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ooooh. so banks FORCED people into bad loans...


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yea....MMMMkay/

sign that paper or I will kill a puppy!

NAACP says bank giants steered blacks to bad loans

By JESSE WASHINGTON, AP National Writer Jesse Washington, Ap National Writer – Thu Mar 12, 11:25 pm ET

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.

Didn't have a choice but to sign? WTF?

I aint gonna deny racism may go on in the lending practices, but NO one can force ANYone to sign on to a loan. If you read the terms and don't like them , don't sign.

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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."

Really? Who was her loan officer, Vito Corleone?

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I saw this news just this morning.

OMG. The NAACP needs to stop. Nobody twisted their arms to sign those loan contracts.

And as I said in an older thread, it is stuff like this that allows the banks to act like this. Don't like the terms..don't sign. After losing so many loans and the interest eventually the banks will have to act smarter.

Well..would have been forced to act smarter in the past, now they can just get a bail out. So it has come to no one having to take personal responsibility.

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And as I said in an older thread, it is stuff like this that allows the banks to act like this. Don't like the terms..don't sign. After losing so many loans and the interest eventually the banks will have to act smarter.

Well..would have been forced to act smarter in the past, now they can just get a bail out. So it has come to no one having to take personal responsibility.

You have to be strong enough to walk away from a deal. If a bank or car dealer senses that you aren't, then they have you by the balls.

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I saw this news just this morning.

OMG. The NAACP needs to stop. Nobody twisted their arms to sign those loan contracts.

But why? They are doing such great work in advancing their people. They had a funeral for the "N-Word" a couple of years ago. <_<

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And as I said in an older thread, it is stuff like this that allows the banks to act like this. Don't like the terms..don't sign. After losing so many loans and the interest eventually the banks will have to act smarter.

Well..would have been forced to act smarter in the past, now they can just get a bail out. So it has come to no one having to take personal responsibility.

My god don't say that. A person with actual Individual values and not a sheep following a party?

Respect points for PP!! (not that anyone cares :lol: )

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I saw this news just this morning.

OMG. The NAACP needs to stop. Nobody twisted their arms to sign those loan contracts.

Not only that...They are suing the Banks that are already in trouble and causing a lot of the economic turmoil.

I know lets sue them and just make things worse. Good thinking!

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yea....MMMMkay/

sign that paper or I will kill a puppy!

NAACP says bank giants steered blacks to bad loans

By JESSE WASHINGTON, AP National Writer Jesse Washington, Ap National Writer – Thu Mar 12, 11:25 pm ET

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.

Didn't have a choice but to sign? WTF?

I aint gonna deny racism may go on in the lending practices, but NO one can force ANYone to sign on to a loan. If you read the terms and don't like them , don't sign.

Unfortunately people buy into the victim mentality. Instant gratification has played a big role in the financial problems facing most people.

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Unfortunately people buy into the victim mentality. Instant gratification has played a big role in the financial problems facing most people.

As a collective we've let that happen in this country, we're raising a generation right now full of spoiled, self-centered victims right now.. it has got to change. It can be seen in schools, in kids sports league (let's not keep score so nobody gets their feelings hurt) and in general day to day life, it's everyone at fault except the person who is truly at fault. It's sickening. I know it sounds crotchety but the current generation in High School all the way through Elementary School is a complete mess, there are some great kids but the rotten apples are spoiling the lot.

If there's one good thing that comes out of a deep recession maybe it will slow some of the instant gratification seekers who now have to actually worry about money.

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Man, some of you guys really have no clue. I'm no advocate of the NAACP but when it comes to the financial crisis, much of the cause stems from lenders' discrimination practices. That's why Clinton demanded reform for Fannie and Freddie. And when he proved just how profitable REGULATED lending to middle and low income minority families could be, that's when the private sector impeached him, changed the rules, deregulated the lending industry, and sunk their teeth into the windfall.

How many of you guys have actually purchased a home??

Do you guys know what earnest money is or what happens to it if you default on a closing??

It's not so easy for some people just to walk away from the table after they've already put a deposit down on a contract, even if they misunderstood the terms or the terms were misrepresented to them.

:rolleyes:

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Man, some of you guys really have no clue. I'm no advocate of the NAACP but when it comes to the financial crisis, much of the cause stems from lenders' discrimination practices. That's why Clinton demanded reform for Fannie and Freddie. And when he proved just how profitable REGULATED lending to middle and low income minority families could be, that's when the private sector impeached him, changed the rules, deregulated the lending industry, and sunk their teeth into the windfall.

How many of you guys have actually purchased a home??

Do you guys know what earnest money is or what happens to it if you default on a closing??

It's not so easy for some people just to walk away from the table after they've already put a deposit down on a contract, even if they misunderstood the terms or the terms were misrepresented to them.

:rolleyes:

To answer your questions:

-Yes I've owned my home for several years, I qualified for a substantial amount and bought a reasonable home that I can afford even if my salary decreased for whatever reason. I also put down a down payment of 35% of the value of the house.

-Yes earnest money is catchy but there are ways around problems like the one the woman encountered here.

It is easy for many people to walk away from the table after they've put a deposit down, in particular if the bank and terms are not what you agreed to previously. You're excusing what amounts to stupidity, you should never buy something that you can't afford, you should never sign a contract that you don't agree with and you should never go into a contract negotiation without knowing your rights. Companies across the board have been taking advantage of those who are either too lazy to read contracts or simply too stupid to know any better, surf any website with ads and you'll see dozens of examples of companies profiting off of people exactly like the woman in this article, the scale of money expended be different but they're very much the same.

Do I feel sorry for people like this? A little because she will likely suffer credit issues for a long time, but nobody should excuse her for signing a contract she clearly didn't agree with from the moment she read it.

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Man, some of you guys really have no clue. I'm no advocate of the NAACP but when it comes to the financial crisis, much of the cause stems from lenders' discrimination practices. That's why Clinton demanded reform for Fannie and Freddie. And when he proved just how profitable REGULATED lending to middle and low income minority families could be, that's when the private sector impeached him, changed the rules, deregulated the lending industry, and sunk their teeth into the windfall.

How many of you guys have actually purchased a home??

Do you guys know what earnest money is or what happens to it if you default on a closing??

It's not so easy for some people just to walk away from the table after they've already put a deposit down on a contract, even if they misunderstood the terms or the terms were misrepresented to them.

:rolleyes:

I put down an earnest for my home to be built well before closing. I also understood that I would lose that earnest had I decided to back out of the deal before closing. Little sympathy for those throwing earnest money at something they cannot back out of in the event of an emergency. This just comes down to this "everyone has the right to own a home" sense of entitlement.

But seriously, way to assume "some of us guys" really have no clue. Get over yourself.

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