More NAACP BS

[Gator]

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.

Both Wells Fargo & Co. and HSBC are 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.

I love how the one lady said she was "forced" to sign. I guess the loan officer held a gun to her head.

[wtnhunt]

Tighe estimated that "tens of thousands" of blacks had been forced into bad loans

This would be exactly where this person is wrong. No lender ever forces anyone to sign on the line without reading and understanding the terms, sure they can be pushy. The borrowers should have paid better attention, plain and simple. If the banks engaged in a practice that gave preferential rates to people based on color, that may well be grounds for an investigation but not by the naacp, which is quite clearly a biased organization imo. Anyone has the right in this country to walk away from a bank where the terms are not what they like regardless of the color of their skin.

Kind of think the old saying "excuses are like" ........ um noses(lol), "everyone has one" applies here.

[Dawg]

What more do you expect from the NAACP?

[stevebeilgard]

What more do you expect from the NAACP?

that's the point! the naacp is paid, by us the taxpayers, do do what they do. what their job is, is to destroy the nation. we also just funded 450 MILLION to acorn. you know, that group that stopped folks from voting. and a bunch more.