Friday, March 13, 2009

Forced to Sign a Loan

I think not!

Here's the link for this story, although I copied [at great time and trouble for y'all] it in its entirety.

This story is just another example of adults NOT taking responsibility for their OWN actions by claiming the dreaded “discrimination” by the other party in an interaction. If they can accuse someone by playing the Race Card, so much the better!

I'm going to interject MY thoughts in the text in a different color.

By JESSE WASHINGTON [of the Associated Press]
The NAACP is accusing Wells Fargo and HSBC of forcing [forcing? They could have shopped around or simply refused the loan] blacks into sub prime 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 Tie, 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. [There are other considerations when an interest rate is offered, such as stability of employment history, rental payment history, spending habits relative to income and history of loan default. Yes, they DO look back farther than the standard 7 years on your credit report.]

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 [so instead of allowing her son to obtain his OWN loan, she let those bankers FORCE her to sign those papers] (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." [WHA, WHA, WHA. See factors listed above]

Tighe estimated that "tens of thousands" of blacks had been forced [again the 'Forced” word. NOBODY is forcing them to TAKE these loans] 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.


Crucis said...

Crud! Wells Fargo is my mortgage holder. They bought the paper from our original lender. We can pay off the house. But...I'd really rather not have to do that at the moment.

Companies need to grow a pair and tell the feds just what they can do with their so-called "stimulus" funds.

Old NFO said...

Ridiculous... simply ridiculous! I'll bet if ALL the info comes to light, most of the selected minorities in fact didn't qualify for standard loans.