« | »

Stupid Minorities Tricked Into Mortgages

From the shameless propagandists at Reuters:

[2:45 minutes in:] … "We marched together in the streets of Chicago to fix our broken immigration system. And it’s because of that twenty year record of partnership with your communities that you can trust me when I say I will be your partner in the White House and I will be your champion in the White House. And that is what you need now more than ever.

Racial predatory loans fueled U.S. housing crisis: study

By Nick Carey Mon Oct 4, 2010

CHICAGO (Reuters) – Predatory lending aimed at racially segregated minority neighborhoods led to mass foreclosures that fueled the U.S. housing crisis, according to a new study published in the American Sociological Review.

Reuters doesn’t bother to mention it, but the American Sociological Review is published by the ultra left American Sociological Association.

Predatory lending typically refers to loans that carry unreasonable fees, interest rates and payment requirements.

Or it can mean anyone who lends to a member of the officially designated victim classes and who expects to be paid back. Which is the meaning here.

Poorer minority areas became a focus of these practices in the 1990s with the growth of mortgage-backed securities, which enabled lenders to pool low- and high-risk loans to sell on the secondary market, Professor Douglas Massey of the Woodrow Wilson School of Public and International Affairs at Princeton University and PhD candidate Jacob Rugh, said in their study.

The financial institutions likely to be found in minority areas tended to be predatory — pawn shops, payday lenders and check cashing services that "charge high fees and usurious rates of interest," they said in the study.

"By definition, segregation creates minority dominant neighborhoods, which, given the legacy of redlining and institutional discrimination, continue to be underserved by mainstream financial institutions," the study says…

Subprime lending refers to loans made to consumers with poor credit and others considered higher risk. They tend to have a higher interest rate than traditional loans.

So, by Reuters’ definition, any time money is loaned to people with bad credit at a higher rate than it is loaned to people with excellent credit, it is a "predatory" loan.

The study, which used data from the 100 largest U.S. metropolitan areas, found that living in a predominantly African-American area, and to a lesser extent Hispanic area, were "powerful predictors of foreclosures" in the nation.

Clearly this is racism. The banks purposefully force blacks and Hispanics not to pay back their loans. They do not want money from black or brown people.

Even African-Americans with similar credit profiles and down-payment ratios to white borrowers were more likely to receive subprime loans, according to the study.

"As a result, from 1993 to 2000, the share of subprime mortgages going to households in minority neighborhoods rose from 2 to 18 percent," Massey and Rugh said.

They said the U.S. Civil Rights Act should be amended to create mechanisms that would uncover discrimination and penalize those who discriminated against minority borrowers.

Absolutely. There is no doubt that blacks and Hispanics must be loaned money at the lowest possible rate no matter what their credit rating or income level. Any other practice must be criminalized.

The study is published in the October issue of the journal.

Here are some other articles published by the American Sociological Review:

American Sociological Review – Selected Articles

The Things They Carry: Combat, Disability, and Unemployment among U.S. Men Alair MacLeana (August 2010)

Latino Immigrants and the U.S. Racial Order: How and Where Do They Fit In? Reanne Frank, Ilana Redstone Akresh, and Bo Lu (June 2010)

2009 Presidential Address: The New Politics of Community, Patricia Hill Collins (February 2010)

Voting to Ban Same Sex Marriage: Interests, Values, and Communities, Rory McVeigh and Maria-Elena Diaz (December 2009)

Discrimination in a Low-Wage Labor Market: A Field Experiment, Devah Pager, Bruce Western, and Bart Bonikowski (October 2009)

Does Diversity Pay?: Race, Gender, and the Business Case for Diversity, Cedric Herring (April 2009)

2007 Presidential Address: Can Power from Below Change the World? Frances Fox Piven (February 2008)

Why yes, that is the Francis Fox Piven of Cloward and Piven – and the author of the ‘Motor Voter’ bill, whose stated goal was increasing voter registration under the linking of social services or Department of Motor Vehicles usage with voter registration offerings.

Ms. Piven is a past president of the American Sociology Association. Moreover, for her service to humanity, Ms. Piven has been awarded the American Sociological Association Career Award for the Practice of Sociology, and the ASA’s Lifetime Achievement Award for Political Sociology.

Luckily, Reuters didn’t bother their readers with any political characterization of this selfless organization.

This article was posted by Steve Gilbert on Monday, October 4th, 2010. Comments are currently closed.

17 Responses to “Stupid Minorities Tricked Into Mortgages”

  1. Mithrandir

    AFRICA LENDING…..in America

    1. If you don’t lend Africa money…..you’re racist.

    2. If you charge them interest….you’re racist.

    3. When they can’t pay back the money, if you don’t forgivethat loan……you’re a racist.

    What it all is, is FREE MONEY FOR BLACK PEOPLE. We have been playing this game for a looooooong time folks. And we have been doing it in America for a while too. This is just the same ‘ol game with the same ‘ol results. Give them something, then don’t expect any payment in return.

  2. Liberals Demise

    Well…..from my readings on this, we got Beelzebubba Clinton to thank for starting this mess. Toss in the congressional Banking Oversight Committee for good measure. Then add the African-American element that had no intention of making good on what they deemed as a “GIMME”. (We be owed)

    • Mithrandir

      For them, it is always better to receive than it is to give.

      And for them, it’s always, “Come on give it to them!” then after some time, “Come on, just let them keep it!”

      There is no scenario known to human kind in which black people are to blame for their own behaviors and outcomes.

  3. wardmama4

    So according to Reuters, I’m a minority and the lending company was racist to sell my loan to a bottom dwelling credit collection company (sub prime ‘loan’ outfit) because they are out to get me and hold me down?

    You can (sort of) beat the system – I know why our ‘loan’ panned out this way – not happy about it but we had to have a roof over our head. We told the truth which included a fraud alert on our credit report due to VA & Bank of Amigos having ‘lost’ my hubbys ‘information’ – We have dutifully paid our monthly obligation and guess what – we are now down to within a hundred dollars of the original loan payment amount.

    All it takes is being responsible – and that is the key to the entire housing market mess – Congress & ACORN forced bad lending practices and then made it worse by ignoring the situation (under a Repub Administration) and then wala – but they thought the Messiah they elected would do the real work – they did not know that he was even more Left then them and would just throw fuel on the fire to make it worse.

    The system is rigged against the American citizen and that is why the MONEY (i.e. Lobbyists & Corporate ‘donations’) need to be stopped immediately – so that We The People have an honest chance to actually work within the system fairly, honestly and with justice.

    Funny how the people who scream about that the most – are the ones who are escalating the strangle hold upon the ‘least of these’ – The American citizens who make this country work. I pray they all seek forgiveness or burn in hell.

    God Help America
    A Proud American Infidel

  4. AcornsRNutz

    This is not news, nor is it a new study. We have been hearing this garbage for two years now. What I find funny is the race industry of the left treats being any kind of minority or a woman as a handicap, somehow they are too fragile and/or stupid to survive on their own. So who are the racists here? Sotomayor Vs. Palin is a great example of this. When a friends libwit wife was laying into Palin and talking up Sotomayor I mentioned that Palin worked her way up from a school board, has a family with their own share of problems and has to withstand constant media bombardment. Sotomayor grew up in a decent family and environment, went to good schools, made good money and is in the Supreme court. The adversity she overcame was the handicap of being hispanic. I personally don’t regard that as a handicap, but that makes ME the racist. Go figure.

  5. proreason

    I must be confused about the definitions of majority and minority.

  6. The culpable role of the C.R.A. has been conveniently forgotten by Reuters.

    The C.R.A. (community reinvestment act) under the over sight (under sight?) of Freddie and Fannie required banks to have a certain percentage of their loans be to high risk – mostly minority – borrowers, or these banks would face, uh, “consequences” from the Feds.

    In 2008, the WSJ detailed the Feds negligence in fueling the sub-prime melt down.

    S &L’s own Mr. Gilbert has been on top of this malfeasance for a very long time, as well.

    But us folks enamored of facts and truth are obviously ‘racist’ to the guardians of Leftist narrative at Reuters.

    • proreason

      I’d say more than ‘culpable’……..the C.R.A is the central, fundamental, dominating cause of the economic meltdown.

      The other commonly stated causes of the economic meltdown, finanicial derivatives, low interest rates by the Fed in the early 2000’s, and America’s “credit addiction” would never have happened or never would have been problems without the C.R.A.

      1. Derivatives were developed because government regulators forced banks to spread the risk of the toxic loans.
      2. Greenspan kept interest rates long after the economic threat of 9/11 had passed because he bought into the concept of ‘affordable housing’ for low income people, as did Dubya.
      3. America’s ‘credit addiction’ had existed from the 1940’s through the 1990’s with no catastrophic consequences. When loans are only made to people with the ability to repay them, there are no dire consequences.

      C.R.A. is the culprit. Period.

      It’s the smoking gun evidence why the most destructive force in the world is Big Government. It doesn’t matter whether the intention is good or not, the risk of every action by Big Government is potential catastrophy. It’s no different than you going to Las Vegas and betting 20% of your lifetime income on every roll of the dice. You might get lucky a few times, but in the end, you will lose everything, every single time.

      On the other hand, markets solve problems every time. If a potential solution doesn’t work, it fails and other potential solutions arise until the problem is solved.

      This is the most profound reason why freedom and capitalism must prevail. The only alternative is serfdom for 99.9% of the world, and unlimited wealth for .1%

    • CRA though would largely have been irrelevant if Glass-Steagall had not been repealed; if banks could not find a way to disguise these packages, they wouldn’t offer them…because at the end of the day, it’s a question of who’s holding the bag.

      On that, I sort of (but not completely) disagree with proreason.

    • proreason

      “CRA though would largely have been irrelevant if Glass-Steagall had not been repealed”

      Repeal of Glass-Steagall is used by libs like the other 3 excuses. It’ a way to divert attention form the real cause of the meltdown….insane liberal policies.

      The simple truth is that without the C.R.A, the meltdown would not have happened, even if all of the other stalking horse ’causes’ were all in place.

      No loans to deadbeats, no meltdown. Period.

      Next we will hear that global warming drove bankers so insane that they were compelled into ‘predatory lending’.

  7. GetBackJack

    Latest Polling Data shows Obama’s job approval rating among Blacks at 92% percent. Combined with the data of the mortgage bubble, I’d have to say yes, minorities are stupid.

    Hey. Life is hard. Life harder when you’re stupid.

    • JohnMG

      Wonder how many of those polled were white people? And the polsters…..most of them wouldn’t know a good job from a bad job, from a snow job, from a blow job, since most of them have never held a REAL job.

      Garbage in–garbage out!

    • confucius

      Define “minorities,” please.

  8. Mae

    If after going to school for 12 years you can’t read and understand and/or ask questions, you deserve to lose your house subsequent to signing for a loan YOU KNOW YOU CAN’T PAY BACK. The problem arises that we all have to pay for their duplicity. Nobody forces you to go house-hunting; nobody forces you to sign loan papers (puts a gun to your head and rams that pen in your hand); nobody forces you to be stupid. Losers!




« Front Page | To Top
« | »