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Is there no shame in the lending game?
Just when you think you've heard everything they add a little fizz --reverse redlining. The American dream has become a horror show in
Even those qualifying for traditional mortgages were hit with the fees, the city alleges. Mayor Dixon said in a statement, "Reverse redlining causes a real and very dramatic ripple effect in our neighborhoods by driving down the value of nearby homes and city revenues."
Redlining dates back to the days when banks refused to lend to minorities to purchase homes in white neighborhoods. The practice was outlawed through legislation in the 1970s and is largely responsible for the Community Reinvestment Act, which mandates that banks be accessible and invest in the communities they serve and do business in.
Can't folks just do the right thing without marches and legislation? This subprime lending crisis will make Enron look like a high school prank before it's all over.
Is your neighborhood being affected by foreclosures? What do you think needs to be done to address this crisis in our communities?
Read the complaint. http://www.baltimorecity.gov/news/press/0108/Complaint%20Draft%20(FINAL)%2012%2020%2007.pdf
Comments: (4)
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By: JC on 1/11/2008 6:31AM
Everyone Wants To Own A Home. Mortgage Lenders Took Advantage Of Buyers By Lending To Those That They Knew Could Not Afford It. Furthermore, They Charged Home Buyers Ridiculous Fees On Homes That Were Worth Much Less Than The Selling Price! Now, We Will All Be Paying For This Recklessness For Years To Come.
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By: WF Customer on 1/12/2008 10:06AM
I am a black, single mother of one child, who has a home financed with Wells Fargo. Over the years I have had several hardships from disability to job loss. Each time I suffered the possibility of losing my home. Wells Fargo was very easy to work with. The key to making it work was me following through with the payment plan offered to me and most importantly, calling them before it became a problem. I've been very blessed in the last four years to still have my home but it took a lot of effort by me, not handing over all the responsibility to the bank. The worse part of it all is that I had to refinance with a higher amount which was fair. Simply the amount of my original loan plus what I owed. The interest rate was changed from 5.5 to 6%. I suppose .5 points was not a big deal when it came to either keeping or losing my home. Thank you for putting info out there for consumers. I just felt that Wells Fargo also got a positive statement for how they have helped me.
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By: Dee on 1/12/2008 3:37PM
In my opinion, the consumers who are being directly affected by the mortgage companies should sue. The entire concept of a mortgage should be changed. It is a shame to have to pay 3 times as much for a house than its worth. Then to make matters worse, to lose your home because of unscrupulous practices and the inability to refinance. Those who are responsible should not get away with what is happening and it's only going to get worse.
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By: anna on 1/15/2008 9:04AM
When buying a house for the first time you should do research or take a class in homebuying. Before signing any contracts you should get a real estate lawyer to go over the contract to explain to you what your fees are going to be. Most importantly make sure an adjustable mortgage is what you want because with the economy your rates are not going to stay the same.Also use the internet to look up terms and read everything especially the small print..Never sign anything until you understand everything in the contract...Talk to someone who can help you first...These banks are not your friends they are out to make money that is the bottom line
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