Skip to comments.BofA settles unfair lending claims for $335 million
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 ...
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.
Lets not forget Shirley Sherrod and how she got rich off Pigford.