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NAACP: Big Banks Gave Blacks Bad Loans

From the NAACP’s amanuenses at the Associated Press:

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…

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.

It’s almost as if some people are never satisfied.

Notice that the only example the NAACP could site is a member who had to pay a higher interest rate for buying a second house for her son.

The outrage.

No wonder she feels “violated.”

This article was posted by Steve on Friday, March 13th, 2009. Comments are currently closed.

37 Responses to “NAACP: Big Banks Gave Blacks Bad Loans”

  1. Colonel1961 says:

    She didn’t have a choice, huh? Those Wells Fargo loan officers still carry six-shooters? Of course she had a choice – and she made a bad one. Pitiful.

    • U NO HOO says:

      Wells Fargo brings to mind “riding shotgun.”

      Remember those old cowboy movies?

    • Liberals Demise says:

      Once again……..the VICTIM role is played. I’m sick up and fed with the race card pulled at EVERY turn and opportunity. Maybe they would have got a better deal at the Maxine Waters Bank and Loan. Doubtful at best!!
      Bottom Line………They are still D-E-A-D B-E-A-T-S!!!!!!!

  2. 12 Gauge Rage says:

    Of course you still have a choice. On my first and second home amongst the mountain of forms to sign was a paper stating that my wife and I still had the option of backing out of the deal at the very last moment. To include a total refund of the money we placed down. Too bad she felt as if she had no other choice because she would’ve been within her rights to say no to the arrangement.

    • Colonel1961 says:

      In my state, there is a three day cooling off period. Change your mind within those three days – no harm, no foul.

    • catie says:

      When I went to buy my first home by myself I walked away and lost 5K because something didn’t seem right with the loan (the sellers were offering closing costs if you used their bank-this was 1996) and I wasn’t completely satisfied with the home inspection either. It can be done and should be done even though it’s very uncomfortable. She made the bad decision to not walk away. But of course it’s whitey’s fault because she’s been used and abused by old whitey so she doesn’t think she can speak up.

  3. Odie44 says:

    Ah.. the entitlement/handout/nanny American society of blacks.

    They complained there werent enough minority home ownership, strong armed banks – including Freddie/Fannie, to basterdize the very essence of a loan – the ability to be paid back within a set time period, and are now telling “horror stories” of “forced signatures” – AFTER reading the fine print. Ironically, the argument against giving these loans is the argument the NAACP is “making their case with.”

    As Steve pointed out and I have been screaming form day 1 – there is a huge amount of 2nd, 3rd, 4th mortgages that people held, to either flip and/or use as a credit base (like buying your son a home) – that were risky to begin with, defaulted – and most importantly – are not 5 person families being forced to shelters – no, they just foreclose, owner writes it off and a lucky person gets it for .20 cents on the dollar. Of course many of these people are doubling down buying suppressed mortgages with the same hope of flipping them, i.e. an investment with risk.

    What is to stop Sharpton, etc from going after Toyota due to new cars being repo’ed from buyers who couldnt afford it? He and his slimy ilk were “outraged” at something or other and demanded boycotts against Toyota – which forced them to make loans to blacks for car ownership. There was also a labor issue.

    Of course, expecting responsibility from Dems and liberals is a pipe dream…

    • Colonel1961 says:

      ‘What is to stop Sharpton, etc from going after Toyota due to new cars being repo’ed from buyers who couldnt afford it? He and his slimy ilk were “outraged” at something or other and demanded boycotts against Toyota – which forced them to make loans to blacks for car ownership.’ Dang Odie, don’t be givin’ Shakedown Sharpton any more ideas! lol

  4. Consilience says:

    Friends, this move is to galvanize and heighten the race issue in this mess. The fault line is CRA/Fannie/Freddie and the notion that credit is a civil right. I’m no more surprised about this than the murmurs about outlawing assault weapons because the nitwit in Alabama used one and they’re “causing” the drug wars in Mexico…
    This is just another step of agitation, plain and simple—an attempt to divide Americans into groups—remember: us against them, someone to blame and a victim—the American way under the thug and his sycophants…

    • Rusty Shackleford says:

      Now, wait a minute. I don’t exactly know how they do it in Alabama, but one of the reasons we use an “assault rifle” in Texas is to go after people who don’t pay up on their loans. I’m just sayin’

    • Consilience says:

      I was referring the the murdering bastard in Alabama this week, but your solution sounds acceptable…

  5. David says:

    I am in the process of buying a house right now and honestly, I can understand that she might feel a bit forced. By the time it gets close to closing everything feels like an avalanche with no way to stop it an change. However, it is possible and more importantly if the bank was changing rates on her at the last minute I then she should have gotten a clue as to the sleaziness prior to committing to using them. I am guessing that her case might be similar to our. We got a prequal at a decent rate and but then we looked at buying duplex to help the in-laws out. The rate was quite a bit different for that type of property (as a second home would be too I think). We have a great lender and loan officer who has been in very close contact with us and that has made all the difference. The problem is being uninvolved until the last minute.
    Secondly, they are claiming that black and white with similar credit scores got different rates. Why does the NAACP have access to people’s credit scores? And who’s do they have?

    • BillK says:

      That’s just it, though.

      It may feel like an “avalanche” but what she should have done is got up and walked out of the closing.

      The same way if an auto dealer’s finance guys play with the numbers in a way they shouldn’t.

      You’re the purchaser, and you have the right to tell the lender or seller to take a flying leap at any time up to the point where the final “I” is dotted and “T” crossed.

  6. Rusty Shackleford says:

    “Once you take out factors relative to income and credit risk, the only difference between the borrowers is the color of their skin.”

    Well, duuuuh.

  7. Barbie says:

    Why would one wait until closing to understand what the interest would be? I don’t understand…

  8. proreason says:

    “This is systematic, institutionalized racism,”

    What isn’t??

  9. Yarddog1 says:

    You simply cannot satisfy these people (Blacks). It is impossible. All of their problems are always someone else’s fault. Many Americans, both Black and White have lost any sense of responsibility for their own actions. This is certainly an interesting psychological study and says much about our society. For those of us who grew up in the 1950s, it is pitiful. Then, everyone worked and suffered the consequences of his / her actions. Simple – if you didn’t work, you starved; If you screwed up, you paid the price. Now – blame it on someone else or the consequences of history. It’s more convenient that way. Sickening!

    • Colonel1961 says:

      A rare occasion that I’ll play Devil’s Advocate: why should they be satisfied? What the heck would that gain them? The more they complain and cry racism, the more democrats and other assorted leftists start their little hearts a bleedin’ and then ship money by the trainload to these folks. Hell, they’ve figured it out. They won! They do nothing (a generalization here) but lay around, procreate, bitch, and commit crimes. (Hey Holder, that was pretty damned honest, huh?) And, even knowing that, there are career politicians who cannot wait to hear their stories of woe. Always the victims. Always held down by the man…

      p.s. there is a nice young black man in my yard at this moment, working his ass off planting new shrubs, a few trees, fertilizing all of it and installing a new irrigation system; so, as I said, it’s a generalization. Sadly, he is the exception, not the rule.

    • proreason says:

      “You simply cannot satisfy these people (Blacks). It is impossible”

      Just like children manipulating their parents.

      Unfortunately, we aren’t their parents.

      But financially, we might as well be.

  10. canary says:

    Did they have a gun to her head? Was her tongue cut out.

    “I was blown away,” said Weaver, an NAACP member. “I didn’t have any choice (but to sign). … It made me feel violated.” “This is systematic, institutionalized racism,” Tighe said.

    No, she should have had them re-write the contract. I made a car dealer do this 5 times once.
    This is why we are taught to read the small print. Read between the lines, no matter what color you are. On her pay, she was lucky to get a 2nd mortgage.

    6.4% interest rate in 1984? Blacks got a steal, while white folkes paid more to buy a home.

    • Barbie says:

      ‘This is why we are taught to read the small print.’

      And shouldn’t people read ‘the small print’ BEFORE they sit down to sign the final document?

      This attempt to shift the total blame to whitey is really starting to annoy me. I’m beginning to feel violated just reading this hokey and contrived NAACP complaint. I just wish ONE journalist would ask them to give some evidence (outside of ms blown away woman).

  11. “I didn’t have any choice (but to sign).”

    In the land of the free, and the home of more choice than ever was in the history of mankind, comes the whine of the eternal victim child – and a predictable plea for an imperial power to supply a gub’mint mandated solution.

    Anything, but that dreaded nemesis of adults everywhere: personal responsibility.

    Just remember boys n girls, that woman’s vote counts just as much as yours and mine.

    God save the Republic.

  12. caro says:

    The fact that fixed rates in 1984 were 13-15% makes this whole story suspect.

  13. canary says:

    With the race card vocally played daily by Obama & team, means “whites” were “targeted” by Holden’s racist remark that we are a nation of cowards. If whites do as Holden says and discuss race issues, then they are labeled racists.
    It’s darned if you don’t discuss it, darned if you do discuss it. Only A U.S. Attorney General with his complete authority, with no one topping him, could call America a nation of cowards. I’m sure other countries just love these John Kerry’s, Bill Ayers, Obama’s taking off his American pin, his puppet Michelle only now proud to be American.

  14. curvyred says:

    I smell another shakedown of the banks – despite the fact that the original shakedown is the reason why we have so many foreclosures.

    Is there no reality or personal responsibility for some people?

  15. CGardner says:

    When I closed on my house, I paid a lawyer $500 to make sure everything was in order. Where are these people’s minds?

  16. VMAN says:

    Are Orientals complaining? Are Hispanics complaining? Are Italians complaining? Are Indians complaining? The answer is NO!!! Why is it always the same race the is the victim? Rhetorical question of course.

    • Colonel1961 says:

      A few months ago, I wrote a letter to our local rag decrying the constant victimhood of blacks, and specifically mentioned that Indians and Italians weren’t endlessly harping about their victimhood status and that those two groups weren’t exactly treated well by the general public at times in their American experience.

      A black lady retorted to my missive by saying that being black was the ultimate trump card. I swear. Can you imagine going through life with that viewpoint. Pitiful doesn’t begin to describe the intellectual squalor that must accompany that existence…

  17. U NO HOO says:

    April 1969, we got 7% home mortgage,

    2004? 11% Must have been Bush’s fault.

  18. jrmcdonald says:

    No Free Will? Sounds like a personal problem.

  19. mybrotherkeeper says:

    I think I’m putting 2 and 2 together. Remember Eric Holder’s disingenuous comments about cowardice and race? He was doing the classic ‘attack first and you’ll get more’ than if you have an honest discussion. He also said his Justice Dept. would get aggressive on civil rights issues again. Well, the other shoes have started dropping. Namely, he is attacking Sheriff Arapaio. This is to win the chance to get illegals in here to vote. They believe that if they do that they will be able to win in 2012. It is a big gamble, because they are alienating so many middle-of-the-roaders. It is obviously a gamble their pollsters are telling them they can win. We cannot afford to sit idly by and let this happen, because if it does, there will be no turning back. I’m not saying ‘get crazy’, I’m just encouraging us to share with our sphere of influences; because a country without freedom is not worth the cost of sitting back coward-like. This was the only article I saw that was somewhat appropriate for this comment, so I ask for your forbearance.

  20. MinnesotaRush says:

    “Similar NAACP lawsuits are pending against a dozen other subprime lenders.” .. and you can bet, many more to follow! ACORN utopia.

    “This is systematic, institutionalized racism,” .. Sadly, this b/s is rapidly erasing the progress that was made in race relations over the years. Once a victim .. always a victim. But gosh, if I’m just an innocent little victim .. I don’t really have to be responsible for just about anything. Right?!?!?

    I once heard that “the highest degree of adult maturity comes when you can take responsibility for every occurence in your life”. With many of these folks, we’re getting exactly the opposite. Doesn’t excuse it; just makes it more understandable.

  21. Rusty Shackleford says:

    I am actually glad that this stuff is coming to the fore since many of the people I’ve known in the past refuse to acknowledge the “angry black man” complex that exists in this country. I’ll revise it and call it a “cultural norm” where blacks are expected by fellow blacks to feign outrage, angst and other negative emotions and aim them directly at white society.

    It’s nothing new. And there was a time when there was just cause for direct and specific focus on certain issues. But after billions was spent and the cultural norm was adjusted to allow a level field, which I saw in spades (no pun intended…but it was fun anyhow)while in the military, it became obvious to me that that was simply “step one”. Step two is now the systematic destruction by blacks, for lack of any better reason, than to destroy anything that they perceive as being created by whites. Which, by the way, in case you were wondering, is all of Western civilization.

    To try to destroy it is like trying to tear down the Hoover Dam with a pointy stick.

    So, enjoining their “show of force” with whining, they, the blacks, not all, but the vast majority, adopt a “black first” mentality because 1) it’s easy to be angry and, let’s face it, it’s easy to label oneself and call it a ‘legitimate cause” and 2) it’s also easy to re-tread ground that was walked in legitimate cricumstances and keep playing the same tune.

    Trouble is, so few sequels are any good and actually are usually much worse than the original.

    Take any follow up record by any band after a smash hit release…

    Take any follow up movie, book, etc.

    Then, finally, there’s that notion of actually seeing the work that was accomplished from the 1950’s to today where people are considered equal and so forth. The black guy I work with who has the same job as me? He gets paid the same. He has the same number of hours, vacation days, etc.

    In the military, the promotions are based on actual performance…and maybe a good example of it (ironically) that the general public can see, is Louis Gossett Jr in “An Officer And A Gentleman” where is is a Marine DI of considerable enlisted rank. That is not an easy accomplishment but there are thousands of cases of that actually happening, in real life, in all branches of the military.

    Finally, ignoring Obama’s ineptitude, the mere fact that a black man can get elected in this nation should put to bed any notion of racism as well as finally silence white guilt.

    Yet, interestingly, the noise continues. And who makes the loudest noise still?

    My mind has been sufficiently boggled.

    Someone who said it better over at American Thinker:

  22. Barbie says:

    But I thought all would be harmonious and all racial divisions healed once Obama was elected…

  23. Professor_Repulso says:

    “In a heartbeat, Federal Reserve Chairman Ben Bernanke was defending a taxpayer-funded rescue of reckless lying mortgage cheats; he actually likened them to fools who smoke in bed: ‘I think the smart way to deal with a situation like that is to put out the fire, save him from his consequences of his own action but then, going forward, enact penalties and set tougher rules about smoking in bed.’
    “Take note of the fact that America’s ‘mortgage crisis’ is essentially a five-state foreclosure problem. The national average of mortgages that are ‘underwater,’ that is to say, that have contract prices that exceed the market value of those properties, is 14%. Even so, in New York the underwater rate is a mere 4.4%. But in those five with whacking big illegal alien populations, the underwater rates are over the top – accounting for the bulk of America’s troubled mortgages. Nevada leads the country with an underwater rate of 48%, almost half of all mortgages. In California the rate is 27%; in Arizona, 29%; in Michigan, 38.6% and in Florida the rate is 29.2%.
    “In November of 2008 only four states, Arizona, California, Florida and Nevada, accounted for 53% of all November foreclosures (136,779 out of 259,085). The 2005 – 2007 real estate bubble was concentrated in those four states. States that didn’t produce a housing bubble are not enduring foreclosure problems today. In West Virginia, for example, there were only 34 foreclosures in November of ’08. Minus those four states, foreclosures in the remaining (46) states were up by only 1.61% in November of 2008 compared to November of 2007. When those four states are included in the statistics, the foreclosure rate leaps up to 28.22%. It’s bracing to think that a healthy and enforced immigration policy might have averted the current global economic meltdown.”


    While not totally on topic, it would seem to be relative.

  24. joeblough says:

    I have to admit, this article made me smile.

    In the immortal words of Lilly Tomlin — no matter how cynical I get, I just can’t seem to keep up.

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