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By Alexis Garrett Stodghill, BlackVoices.com
The Daily News is reporting that two mortgage brokerage firms, HCI Mortgage and Consumer One Mortgage, have been found guilty of intentionally over-charging black and Latino home loan applicants. To give an example:
The investigation found that Hispanic and black borrowers who used HCI Mortgage paid around 50%, or about $2,500, more than white clients.A user on the Daily News Web site made a very poignant comment regarding the situation. BronxGalG observes:
"This news is not new. Minorities are always being taken advantage of because they don't know how to question things or inform themselves before taking on huge responsibilities. They need to become educated consumers, first and foremost. Until they do that, they will continue to be overcharged and discriminated against on everything. It's a shame this keeps happening and will continue to do so. Let's try to become well informed consumers so this practice stops once and for all."
Well said. These two companies have been brought to justice, having been ordered to pay $665,000 in restitution to 445 minority borrowers. But think about how many companies must have gotten away with the same thing for years, without ever being caught. Think of the firms that prey on minorities today in the areas of car loans, "bad credit" credit cards and "pay day" loans. You can be sure that this recent finding gives us just a hint of the extent of minority lending abuses. This payback is pocket change when compared to the ocean of lost wealth created by the perfectly legal loan scams that are perpetually siphoning funds from blacks.
As predatory lenders clearly see blacks and Latinos as fair game for unconscionable practices, we really do need to look out for ourselves. How can we battle these criminally-minded companies? Please leave your thoughts below.
Comments: (236)
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By: Lauren Johnson on 1/07/2009 2:27PM
""Minorities are always being taken advantage of because they don't know how to question things or inform themselves before taking on huge responsibilities."
Are you kidding me??? THAT sounds racist to me too! So basically what BronxGalG is saying is that because I'm Latina I don't know how to question things or inform myself before taking on a huge responsibility??? Does anyone else find that extremely insuliting????"
How can it be racist if it's true? It's not saying YOU cant question things.. it's pointing out a fact that Blacks and Latino's typically dont research and ask these questions, and thus get taken to the cleaners by financial lending companies. Instead of getting offended and taking it as a personal attack, you should realise that many in your own race arent doing the things they should be doing and thus creating this breeding ground for predatory lenders to take advantage of people of the same race as you. This means YOU should be on extra guard when the day comes you need to get a loan for a car, house, or general everyday loan.
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By: fffffffffffffff on 1/07/2009 2:29PM
Your article overlooks the way minority politicians and organizers victimize their constituents by raising unrealistic expectations for home ownership and then forcing banks and S&Ls to grant loans to those who have almost no chance to handle the debt. The cost of owning property is far greater than paying the mortgage payment. Where is the thinking? Making a real difference is not done by standing in bank lobbies or ranting. The people need to know what is involved so they can prepare themselves.
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By: blackshark on 1/07/2009 2:31PM
somebody needs to look into jp morgan chase and see if they discriminated against minorities by taking back money that they loaned to them when the market took a turn for the worst. and then they get 25 billion dollars of the bailout money.they took my little 17,500 dollars.can i get 17,500 of that 25 billion.
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By: rob7628 on 1/07/2009 2:32PM
HeavenBound: As a Latino I also took offense to that quote, lets not forget also that Alexis Stodghill who wrote this article goes on to say that it was "well said"...seriously?
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By: oakland raiders on 1/07/2009 2:32PM
This is all a bunch of bs. The business people takes advantage of all people. That is the way the system works. Only the rich survives.
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By: justracn15 on 1/07/2009 2:33PM
There charged more cause they aren't going to pay up anyway!!!
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By: Dasmyle2 on 1/07/2009 2:37PM
People need to be aware of what they're getting into thats all. Its not a stupitidy issuse, alot of minorities are not totally prepared upon entering into mortgages, loans etc and we tend to accept these companies at thier word, however, that is not to say that many whites have been taken advantage of because they often have these same institutions working with them. Regardless if your black or white, money is green, and they will stick who ever they can!
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By: MY PHONE on 1/07/2009 2:40PM
As a black man i agree with the comment that most of us dont research and educate ourselves on the lending process. I am a sales person in the construction industry. In this industry people prey on lack of knowledge and under informed people. It is time to research, know exactly what it is you are signing. Just remember that we dont need to do business with any one company. As a customer you are the boss, the company is working for you. It is up to us to stop these practices. BE INFORMED. DO NOT ALLOW YOURSELF TO BE TAKEN ADVANTAGE OF!!!!!
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By: Robin Nagy on 1/07/2009 2:57PM
I have dealt with alot of companies out there that all they care about is scamming. I found out one company that I try to refiance my house with, had 40 complaints against them with the better business bureau. They also stole 99 dollars from me.I learned never get a loan from a telemarting call because first they offer home imporvements and then home loans. Also they send you letters in the mail. I also experienced many times that they do all the paperwork and promise you this and that and, they change the rates the day before you are about to close. I know they will sink to any level so they can make as much as they can out of people. Where I live they happen to scam mostly everyone including a huge part of the minorites. They were giving them loans on brand new houses that they can never afford. Loans with doulbe mortgages. I had a few companies tried to sneak in another mortgage payment I caught onto it. Mortgage companies and Real estate companies are in on all the scam together. When I bought my house i went throught four agents before I found someone to do the right thing.I can't believe how much a learned about how low somepeople will go thats why the economy is the way it is.
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By: Mike Ward on 1/07/2009 2:42PM
They did it to me also, they promised to give us credit for the additional 17.18 acres in the appraisal we paid for then didnt give us anymore value for the 17.18 acres, and after 3 1/2 years we paid $122,000 on a $219,000 loan and still owed $219,000 so we lost it after fourteen years. My family is devastated. WELLS FARGO ROBBED US! I HOPE THEY ALL GET NASTY HONG KONG DONG SYNDROME AND IT FALLS OFF IN THIER HANDS AND THE WOMEN GET HONG KONG BOOBIES! WELLS FARGO ROBBED OUR FANILY AND CHEATED US! TRUE STORY!
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