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post #1 of 34 (permalink) Old 03-13-2009, 09:34 AM Thread Starter
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NAACP says bank giants steered blacks to bad loans

http://biz.yahoo.com/ap/090313/naacp...imination.html

NAACP says bank giants steered blacks to bad loans
Friday March 13, 9:21 am ET
By Jesse Washington, AP National Writer
NAACP accuses Wells Fargo and HSBC of steering well-qualified blacks into subprime loans


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 were to 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.

Wells Fargo & Co. is receiving federal bailout funds. Messages left after hours with the banks were not immediately returned.

Amara Weaver of Milwaukee bought her first home in 1984, receiving a 6.25 percent fixed-rate mortgage. She says she had a steady job as a human resources director for a social services agency, never missed a mortgage payment and maintained excellent credit.

In 2004, she wanted to buy the house next door for her son to live in. She said the bank promised her a low fixed rate for a $40,000 loan, but at the closing, when reading the fine print, she noticed that the rate was actually 11 percent.

"I was blown away," said Weaver, an NAACP member. "I didn't have any choice (but to sign). ... It made me feel violated."

Similar NAACP lawsuits are pending against a dozen other subprime lenders.

"This is systematic, institutionalized racism," Tighe said. "Once you take out factors relative to income and credit risk, the only difference between the borrowers is the color of their skin."

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.

The NAACP is seeking reforms from the banks such as increased transparency in the loan process, educational outreach and internal training.
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post #2 of 34 (permalink) Old 03-13-2009, 09:35 AM
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forced into bad loans...

LOL

Sign your FUCKING name right there on that line, RIGHT NOW!
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post #3 of 34 (permalink) Old 03-13-2009, 09:37 AM
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In 2004, she wanted to buy the house next door for her son to live in. She said the bank promised her a low fixed rate for a $40,000 loan, but at the closing, when reading the fine print, she noticed that the rate was actually 11 percent.

"I was blown away," said Weaver, an NAACP member. "I didn't have any choice (but to sign). ... It made me feel violated."
Yeah, I'd also agree to purchase a car over the phone and then show up to sign the documents and still buy it even though it didn't have any doors or wheels.

Fucking idiots.
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post #4 of 34 (permalink) Old 03-13-2009, 09:46 AM
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post #5 of 34 (permalink) Old 03-13-2009, 09:51 AM
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Amara Weaver of Milwaukee bought her first home in 1984, receiving a 6.25 percent fixed-rate mortgage. She says she had a steady job as a human resources director for a social services agency, never missed a mortgage payment and maintained excellent credit.

In 2004, she wanted to buy the house next door for her son to live in. She said the bank promised her a low fixed rate for a $40,000 loan, but at the closing, when reading the fine print, she noticed that the rate was actually 11 percent.

"I was blown away," said Weaver, an NAACP member. "I didn't have any choice (but to sign). ... It made me feel violated."
"Hey everyone, I'm stupid and now I want to sue someone because of it."

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post #6 of 34 (permalink) Old 03-13-2009, 10:03 AM
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"Hey everyone, I'm black and now I want to sue someone because of it."

Fixed for you.

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post #7 of 34 (permalink) Old 03-13-2009, 10:08 AM
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I can go on and on...
I wish they would divulge her credit score, if she verified income, the LTV, the fact it's a small loan and that it's also an investment loan (not owner occupied).
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post #8 of 34 (permalink) Old 03-13-2009, 10:13 AM
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post #9 of 34 (permalink) Old 03-13-2009, 10:23 AM
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I can go on and on...
I wish they would divulge her credit score, if she verified income, the LTV, the fact it's a small loan and that it's also an investment loan (not owner occupied).

Whats the difference for an investor loan? 3% or so?
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post #10 of 34 (permalink) Old 03-13-2009, 10:31 AM
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Whats the difference for an investor loan? 3% or so?
Right now I'm seeing an average of 1% increase over primary/vacation home pricing.

Quote someone at 5.25% 30 year fixed on their primary... switch it to investment and the same pricing/cost comes out in the low 6s to high 5s.
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post #11 of 34 (permalink) Old 03-13-2009, 10:32 AM
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And if they denied them , the banks are fucking racist .
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post #12 of 34 (permalink) Old 03-13-2009, 10:52 AM
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This is a no win situation. Many of them probably couldn't qualify for a "white" loan (racism!) and were offered loans that they could qualify for (taken advantage of!).

Of course, suggesting that they take ownership of their problem (be financially responsible, know what they are signing) is out of the question, but in the real world the rest of us have to do it.
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post #13 of 34 (permalink) Old 03-13-2009, 10:55 AM
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And if they denied them , the banks are fucking racist .
Like I said above...... Call me a racist, I really don't give a fuck anymore.

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post #14 of 34 (permalink) Old 03-13-2009, 11:26 AM
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"This is systematic, institutionalized racism," Tighe said.
Say it, don't spray it, you racist fuck.

Quote:
The NAACP is seeking reforms from the banks such as increased transparency in the loan process, educational outreach and internal training.
If the applicants were more transparent in their incomes, they wouldn't be in the clusterfuck they're in, now.

Educational Outreach: Pay your bills, you stupid motherfuckers. If you can't afford the shit, don't buy the shit.

Internal Training? NAACP and blacks have more "inside" tips and tricks than any other race in the country already!!!

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post #15 of 34 (permalink) Old 03-13-2009, 11:50 AM
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This thread topic is just another in a long line that just confirms what I have known was going to happen in our country. I am just sick to my stomach.

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post #16 of 34 (permalink) Old 03-13-2009, 12:04 PM
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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.

Ok one more comment.

This also doesn't take into consideration that it's ultimately the CUSTOMER that opts for loan programs. Subprime loans were much more enticing due to lower payment options and lower interest rate options at that time.

Higher payment prime loan or lower payment sub prime loan. People were greedy and went for the lowest payment on the biggest they could afford, plain and simple. "You mean I can make same payment on a $200K loan that I can for a $400K loan?" Sure can, it's negative amortization.

I get into arguments with our customers at work who say they were forced into loans. Wish I could upload the recorded calls.
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post #17 of 34 (permalink) Old 03-13-2009, 12:10 PM
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fuck the naacp.

they keep the black/white thing going.want to blame racsism on someone?theres your culpret.

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post #18 of 34 (permalink) Old 03-13-2009, 12:38 PM
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fuck the naacp.

they keep the black/white thing going.want to blame racsism on someone?theres your culpret.
[email protected] Against All Caucasian People.

its always racism, these people will probably be awarded some crazy settlement for being irresponsible.

its still "we the people"right?

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post #19 of 34 (permalink) Old 03-13-2009, 01:28 PM
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Ok one more comment.

This also doesn't take into consideration that it's ultimately the CUSTOMER that opts for loan programs. Subprime loans were much more enticing due to lower payment options and lower interest rate options at that time.

Higher payment prime loan or lower payment sub prime loan. People were greedy and went for the lowest payment on the biggest they could afford, plain and simple. "You mean I can make same payment on a $200K loan that I can for a $400K loan?" Sure can, it's negative amortization.

I get into arguments with our customers at work who say they were forced into loans. Wish I could upload the recorded calls.
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post #20 of 34 (permalink) Old 03-13-2009, 01:47 PM
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post #21 of 34 (permalink) Old 03-13-2009, 03:06 PM
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We got a black president... effing get rid of the NAACP it is no longer needed.
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post #22 of 34 (permalink) Old 03-13-2009, 03:08 PM Thread Starter
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"Hey everyone, I'm Black and now I want to sue someone because of it."
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Fixed for you.

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post #23 of 34 (permalink) Old 03-13-2009, 03:20 PM
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post #24 of 34 (permalink) Old 03-13-2009, 04:25 PM
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[email protected] Against All Caucasian People.
I like this one better
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post #25 of 34 (permalink) Old 03-13-2009, 05:23 PM
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post #26 of 34 (permalink) Old 03-13-2009, 07:56 PM
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Lets see if I have this right.

They have their ignorant ass special interest group sue the government saying they were "disproportionately steered into subprime loans", loans they could not afford to begin with.

They could not afford them to begin with, Screw the NAACP.
I was really thinking that since Obama is in the Whitehouse that this retarded crap would slow down or stop. My Bad....

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post #27 of 34 (permalink) Old 03-13-2009, 09:57 PM
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its always racsism, these people will probably be awarded some crazy settlement for being irresponsible.
With banking "bailout" funds. It's like a shell game I tell ya.

And hey pendejo, what about my needs too

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post #28 of 34 (permalink) Old 03-14-2009, 10:58 PM
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they always have to have something to cry about.

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post #29 of 34 (permalink) Old 03-14-2009, 11:18 PM
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I saw some of this bullshit on HLN in the breakroom today, and I was struck that the President and CEO of the NAACP is a half-black/half-white guy with the last name, "Jealous." Oh sweet, gentle irony, you never disappoint me!

Give me a dollar.
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post #30 of 34 (permalink) Old 03-15-2009, 09:25 AM
 
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they always have to have something to cry about.

And love to call people out on double standards and reverse racism.
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post #31 of 34 (permalink) Old 03-15-2009, 09:42 AM
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Racism? ........dumb N.......R


On the other hand she did get a great rate, i remember in the 80's when my father bought a house at 19% interest Variable.......... he was White Retired military and made decent money..........he had a issue with a previous VA home loan, but still, he took what he could get and refinainced later when his credit was better.

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post #32 of 34 (permalink) Old 03-15-2009, 11:04 AM
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so what about all the whites, asians and hispanics who signed those loans?, was that racism too?

its still "we the people"right?

"So this is how democracy dies, with thunderous applause"

"a lesson lived is a lesson learned, everyday is a lesson."

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post #33 of 34 (permalink) Old 03-15-2009, 01:48 PM
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I mean legally and keep my job
You know, that thought crossed my mind a few hrs. after posting that.





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post #34 of 34 (permalink) Old 03-16-2009, 04:52 PM
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As its been said before in this thread:
  • Incomes of applicants...where?
  • Credit scores of applicants...where?
  • Forced...how?

Biased article and racist NAACP.

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