages that can be a prelude to foreclosure.
The City Council has no power to bring about the solution that Jackson is seeking: a freeze on both adjustable rate mortgages and home foreclosures and restructuring in favor of repossession. But City Council hearings can apply political pressure.
"Rats run in holes when lights come on. The City Council can expose the lenders," Jackson said.
He added, "People who have been trapped are suffering in the dark alone..People are humiliated. It's almost like a kind of economic rape..They bought a home.They went from renting to home ownership.Now, they've got to face being evicted. It is a terrible emotional state. Don't suffer in the dark feeling private guilt. It's time for collective action for a new economic policy - a kind of bailout through restructuring, as opposed to repossession."
With 30,000 Chicago homes in foreclosure and 85,000 more threatened by late payments, Jackson warned that "the biggest economic crisis" to hit the United States since the Depression threatens city services, even with Mayor Daley's $276.5 million tax wallop.
"When you lose this many homes, you lose tax base..You have to begin to lay off firemen and teachers. And the cost of public transportation will go up.Taxes up. Services down," Jackson said.
Joining Jackson at today's City Hall news conference were Aldermen Robert Fioretti (2nd) and Ed Smith (28th), whose wards have been hard hit by home foreclosures. Also in attendance was 87-year-old Tellie Howard, one of six homeowners on his West Side block facing foreclosure.
"They come by and said they could re-mortgage the house for me because I was running behind with my payments. [They said] they could do it and I could keep my house," Howard said.
"But, by me not being able to see - and couldn't read too good either - I signed papers to sell him the house and I got nothing out of the house..Finally, a lady came by and told me that she owned the property..From there, I got an eviction notice that I should be out of the house in 30 days."
Howard was allowed to keep his home in the 4200 block of West Wilcox after intervention from Jackson and the South Austin Community Coalition.
Looks like the shakedown express is gaining steam.
Uh, Mr. Jackson, what were the lenders supposed to do, turn down minority applicants with horrible credit? That would be racist, right?
If they hadn't, you'd be bitching that they were unfairly restricting the ability of minorities to own homes.
What about the Dumas borrowers
Gee, where was Jesse when these loans were being let? Probably berating lenders (e.g., white men) for not giving enough loans to minorities in “the community”. Now the chickens are coming home to roost and its time to blame the white man again for making the po’ folks take their dirty money.
Risk is independent of income. What is missing from this story, like so many others on this topic, is the credit scores of the African Americans in the study. They represent much higher risks, therefore they are offered credit on much different terms than lower credit risks. I dare say that if you took a random sample of whites and a random sample of blacks, stratified by income level - the blacks would have significantly lower credit scores at all income strata. It's the most significant fact regarding this subject, but don't look for it in the article and don't hold your breath for Jesse Jackson to acknowledge it.
“He pointed to a study by the National Community Reinvestment Coalition that shows African-Americans of all income levels in the Chicago area were more than twice as likely as whites to receive the subprime and ballooning adjustable interest rate mortgages that can be a prelude to foreclosure.”
I fail to see how this demonstrates anything other than financial ignorance. Glaringly absent from this article is an explanation of why these houses are in foreclosure for non-payment. My mortgage gets paid FIRST every month. Then again, I did buy a house I could afford.
Now Jesse will say that the right thing to do will be to forgive all those racist loans. In fact, make the lenders forgive the loans AND pay reparations for pain and suffering. Plus a healthy contribution to Jesse’s war chest. Or there might be violence.
“A few years ago he was complaining that these lenders wouldn’t lend money to his constituents. Now, it seems, the problem is that they did lend money, but that they want to be repaid.”
People need to be reminded of this fact..
“I dare say that if you took a random sample of whites and a random sample of blacks, stratified by income level - the blacks would have significantly lower credit scores at all income strata.”
My best friend sold cars in MS for years. The credit score gap you speak of is QUITE significant. I remember him speaking of several people who had the nerve to attempt to buy cars on credit reports with 6 pages of bad debt.
The “Rats” who made these loans in these preferred districts (New Ghettos) at the request of congress probably wont make that mistake again... The gubmint strikes again.
“Eighty-seven-year-old Tellie Howard simply wanted to refinance his West Side home. Instead, he was scammed into a deal that now has him facing foreclosure on the home he’s owned since 1961.”
http://cbs2chicago.com/local/foreclosure.jesse.jackson.2.596032.html
How many times did Tellie “simply” refinance over 46 years?
If they were DENIED the loans, they would have been screaming about "discrimination".
Loans don't contain an IQ test for applicants, and THAT would be considered "discriminating against minorities", too.
It's no-win in todays "diversity" society.
Ding, ding, ding... we have a winnah.
It’s racism I tell you. Give em’ that loan you racist pig! How dare you give em’ that loan you racist pig! (Quite disgusting but it’s damn near useless to beat that sense into the “victims” of America) Jackson is all to aware.
Oh, now THERE’S a giant of credibility!!!!/sarcasm
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