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View Full Version : NAACP sues mortgage Lenders.


KeiselPower99
03-14-2009, 12:36 AM
CNN) -- The NAACP filed lawsuits Friday against two of the nation's largest mortgage lenders -- HSBC and Wells Fargo -- alleging "systematic, institutionalized racism" in their subprime lending.


"We have targeted these banks because we have gone through what we can get our hands on, and it seems like there's a real problem here," NAACP CEO Benjamin Jealous told CNN.

Jealous said the group wants "transparency." "We want to see the books," he added. "We are not seeking damages; we just want them to fix the problem."

Both companies denied the allegations.

HSBC spokeswoman Kate Durham said the company does not comment on litigation, but she said, "We stand by our lending practices."

In a statement, Wells Fargo spokeswoman Melissa Murray said, "The NAACP's allegations are totally unfounded and reckless. We have never tolerated, and will never tolerate, discrimination in any way, shape or form in any of our business practices, products or services."

She added that the company has been "working with the NAACP for the past two years to develop a partnership that would benefit the NAACP, its constituents and our communities, so we are dismayed that the NAACP has chosen to abandon that constructive dialogue in order to pursue this litigation."


Under subprime lending, people who don't qualify for lower interest rates can borrow money at higher rates. The NAACP argues that the companies gave subprime rates to African-Americans who qualified for better rates and gave better rates to white customers with similar credit histories.

The lawsuits note studies showing African-Americans have been disproportionately affected by subprime lending. But that's not solely because of intentional efforts to target African-Americans, according to the lawsuits.

"These statistical disparities are not mere happenstance, but instead result from the systematic and predatory targeting of African-Americans, as well as facially neutral lending policies and practices that have a disparate adverse impact on African-Americans," said the lawsuits, which were filed in U.S. District Court for the Central District of California.

The NAACP has launched similar suits against numerous other lenders. In its statement Friday, the nation's oldest civil rights group said, "One lender has already entered into a preliminary settlement agreement with the NAACP, and a number of other lenders are engaged in similar discussions."


This has me really ticked off. Just because some people went out and got home loans they cant afford and the bank let them do it the banks are now racist??? This is the biggest load of horse$hit I have read in years.

revefsreleets
03-14-2009, 10:13 AM
Conversely, if these companies would have denied these people credit due to their poor economic viability, the NAACP would STILL be suing them for discrimination.

Damned if they do, damned if they don't.

xfl2001fan
03-14-2009, 10:29 AM
The NAACP just comes across as the largest group of racist hate-mongers in America IMHO.

Race will always be an issue so long as we have these touchy advocate groups "leading" the way.

klick81
03-14-2009, 10:48 AM
the companies gave subprime rates to African-Americans who qualified for better rates and gave better rates to white customers with similar credit histories.



If this is indeed true, there is an issue at stake. If the NAACP has their facts straight, someone needs to get their balls hung.

xfl2001fan
03-14-2009, 11:04 AM
The NAACP argues that the companies gave subprime rates to African-Americans who qualified for better rates and gave better rates to white customers with similar credit histories
If this is indeed true, there is an issue at stake. If the NAACP has their facts straight, someone needs to get their balls hung.

If the NAACP can ask for transparency, then so can the mortgage lenders. If I'm the mortgage lender, and I know I've done the right thing, then I'll ask (first) for the NAACP to show me the information they received. "Everything we could get our hands on" is not a justifiable excuse for a lawsuit.

Show me the steps you went through to "build your case" and prove that no more could be done before you come jumping down my throat with your racist behavior.

GBMelBlount
03-14-2009, 11:26 AM
The lawsuits note studies showing African-Americans have been disproportionately affected by subprime lending.


Having had a mortgage company for almost 10 years and personally originating loans for hundreds of people, many of which were funded through Wells Fargo & HSBC, I can say personally that I think this is a load of crap.

It sounds to me , like they are saying the problem is for example, that while 1 out of 10 non-blacks that qualified for loans received sub-prime rates, that perhaps 2 out of 10 blacks who received loans got sub prime rates

So while their allegations may be technically true, we may find that the reason that a higher percentage of blacks received sub prime loans is simply based on the fact that a higher percentage of blacks did not legitimately qualify for prime rates.

The other possibility, as crazy as it sounds, is that blacks who should not have received a loan, were approved for sub prime loans ONLY because they were black where as non-blacks received no loan at all. So in this second scenario, the lenders could actually be sued for giving more high rate loans to black people who would not have gotten a loan at all if they were not black! Again, this is pure speculation but I wouldn't put anything past these race-baiting poverty pimps.

I think it is funny that Clinton & many dems like Barney Fwank pressured lenders to make higher risk loans to people who otherwise might not qualify and now the lenders are getting sued for doing what they were pressured to do. What a country.

X-Terminator
03-14-2009, 03:57 PM
:shake02:

Dino 6 Rings
03-14-2009, 05:11 PM
Conversely, if these companies would have denied these people credit due to their poor economic viability, the NAACP would STILL be suing them for discrimination.

Damned if they do, damned if they don't.

Seriously...how much more insane can it get..."we'll sue if we don't get a loan" client

"but you aren't qualified because you have bad credit" bank

"Give me a loan or we'll sue you for discrimination" client

"Ok, here's the loan, sign here, these are the rules" bank

"Thanks....wait I can't pay this" client

"then we foreclose" bank

"That's not fair! I'll sue you for targetting me" client

"WTF is the matter with this country!" Bank!

Steeldude
03-15-2009, 01:46 PM
The NAACP just comes across as the largest group of racist hate-mongers in America IMHO.

Race will always be an issue so long as we have these touchy advocate groups "leading" the way.

yep.

i knew, when i saw NAACP is the title of the thread, it was going to be about them crying racist this and racist that...

hindes204
03-15-2009, 01:55 PM
Well said Dino, well said!

stlrtruck
03-16-2009, 08:34 AM
All I can say is Wow, I'm surprised it didn't come sooner!

Godfather
03-16-2009, 01:51 PM
Having had a mortgage company for almost 10 years and personally originating loans for hundreds of people, many of which were funded through Wells Fargo & HSBC, I can say personally that I think this is a load of crap.

It sounds to me , like they are saying the problem is for example, that while 1 out of 10 non-blacks that qualified for loans received sub-prime rates, that perhaps 2 out of 10 blacks who received loans got sub prime rates

So while their allegations may be technically true, we may find that the reason that a higher percentage of blacks received sub prime loans is simply based on the fact that a higher percentage of blacks did not legitimately qualify for prime rates.

The other possibility, as crazy as it sounds, is that blacks who should not have received a loan, were approved for sub prime loans ONLY because they were black where as non-blacks received no loan at all. So in this second scenario, the lenders could actually be sued for giving more high rate loans to black people who would not have gotten a loan at all if they were not black! Again, this is pure speculation but I wouldn't put anything past these race-baiting poverty pimps.


One other possibility--while you might not engage in such behavior, there are crooks in every line of work. Maybe crooked loan originators pushed worse loan terms on people they thought were easy marks, and on average black borrowers were more liley to be seen as easy prey or were less sophisticated and thereby less likely to call BS when they got a bad deal. (Kind of like car salesmen...I had a coworker once whose roommate was paying $460/mo for a crummy non-luxury car because the salesman knew he had a sucker.)

That scenario would be the most problematic for lenders because even though race wasn't a motivating factor, it would look racist and they wouldn't be able to say the real reason.