NAACP: Banks steered blacks to bad loans

[rfranklin]

Banks steered blacks to bad loans, NAACP says
Class-action lawsuits target subprime lenders Wells Fargo, HSBC

updated 1:20 p.m. ET, Fri., March. 13, 2009
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.

-more-

http://www.msnbc.msn.com/id/29678907/

[tblue]

1. Probably to Hispanics, too. I know one family whose payments went from $800 to $1700.

It's sick. I'm glad the NAACP is suing.

[Number23]

2. Same shit, different year

"Blacks still were disproportionately steered into subprime loans when their credit scores, income and down payment were equal to those of white homebuyers."

Sad but this doesn't even really qualify as news. And yet, there will still be the usual barrage of "it's not race, it's class!" cries from the clueless.

[bbinacan]

3. Bullshit

until I see data to confirm.

[Rage for Order]

6. It is easy to throw statistics around...

...when one isn't providing the mathematical models used to arrive at those statistics. I too would like to see their methodology. I've worked in the mortgage industry for a number of years, at both regional and national companies, and have never seen a single instance of a borrower being steered into a particular loan product because of their race.

[DCKit]

4. Redlining 5.0

Quell suprise.

Now, let's talk about liar loans and no-doc loans. The statute of limitations isn't up on all that BS.

[tangent90]

5. What was the motive?

??