Chronic Absenteeism Hurts Millions Of Students
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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: Camille on 2/11/2009 11:08AM
Yes, but now they are depending on the lower income to be able to help in boosting the economy. Since they took all of theirs up front thet want be happening. They didn't leave anything at the bottom. If we need a car repair and are a day late on paying, the fees are ridiculous. They have all our money now. I finding it fasinating watching them. I hate the fact that some or taking the easy way out (suicide). I'm in the boat business and the repo are at record levels. My bible says the first will be last and the last will be first. It also says do unto to others as you will have them do unto you. We know how to live with less. I'm enjoying watching them learn. Vengence is min said the Lord.
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By: Faith on 2/11/2009 1:41PM
I agree with Craigers. The problem is not with the banks or even the race. The problem begins at home and we need to start educating our children on credit and financial decisions early on. I wish my parents had told me how hard it would be if you make bad decisions with your money and taught me how credit worked. Now that I am older I cannot blame anyone but myself for a lot of the decisions I made in the past and wish there was a time machine for me to jump into! I think high school seniors and college students should be forced to take courses on personal credit and finances. Financial aid advisors should also explain every detail about student loans, credit, graduating, and, etc. There's a lot of students who will take a more than what they need in student loans just because they see it as free money at the time. Also credit card companies should not be able to market on campuses. That is where most of my trouble started. I admit I was young and dumb and filled out a credit card app at a table in the student center just wanting the free t-shirt!
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By: rosa on 2/11/2009 9:38PM
my husband was takin my a lender at 41%.they wait until he had the work done first,then told him what the rate was
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By: Stacy3516 on 2/13/2009 11:23AM
I guess you still have the salty taste in your mouth from the election.
Yes We Can
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By: islandgirl on 2/15/2009 8:23AM
I think the above comments overlooked the obvious. It was found that those companies were "intentionally" overcharging latinos and blacks. They knew what they were doing and I don't think asking the right questions would guarantee fair treatment! There had to be whistleblowers who brought this out to light. If you applied for a loan and you had a minor blemish on your credit report, you had to pay more if you were latino or black and the whites who had the same minor blemish got a better rate than you and paid less! That's what happened and is happening now. No one checks this. Whatever the bank says, goes and as the one applying for the loan you "trust" that they are treating you fairly. We need more government oversight (independant auditors) to check all bank loan practices to make sure discrimination like this is not happening. I'm sure it would not take long to see that this type of discrimination is wide spread.
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By: kelly on 2/15/2009 6:38PM
where can I go to find out if I have had a mortage with these companies
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