NAACP FILES LANDMARK LAWSUIT AGAINST MAJOR HOME MORTGAGE COMPANIES FOR DISCRIMINATORY LENDING

[babylonsister]

http://www.naacp.org/news/press/2007-07-11/index.htm

NAACP FILES LANDMARK LAWSUIT AGAINST MAJOR HOME MORTGAGE COMPANIES FOR DISCRIMINATORY LENDING

July 11, 2007

The NAACP filed suit in Los Angeles federal court against 14 of the country’s largest lenders, alleging systematic, institutionalized racism in sub-prime home mortgage lending. This is the first known lawsuit that challenges such lending practices on a broad scale. The suit was announced at the NAACP’s 98th annual convention, themed “Power Beyond Measure,” in Detroit through July 12.

According to the lawsuit, African American homeowners who received sub-prime mortgage loans from these lenders were more than 30 percent more likely to be issued a higher rate loan than Caucasian borrowers with the same qualifications.

“We are asking our members and all African American borrowers who bought or refinanced a home in the last five years to come forward and tell us their stories or at least re-examine their mortgages,” said NAACP National Board of Directors Chairman Julian Bond. “They can help us correct these egregious, demoralizing practices that too often turn the so-called American dream of homeownership into a nightmare.”

Other studies cited in the lawsuit demonstrate that disparities are pervasive. In fact, upper income African Americans are more than twice as likely to receive higher cost loans as their lower income white counterparts. Just this morning, USA Today reported that the National Community Reinvestment Coalition’s most recent study underscores this point, finding that discrimination against minorities persists in mortgage lending. The Federal Reserve Board, U.S. Department of Housing and Urban Development and the FDIC have all made similar observations.

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[malaise]

1. K & R

About time.

[Lithos]

2. Very nice

Been needed to be addressed for a long time, glad to see they are moving ahead with it.

L-

[MADem]

3. You've got to wonder at the bare-bones balls of those guys.

I mean, really--it's so BLATANT. And they just ~~~do it!! Like it's "no big deal, business as usual."

We have a long way to go, still.

All that said, I hope this results in a MASSIVE payday for borrowers who were screwed.
And I hope NAACP gets some telling stories from borrowers to illustrate their case.


They provided a list of sinners in their press release--hmmmm. Look at these bastards. So much for those cutsie WAMU ads on the Tee Vee, I guess:
Mortgage lenders named in the lawsuit include: Ameriquest, Fremont Investment & Loan, Option One, WMC Mortgage, Countrywide, Long Beach Mortgage, Citigroup, BNC Mortgage, Accredited Home Lenders, Encore Credit, Bear Sterns First Franklin Financial, HSBC Finance and Washington Mutual.

[mountainvue]

5. Fremont is no longer in business if that's any

consolation.

[MADem]

6. Good. The baaastids!!!! nt

[flpoljunkie]

4. Good for the NAACP! It's also time, Dems, to fix the bankruptcy bill which has made matters worse.

[babylonsister]

7. .