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From Salon.com:
Staggering findings have emerged about the vast extent to which minority households were worse hit by the housing market crash than white households. Now the Department of Justice is preparing a lawsuit against Wells Fargo, the nation's largest home mortgage lender, for "allegedly preying upon African American borrowers during the housing bubble and steering them into high-cost sub-prime loans."
Read the full story here.
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By: Lifeskills on 8/06/2011 8:13PM
They are being investigated for the, "Trick" in other words the 'Way' they got those people to think they could make those payments. The banks didn't tell anyone, "We'll give you a loan but in a few years you won't be able to make the payments," and they said, Ok I'll do it any way. Even the people who bought to big know they would have to eat beans every day to pay for the house, didn't think it would put them in the street.
It's another case of, "The Pigeon Came Home To Roost." It's been published by a number of Gov. loan over site agencies, like HUD, and the NAACP for years.That, African Americans are forced to turn to third party, and sub-prime lenders who charge outrageously high interest rates. It's a fact that African Americans got turned down for loans by their own standard banks and credit unions even though their application matched or bested the credit of their White counter part.
Over the years millions of African Americans have been realizing a slow but study raise in business and home ownership regardless of the sub-prime lenders. These sub-prime and third party lenders, "Parlayed" the bound to fail loans into a, mortgage default investment scheme, no matter who or what color and regular banks followed. This, at a time when billions where sitting around looking to be invested. All the big finance names brought into it, some with your retirement fund money. But, the blind greedy pigs made a mistake. The Bank of American admitted it didn't even check many of the home loan applications to see if anyone could make the payments. They didn't figure the interest rates running up so fast and high that payments would stop. "Total default on loans means Zero income all around." Millions of payments stopped. Banks could see it coming and stopped home construction loans then everything from the carpenter, window glass, roofing, metals, pipe, wire, and who makes them import/export got hit, pay roll loans which some companies do on a regular bases stopped. Banks have not been lending and that's why the low job rate. The banks made money playing the stock market that's what got it up and them to where they're now, "Not, profit from Lending and Return.
Which comes first the Chicken or the Egg. I say the banks have to lend the money, then the companies can buy material, and employ.
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By: rh on 8/06/2011 9:34PM
All well and said, but if one cant understand the contract their signing, one must suffer the consequences, for their decisions.Rich people lost their home to by taking their equity out of it and it unwisely.Racism against blacks/mesicans by whites is meant to cover up their failures and responsibilities, for losing their homes. Almost any subject in america,where whites were part of it slavery, massacres, robbing and taking of land,they will tell you quick its not their fault their ancestors did it but at the same time immortalize them with statues, naming buildings and freeways after them.
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By: Gayle on 8/08/2011 11:00AM
My grandmother who lived to be 93yrs old passed in April 2011. She told us grandchildren, all in our late 30's and 40's now that we are about to endure in economic slavery and that she hoped to live to see the first black president and she did. She told us to get educated and prepared for what's about to come in the days/years to ahead. She screamed entrepreneurship, owing your own businesses because blacks are not getting no where. Given that she raised my father in Independence MO. which was a state that she had to fight for the right's for her children under the President Harry Truman era. She fought hard for civil rights/woman rights to become the first african american female to deliver mail in that state. Long story short, we haven't seen nothing yet. Listen to your elder's if you can't believe no one else. They have no reason to lie!!! I miss you Virginia Mae Tillman-Jacobs. Your were a very wise and intelligent women of your time. Your grandchildren will accomplish that book you wanted so desperately written to tell your story.
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By: pimpinperry2 on 8/08/2011 1:33PM
@ Gayle...your grandmother is right. Our grandparents lived thru the great depression and the survial skills that acquired has not been passed on to our generation. Mostly because too many of us has it much easier then they did and can't imagine what life was back then. They didn't have the social welfare programs that we have today. They have tolearn how to make it on their own. I listened to my grandparents {bless their souls} and what they told me years ago makes sense today.
You're right we have not seen the worse yet. Too many balcks are caught up in the myth that the U.S. is a rich country....we're not. A rich country doesn't run deficits into the trillions like we are doing now. Of course there are rich individuals / corporations but don't let that confused you with the U.S. government. In the year 2013 is when those budgets cut will start. A reduction in medicare, social services and unemployment benefits at the federal level. At the state level some republican run states has already started to reduce benefits.
If we don't get our act together we will be forced into economic slavery.
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By: rh on 8/08/2011 2:34PM
@Gail & Pimpinperry, very insightful posts from the both of you.This also is why Obama has been dumped on so heavily by the Gop. They need a scape goat, for all their failures of businesses,banks.
Being poor during segregated times, people knew how to farm the land and grow food. The city will be devastated for anyone.
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