Skip to comments.NAACP says bank giants steered blacks to bad loans
Posted on 03/13/2009 6:08:44 AM PDT by kddid
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 will 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. . . . 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. . .
(Excerpt) Read more at biz.yahoo.com ...
1. Create the current housing fiasco
2. Give taxpayer money to banks.
3. Minority groups sue the banks and get the taxpayers money.
The man did it- AGAIN! /s
Do they have video of people being led into banks at gunpoint?
How about this: “stupidity is a capital offense”.
It’s a foolproof plan: Sue the banks for not giving loans, and if the banks give in, you can sue them for actually giving the loans that they didn’t want to give in the first place!
I didn't know Barney Fwanks was black.
“”Tighe estimated that “tens of thousands” of blacks had been forced into bad loans””
Forced? You mean they put a gun to their head?
Yea and the CIA brought Crack into the cities to hook the Blacks. Somebody raise the BS Flag.
Is the NAACP saying blacks are stupid?
I don’t believe this for a minute. The only color banks see is green.
Another example of Coulter’s thesis in “Guilty”.
Those who are perpetrating the harm declare themselves to be victims.
Just tell us that we’re responsible when someone who KNOWS they can’t afford a 200k - 500k house on a welfare check or even on a 30k income gets a loan they KNOW they can’t pay back. Or better yet, LIES about their income and assets in order to get a loan they know they can’t pay back.
Just tell us that and call us racists when we call you on it.
SICK OF IT.
Here’s another example of the way the left views “power”.
We believe that when someone exerts “power” over another individual, it involves coercion and REDUCED choices.
The left believes that someone is exerting “power” over another person when MORE options are provided, “steering” the person to a more attractive option than they had before.
THIS is how banks “FORCED” people to take these loans.
It was the free fried chicken, bbq chips, and grape soda they handed out that lured them to sign. Damn racist banks! They only conned blacks and no one else. Next up for the NAALCP is to wage war against Bernie Madoff for conning black jews.
Will blacks ever lose their slave mentality and become self accountable?
If I was black, this type of action by this antiquated 'association' would be embarrassing.................
What a load of crap. It was ACORN's thugs and Democrat "incentives" that FORCED banks to issue loans to unqualified minorities with little or no proof of income.
Won't it be nice when all this Democrat collusion comes out in court? Who want's to bet this case will be swept under the rug before it gets that far?
He didn't con the black jews.
He forced them to 'invest' with him..........
OH for CRAP sake! Boo hoo...
Darned if you do, darned if you don't.
I can definitely believe Wells Fargo did this. I personally had them ask me to do some patently illegal things to qualify for a loan.
yeah Frank and Dodd had absolutely nothing to do with it..
(tell me the NCAAP didn’t get a phone call)
You got it! ACORN'S "community organizing" in action.
“...bank giants steered blacks to bad loans
I didn’t know Barney Fwanks was black. “
Barney may have to use his... Maxine Waters card.
I am so blankety-blank tired of hearing this excuse I want to scream! No one, nobody, no way, no how forced these people to accept the loans. Unless someone physically grasped their fingers, put a pen in them and forced it across the signature line they got themselves into a mortgage agreement on their own.
The NAACP makes black folks sound like they are children and must be led around by the hand with someone else to make all the life decisions for them.
Bank You must loan to blacks to buy homes they don't qualify.
Customer what payment can you afford?
The only way to get to that payment is a sub-prime loan
Fine lets do it.
How about going back to the right way 1. Credit history
2. Down Payment of at 15 %. Proof of income.
Oh but they couldn't get a house.
***but said it was difficult to gauge the scope of the problem because banks keep much of their internal data private.***
Sounds like still another witch hunt.
And the woman who discovered at closing that her interest rate was to be 11 percent should have had an attorney to present the closing statement to her BEFORE closing, and if she did, she should be suing her attorney, not the bank.
#4. War if #3 happens
Where's that flashing BS meter? This clown does not have access to the financial records. Also, there is no way to tell who is 'white' vs 'black'.
That information is NOT recorded on loan documents.
The NAACP needs to find someone who really cares about their inability to read the paper before you sign your name!
I think America should sue the NAACP for improper use of Taxpayer money.
NAACP...WELL THEM TOO...*GRINS*
You are spot on, I can’t ever remember being forced to buy something the seller knew I couldn’t pay for. Also, I have never bought into anything I KNEW I couldn’t pay for. Sometimes I knew I’d have to tighten the belt to pay for it
Blacks still were disproportionately steered into subprime loans when their credit scores, income and down payment were equal to those of white homebuyers
I demand PROOF of this assertion. It makes no sense.
If it’s my money I’m lending, I’m going to make sure the person is capable and probable of paying me back.
However, if someone ELSE tells me that they’ll buy this loan from me with no risk to me, well, I’ll take my commission and let them have it.
Or, if I’m under coercion that my business will be shut down, I might just have to make it a business expense to make a bad loan hear and there. I’ll end up charging the good customers more to make up for it though.
It’s too bad that the majority of Americans have been so INTENTIONALLY DUMBED DOWN that they can’t make these logical analyses of the assertions.
Are these idiots trying to say that these "victims" didn't even show up in person and talk to a loan officer? They received a loan via the mail?
How are federal bailout loans being spent... Paying for the loans these "victims" defaulted on?
This is one idiotic law suit. But what do you expect from the NAACP, who's black lawyers were automatically "graduated" from law school, and the "passing the bar" test consisted of walking past the bar without going in.
A study done at Howard University reveals that the net worth of black families, on average, is only a fraction of that of white families (16% as of 1998.) So, while credit scores, income, and down payment might be equal, the net worth of the applicant might be very different. The net assets of a borrower effectively act as collateral for the bank. People with more collateral are going to get a lower interest rate. That's Economics 101, Week 1.
without a lawsuit, how does the NCAA know “ The NAACP is accusing Wells Fargo and HSBC of forcing blacks into subprime mortgages while whites with identical qualifications got lower rates.” Income, Credit history and job history , down payment and price of home they were buying or is this a drive by statement
Exactly. The useful idiots, community agitators, cunning co-conspirators, pusillanimous propagandists lap this stuff up.
It is an outright lie.
Would any business take a loss in order to satisfy its “racist” tendencies?
The white people trusted us. RACISTS!
And if the banks had denied loans these groups would have cried racism. The loans are given and they cry racism. They wake up in the morning and they cry racism. Their whole purpose in life is to wail about racism where there is none.
I can't wait till they sue the Democrat party for "forcing" blacks to depend on the government to do everything for them.
They may settle out of court for a large donation to ACORN and NAACP. What do you bet?
That’s having your cake and eating it too, isn’t it?
“I’m too stupid to be responsible, but smart enough to demand my rights...”
“Don’t expect me to contribute, but give me my share”
Banks don’t make bad loans. Idiots who sign the agreement without understanding it and then don’t pay them back do.