Posted on 12/21/2011 2:22:50 PM PST by alex2011
Attorney General Eric Holder said a federal probe found discrimination against at least 200,000 qualified African American and Latino borrowers from 2004 to 2008, during the height of the housing market boom. He said that minority borrowers who qualified for prime loans were steered into higher-interest-rate subprime loans.
(Excerpt) Read more at money.cnn.com ...
From the article: “”He said that minority borrowers who qualified for prime loans were steered into higher-interest-rate subprime loans.””
The qualification was that they WERE minority - it stopped right there. If they were qualified, they wouldn’t have gotten the subprime loans.
The article goes on to state that the customers turned down for loans or those who took out subprime loans would receive compensation from the settlement when more details were known - didn’t copy and paste the exact words... They didn’t have details when the suit took place?
People in government sure do things differently than the rest of us. What’s wrong with us? Are we really all people from different planets with different thinking processes?
You all want a REAL Eye Opener???
http://capitalresearch.org/wp-content/uploads/2008/10/toeachtheirhome.pdf
This is what the Re-working of the Community Reinvestment Act of 1977 in 1992 led to. The 1992 CRA led DIRECTLY to the ACORN brochure you see at this link.
You REALLY want some hurl material? Then READ the brochure! Here ACORN is bragging about using the CRA to force banks like B of A to write sub-prime loans to people using food stamps and welfare checks as income.
You read that right. THIS is the kind of crap that Eric Holder is bragging about RIGHT NOW, forcing B of A to once again write toxic mortgages.
How flippin brilliant is this?
Eric Holder is a RACIST for forcing banks to write loans to people who can’t afford them, he is BEGGARING the black community who is the target of this! What does Holder have against black people anyway??
Yes: WE have noticed.
But there isn’t a helluva lot we can do about it.
Remember. We is in charge now? Holder & Obama, what a pair of grifters.
Well How many black farmers who never had a farm did we pay off in the last great Racial rip off called Pigford ?
[borrowers who qualified for prime loans were steered into higher-interest-rate subprime loans.]
Stupid is as Stupid is Steered?
Countrywide and Fannie Mae are partners in crime. DOJ goes after all of Fannie Mmae’s dance partners but not Fannie Mae itself. They got huge bonuses but are unable to actually do any loan mods. It’s just a big scam to leave Fannie Mae out of the picture. Sham press conference today.
Countrywide and Fannie Mae are partners in crime. DOJ goes after all of Fannie Mmae’s dance partners but not Fannie Mae itself. They got huge bonuses but are unable to actually do any loan mods. It’s just a big scam to leave Fannie Mae out of the picture. Sham press conference today.
Gee, seems to me that white people are just as underwater as other shades of human beings. UNDERWATER is color blind. We finally achieved MLK’s dream.
BofA and other lending institutions were damned if they did, and damned if they didn’t. It really didn’t matter. One way or the other, they were going to be the bad guy.
Why we fall for the federal government line on this is beyond me.
Note the clue here. Blacks and Latinos! Another-words, not one single White was treated unfairly.
BofA IS wealth. It can afford to hand out over $300 million. No problem.
And the rest of the citizens have to deal with institutions that are less and less stable, because of our federal government.
Think this won’t force other institutions to give out bad loans? Think they won’t get blamed in time, if they do or they don’t?
We’re in the land of Oz folks.
What gets me is how could Countrywide even discreminate because last time I checked, they has minorities working there who would have blown the whistle?
LOL, Al Capone had nothing on this corrupt piece of sh!+ Eric Holder!
Doncha understand? We’re supposed to be MORE UNDERWATER!
You are sadly mistaken. They clearly hit them for a fine because they credit qualified for prime loans. The same thing happened at Wells Fargo Financial but they were not accused because of race and the fine was much less, being that far less borrowers were affected.
The part I can’t figure out is that with many large companies they keep the race data away from the credit data. So how did the underwriters know their race unless they purposely gave them the data, or underwriters came in direct contact with the borrowers(and yes I do realize that some names can give away the race of the person). But even if they looked at borrowers by name only, it would be pretty stupid of a corporation to allow underwriters to steer people to higher costing loans when identified by name as a minority.
Again another untrue fact. Fannie and Freddie reduced loan requirements in order to let a bigger amount of “qualified” borrowers into the pool. If you had said that you would of been correct. However, you incorrectly attribute loans made by companies WAMU and Golden West Financial to this issue. Those companies made loans that they kept under their own belts that were far worse quality than the one’s sold to Fannie and Freddie. Pick a pay mortgages was not invented by the government. Negative amortized loans were not invented by the government.
Everyone in the system is at fault, from the banks who made bad loans, to the governement that expanded the pool of borrowers, to the borrowers themselves that took advantaged of stated income loans, everyone was involved in the shell game of the housing bubble that caused people to buy in so they could double their money in 5 years, or multiple their money increase by sometimes a pratically infinite amount of times by putting no money down and then trying to flip their homes.
If they didn’t like the terms they could go get a loan somewhere else.
“This forced lending to people who have bad credit is what got us into the current financial crisis.”
You’re right; they sued the banks to make loans to unqualified people, then sued them because they made loans to unqualified people. I think they were attempting to head off the housing glut that was the natural result of lower birth rates and the outsourcing of our economy to Asia. Even with our low birth rate, supplemented by illegal aliens, there was no way people could buy homes as they had before when they were reduced to Wal-Mart greeter salary levels.
Many of the “For Sale” signs you see today would have been up five years earlier of they hadn’t pulled this scam, which landed us in the same place but with fewer job prospects, a worse credit rating, and inflation.
Your summary hits the nail on the head. Our government forces private companies to do its bidding, even when it doesn’t make economic sense, then extorts more money out of them when things go wrong. Its the type of thing that happens in Russia or some bananna republic. Not a good sign for our future.
What kind of "due diligence" can you get if the same gov't that regulates you, would investigate you, would charge you, tells you to buy a company to stop a financial meltdown in progress?
It still amazes me so few have gone to prison or faced civil penalty.
“”Well How many black farmers who never had a farm did we pay off in the last great Racial rip off called Pigford ?””
Certainly more than ever existed in the first place. Funny how that just never got the proper review and publicity, isn’t it? What a shakedown! It’s all disgusting.
I think it was John Stossel who covered it and anyone who ever potted a plant was called a farmer.
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