Friday, March 13, 2009

Forcing blacks into subprime mortgages

AP reported The NAACP is accusing Wells Fargo and HSBC of forcing blacks into subprime mortgages while whites with identical qualifications got lower rates.
Do you have proof of that. The only example cited is a person buying a second home for her child.
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.
Are you hoping a black President will force the banks to just give the houses to the people too stupid to realize what they were signing?
Black homebuyers have been 3 1/2 times more likely to receive a subprime loan than white borrowers,
Because the white borrowers read the terms before signing.
and six times more likely to get a subprime rate when refinancing, Tighe said.
Because the subprime conditions seem better until you see what will happen with adjustable rates and balloon payments.
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.
Everything exactly the same???
Melissa Murray, vice president of corporate communications for Wells Fargo & Co., called the lawsuit "totally unfounded and reckless." The bank is receiving federal bailout funds.
What does that have to do with it. Oh, i see, it may give the government leverage for force the bank to make concessions that are not good business. No wonder the banks are wanting to return the money to prevent you from controlling them.
"We have never tolerated, and will never tolerate, discrimination in any way, shape or form in any of our business practices, products, or services," Murray said.... 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).
You had plenty of choice. You could have refused to sign. That is the pirpose of a closing, to allow you to read the terms and make sure everyone knows what is expected of them.
... It made me feel violated."
And so now you speak up, because the government has given bailout money to the bank, and you think you can get them to force the bank to give you terms it would not give you when you bought the house for your kid.

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