NAACP: Racist Big Banks Loaned Money To Poor Blacks For Housing

March 13th, 2009 (20) Posted By Pat Dollard.

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NAACP says bank giants steered blacks to bad 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.
(AP)

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  • Steve in NC

    If they lay an 11% loan on the table, you get up and leave. Simple.

    That rate they jammed you with has nothing to do with skin color unless you are stating since you are a mud person you are too stupid to succeed in our society?

    You can’t get a phone book and find another lender to work with cause you too stupid to read since you spent all your time bent over in the field for massa picking his cotton and never learned to read?

    Why not stand up for yourself as a human being and not classify yourself as a victim simply based on your race?
    ….
    Knowing what I know now I should have picked my own damn cotton.

  • American Woman

    Oh brother, here we go again. The victim card :roll:

    Billy boy Clinton is who “forced” the banks to do this! But no one “forced” them to sign on the dotted line!!
    Give me a fucking break!! Im sure Obongo will bail out the blacks! besides welfare,foodstamps,medicaid….etc…

  • Billie

    “The NAACP is accusing Wells Fargo and HSBC of forcing blacks into subprime mortgages while whites with identical qualifications got lower rates.”

    Didn’t know mortgage forms have a space for identifying one’s ethnic background.

    • Paslode

      I highly doubt anyone was wearing sheets or held a gun and forced them to sign on the dotted line.

      Those folks saw an oppourtunity to get a house and they took a chance.

  • Syndromeofadown

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  • http://images.epilogue.net/users/michelb/Empire-Crusader.jpg Kurt(the infidel)

    the NAACP just loves to pour gas on the fire dont they? im sick of all these groups who supposedly fight racism but are themselves the most racist of all.

  • Marc

    BULLSHIT! BULLSHIT! BULLSHIT!

    CREDIT IS NOT A CIVIL RIGHT IT IS A PRIVILEGE! THE AMERICAN DREAM OF HOME OWNERSHIP IS SOMETHING TO ASPIRE TO, BUT IT IS NOT AN INHERENT RIGHT. YOU ARE GUARANTEED BY THE CONSTITUTION THE RIGHT ‘TO THE PURSUIT OF HAPPINESS’ WHICH MEANS GET OFF YOUR ASS WORK, SCRIMP, SAVE, & EARN IT!!!!!

    This non-argument of being victimized by “predatory lenders” is hollow. Granted if a bank sets up a branch in a community they have an ethical obligation to do business with those people within their community, but not throw BUSINESS COMMON SENSE OUT OF THE WINDOW.

    There have been some cases where a small percentage of these mortgage defaulters were deceived, however the vast majority of those currently in default were in homes with no verification of earnings in a property they could never afford. Everyone in this mess shares some of all of the blame.

    NAACP is an irrelevant organization throwing a political molotov cocktail to grab a headline and drum up donations.

    • American Woman

      Marc,
      after the election of Obongo they really have to scratch and scream because without the cry of racism the blacks dont have a leg to stand on. The blacks are the ones who keeps racism alive otherwise they would have to get a job,they thrive on white guilt.
      Why do you think Holder is out saying ‘whites are so mean, they dont want to hang out with us on the weekends?’
      Look at Maxine Waters, her husband is on the board of a black bank which gave these loans and have been repremanded to improve there dealings BUT also received a bailout!

  • Nanny

    This does not wash – there are as many stupid white people who signed on the dotted line as black people. And here we are all working our asses off and making our payments just so the federal govt. can give our hard earned money to someone who thinks they deserve a mortgage for a house they cannot afford. BULLSHIT!!

    Just got done watching Glenn Beck’s special. We all need to sign on to his 912 project and let our voices be heard! Along with the tea party’s! Revolution will wake up our tone deaf politicians along with our vote – get rid of them all!!!

    • Paslode

      Torches, tar and feathers are beginning to sound much better than chin boogie :???:

  • jake

    “i didnt have any choice but to sign”
    Well sista then why did you fuckin sign you idiot. Has nothing to do wiff yoos being black, it has everything to do with you bieng a goddam dip shit. What else will the NAACP come up with. This group makes me sick.

  • JI

    I know a lot of banks give millions to these community action groups.
    Did any one else hear HSBC is pulling out of the USA?
    Supposedly announced this morning.

  • JI

    We have given black people EVERYTHING they wanted and STILL they are not happy.
    I see a backlash coming.

  • jasjfarrell

    Laurence Lindsey came out early in the Bush Administration stating that more blacks were being rejected for mortgages than whites. He concluded that the statistics alone showed a pattern of discrimination.

    Now people with bad credit, sketchy income, questionable assets who were able to get a mortgage and buy a home that are now claiming discrimination when they can’t pay.

    Change we can believe in.

  • Sully

    They’re VERY happy that their *BUSINESS* of creating and milking white guilt is paying so well.
    Hell, it even got one of their own elected POtuS.

  • 31Mike

    STFU!!!!!!!!!!!!!!!!!!!!! :gun:

  • Mike

    It looks as if that United negro college fund thing is not really helping out much, and im with 31Mike.

  • Randy

    With ACORN in the limelight, the NAACP is trying to remain relevant. Plain and simple.

    Everything in this lawsuit is buillshit. If this lady was “forced” to sign the loan agreement, then file criminal charges. If she was offered to sign the loan knowing that rate was 11% and she did, then she is guilty of stupidity.

    I wonder if the NAACP will release this lady’s credit score.

    Bashing banks and destroying the financial system is all part of the master plan set forth with our current administration.

  • prestonbrooks

    “I wants a loan, bankerman.”
    “OK, Rastus, the government says we gotta start loaning out more $$ to minorities. I’m afraid your job as a ‘community organizer’ is dependent on grants. We’ll have to charge you a higher rate, but you get the loan.”

    3 yrs later:

    “Dat bankerman screwed me. I wants debt release. Crackers is racist.”

    Obamamansuperhero: “free money for all from Whitey!”