NAACP Says Bank Giants Steered Blacks to Bad Loans

Why would banks want to steer anyone to bad loans?

Banks are color blind. They don’t care about black or white.

They only care about the color green (when you pay them back).

All people need to look out for themselves and understand the terms of contracts that they sign their names to or hire a professional to do it for them if they are unable to do it themselves. Is it not equally as important to understand the terms of your loan as it is to have a qualified professional do a home inspection prior to the purchase? This is just one more example of blacks running away from personal responsibility as if it were the plague.

This is a contest to see whether the NAACP can whine loud enough
that the home loans will be paid off by the banks and government. In the long run the taxpayer is sure to pick up the
tab with the homeowners receiving a free house.

Not that any of these liberal racial pandering bank managers would do this, but they could come back and show how NAACP pressure and Federal pressure forced them to draw these subprime mortgages. This is why I don’t have way too much sympathy for these banks — they have enough power to have stopped this subprime mania if they only would have used it, but they went along anyway because they’re the same kind of racial lib that the NAACP is itself.

“This is systematic, institutionalized racism,” Tighe said. “Once you take out factors relative to income and credit risk, the only difference between the borrowers is the color of their skin.”

Either the NAACP is very stupid or they think the whom they made this stupid statement to is too stupid to see it’s logical flaw. Of course it’s precisely because of these factors that a claim of discrimination because of race is untenable. Unfortunately for the NAACP federal judges aren’t so stupid.

Black homebuyers have been 3 1/2 times more likely to receive a subprime loan than white borrowers, and six times more likely to get a subprime rate when refinancing, Tighe said. Blacks still were disproportionately steered into subprime loans when their credit scores, income and down payment were equal to those of white homebuyers, he said.

Why - in these supposed “anti-black” conspiracies by whites - do blacks come off as appearing easily manipulated and unintelligent?
Is Mr Tighe implying that “African” Americans are really stupid enough to be manipulated into taking sub-prime loans by whites? Or is this like the whites flooded the ghettoes with crack cocaine, as if whites have some magical ability to make blacks do what we want them to?

Also, I’m a New Zealander so my word isn’t gospel here, but I do recall a fellow poster on American Renaissance a few months ago who stated that it’s largely black bank employees who work with black customers desiring loans - just like “Hispanics” would prefer a “Hispanic” employee etc, each with a clientele “niche”.

I’d be very happy if anyone came up with the statistics of black employees who organised loans to black customers in this bank.

“This is systematic, institutionalized racism,” Tighe said. “Once you take out factors relative to income and credit risk, the only difference between the borrowers is the color of their skin.”

I await your protests on the racial composition of the NBA and NFL, Mr Tighe.

How can anyone be forced into a loan?Only the NAACP knows. If they were not “forced” into these loans, then Whitey would be guilty of racism for not loaning to them.

NAACP: “Tens of thousands” of blacks were forced into taking out bad loans.

The loans were alright. After all, they got real homes for these loans. These were the borrowers that were bad.

Now, once their speculation of making quick profit did not materialize, they want to walk away from their loans while keeping the homes.

How is is different from looting?

That is a big, fat lie!!! I used to work in a bank along with a good friend of mine who was in customer service.
Two black women came in for a loan, both were denied. These two women threatened to sue the bank for being racist. At that point, many customer service reps, management had to go back through several years & pull out all loan apps that had been filled out by blacks to see how many were approved & denied. The bank was forced to start giving out more loans to blacks even thought their credit may not be too great.
When I was there, more black customers could not keep a decent cheking account (overdrawn) or pay their loans on time verses Whites. I even found out by accident that the few black employees I worked were the same exact way as the black customers. I was furious due to the bank never saying anything to these black employees. My husband was a couple of days late on a loan. Since I was a bank employee, I got chewed out by downtown’s office since I was his wife & my name wasn’t even on his loan. Maybe if I was black, the home office would’nt had said anything to me!!!

Good! More power to the people!

For decades, Wells Fargo and HSBC (and Bank of America and Citibank and the rest) chose to favor minorities over whites in order to get favors from the Gummint and Wall Street.

Let them reap what they sowed.

“The NAACP is seeking reforms from the banks such as increased transparency in the loan process, educational outreach and internal training.”

You know what, I would like some major reforms from the banks (to say nothing of the stinking federal “government” who backs them) as well:

1.) “increased transparency,” into how many blacks it takes to destroy a given geographical area;

2.) “educational outreach,” to whites in regard to how an invasion by “enrichments” of color, are best dealt with;

3.) and “internal training,” at every commercial/institutional level, that specifies how and why “enrichments” of color, must be kept from invading white geographical areas from this day forward.

Will that ever come to pass?

Not bloody likely!

As always, God help us all!!!

“Tighe estimated that “tens of thousands” of blacks had been forced into bad loans, but said it was difficult to gauge the scope of the problem because banks keep much of their internal data private.”

Nobody can force somebody into a bad loan. When I got mortgage I was informed of all the available products including ARMs, no money down stated income loans, jumbos, and fixed conforming loans plus variable seconds. I chose based on the desire to stabilize my home payment at an affordable level over the life of the loan. I had a choice because I spent 10 years saving up the 20% down payment. After a refi, I ended up with a 30 year fixed at 5.25%.

Let’s get two things straight, which this article omits saying. First, blacks are less credit worthy than whites. That’s why they get stuck with subprimes. I’ve read in the Washington Post that blacks earning $65K - $85 K have much worse credit ratings on average than whites making less $25K. That means that even if a white person gets stuck with subprime loan he is more likely to pay it off. Euro-Americans come from an honor tradition where you make every effort to repay someone who lends you money; failure to do so is a personal disgrace that indicates weakness and moral failing. African-Americans come from a street hustler tradition, where you get the money anyway you can when you want to buy something: repayment is sort of optional. And if you do repay, its at your own convenience. Second, to the extent that there are predatory loan brokers, they tend to prey within their own ethnic group. So it wasn’t Mr. Whitey-The-Man banker who double talk blacks into subprimes, it was a bro’ who probably couldn’t tell the difference between an amortization schedule and a bus schedule. This is another manifestation of the ingrained street hustler tradition of the black community. And of course the cost to the economy of the black street hustler tradition is passed on to white consumers or socialized by Democrats like the Street-Hustler-in-Chief, Barry-Oh!

No one is forced into bad loans but there are those who are too stupid to read the contract.

My wife and I were offered one of these. We looked at eachother and said, “No!,” in unison. People took the loans because they thought they were making out, and getting away with something.

First, the NAACP sues Freddy Mac and Fanny Mae to make more loans available, now they sue because they made them - pure nonsense. I cannot believe that this lawsuit will go anywhere.

As stock prices were topping out and making outlandish historic highs, Jessie Jackson urged his fellow “Blacks” to get in on the action by buying stocks. Who is the NAACP blaming for THAT?

Ronald

Amusing how this one dolt didn’t bother to read the fine print until the day of the closing, and then claims she “had no choice” but to sign. And the NAACP is claiming that “tens of thousands of blacks” have been “forced” into bad loans? Cry me a river! Most of them grabbed the subprime loans with no intention of ever paying them back.

When is some big corporation or group of individuals going to wise up about how to deal with these drive-by lawsuits by the NAACP? Counter-sue, folks, and keep counter-suing as often as possible for as much as possible, until the trouble-making NAACP is bankrupted.

People of Color demanded the Community Re-investment Act and Jimmy Traitor Carter signed it in 1977. Yet NOW the NAACP is complaining about the effects?

Citing the CRA, the Fed and other financial regulators pressured/extorted banks into making more loans to less-than-creditworthy borrowers than they would normally be willing to risk.

When the CRA was created during the Carter administration, the administration also funded with tax dollars numerous “community groups” that have helped the Fed, the Comptroller of the Currency, and other federal regulatory agencies to enforce the act. Under the CRA, if a bank wants to make virtually any change in its business operations — merging, opening up a new branch, getting into a new line of business — it must first prove to regulators that it has made “enough” loans to the government’s preferred borrowers. The (partially) tax-funded “community groups” like ACORN (Association of Community Organizations for Reform Now) can file petitions with regulators that stop the bank’s activities in their tracks, perhaps defeating them altogether. The banks routinely buy off ACORN and other “community groups” by giving them millions of dollars as well as promising to make even more dubious loans.

In order to try to diversify the risk of these loans, the Federal Home Loan Mortgage Company (“Freddie Mac”) pioneered the “securitization” of bundles of these high-risk loans so that they could be sold on secondary markets. Such “securitization” exploded during the 1990s as a result of government regulation. As Fed Chairman Ben Bernanke himself stated in a March 30, 2007 speech entitled “The Community Reinvestment Act: Its Evolution and New Challenges” (published online by the Fed).

“Securitization of affordable housing loans expanded, as did the secondary market for these loans, in part reflecting a 1992 law that required the government-sponsored enterprises, Fannie Mae and Freddie Mac, to devote a large percentage of their activities to meeting affordable housing goals. (p. 3)”

In 1994 the Riegle-Neal Interstate Banking and Branching Efficiency Act loosened up the regulatory barriers to bank mergers. Consequently, said Bernanke, “As public scrutiny of bank merger and acquisition activity escalated, advocacy groups [like ACORN] increasingly used the public comment process to protest bank applications on CRA grounds.” In other words, there was a burst of additional legalized extortion perpetrated by the Fed and its pet “activist organizations” beginning in the mid-1990s. As a result, says Bernanke, “banks began to devote more resources to their CRA programs.” What an understatement.

Also in 1995, the US Treasury Department created the multibillion-dollar “Community Development Financial Institutions” fund to “provide banks with access [i.e., taxpayers’ dollars] to new opportunities to finance community economic development” as “encouraged” by the CRA, said the Fed chairman.

The government also “streamlined” the regulatory requirements for CRA loans in 1995, allowing — and indeed pressuring — banks to make such loans without the benefit of many traditional credit-worthiness criteria, such as the size of the mortgage payment relative to income, savings history, and even income verification! Instead, the Fed told banks that participation in a credit-counseling program, many of which are federally funded, could be used as “proof” of a low-income applicant’s ability to make his mortgage payments. In other words, federal bank regulators required banks to make bad loans based on nonexistent credit standards.

In his April 26 New York Post article on the CRA entitled “The Real Scandal,” Professor Liebowitz explains how the government’s Fannie Mae Foundation singled out one bank in particular as the role model for all other banks in America in terms of its commitment to CRA lending: Countrywide, the nation’s largest mortgage lender, had committed to $600 billion in low-income or “subprime” loans as of 2003. Today, Countrywide is essentially bankrupted and has been merged with Bank of America.

The myth that the CRA would not be harmful to bank-industry profits was hidden for years by the Fed-created housing bubble, which allowed for easy refinancing of all the bad debt. “[The] CRA increased lending and homeownership in poor communities without undermining banks’ profitability,” Robert Gordon proudly proclaims. But now that the bubble has burst, all those unqualified borrowers — whom the government calls “subprime,” as though their credit ratings are only a tiny, tiny smidgen below “prime” borrowers with the very best credit ratings — are defaulting on their mortgages in droves.

Bank profitability has been extremely “undermined,” to put it mildly. The bursting of the Fed-generated housing bubble is the reason why the CRA scam was not exposed until now, despite having been in operation for some thirty years.

CRA + FED FLOODS BANKS with PHONY PAPER + Black & Hispanic Caucus + FannieMae/FreddyMac = 70% of defaults in People of Color concentrated states of California, Nevada, Arizona and Florida.

Can we check the ethnicities of the loan officers or brokers that “forced” them to buy homes?

Again, the overlay of a European Christian society on a 3rd World mass of Blacks will NEVER, EVER WORK.

10,000 years of “culture” and every nation in Africa has a negative GDP.

No matter what the guilty Liberal tries to fund, they cannot buy IQ.

And here I was thinking that “Community Organizers” like our dear President Obama are to blame for the crisis for playing the race card so to pressure banks into giving loans to people who cannot possibly afford to repay it, i.e. Subprime Lending.

If blacks don’t get loans, it’s redlining and “racism”. Once they do and can’t pay it back, suddenly it’s not their fault that they don’t pay the loan back. You can’t win it seems

So why dont these colored people go back Africa? Oh yea, Africa is still the same sub 3rd world place of poor hungry violent dying criminal dieased perverts whose dictators kill off the few whites who try to feed them and upgrade them so they would would rather stay around whitey in America or Europe and bitch and whine about everything so they can ultimately get their free handouts including a free home.

Colored people will never change. Give them an inch they take a mile. In the end they will corrupt steal rob murder loot rape and destroy everything about the advanced white race and the biggest mystery is why white people allow this to happen to them in full view?

Colored people cannot advance on their own and must depend on government handouts. Whites have trouble keeping up with their own misfits and worrying about keeping their own race in line to have to burdened with this colored people problem and constant whining to get something free and then continue to bitch and white about that. Its nonstop and in the end we see the coloreds in control of everything tearing down the white culture and white society destroying everything turning it into rubbish all while the white allows it to happen.

We must blame Bush for all this problem of late and no one would have ever predicted he would have screwed up do badly as to allow Obama into office so prematurely. Thus in the end the white can only blame himself for allowing the inferior rich types to get in with a liberal Lincolnite bias.

What a bunch of jive tailed hog wash! I was counsel for a local bank and we had a list of all minority loan applicants. Before ANY were turned down the president had to concur in the decision and the entire loan committee had to had to agree with no negative votes. We then had to ask the applicant if he wanted to come in and address the loan committee personally. We did all this to keep the geeks from the government off our backs. We even paid two black school teachers to be on the committee. Both got loans and one defaulted. Of course we never took her to court.
Over one third of all minority loans were not repaid. We knew in advance that we were losing money but it was a cost of doing business. Some of our dead beats would go to other banks and get more money because even with a defauted loan on their records the new bank was afraid to turn them down. We also had to agree that we could not deny a loan if it was to be paid by welfare. My bank has long since been bought out. We went belly up for some reason.
Charles B. Tiffany
Kissimmee, Florida

“CRA + FED FLOODS BANKS with PHONY PAPER + Black & Hispanic Caucus + FannieMae/FreddyMac = 70% of defaults in People of Color concentrated states of California, Nevada, Arizona and Florida.”

I could kind of use to pay less in rent. It was getting outragous there.

This entire mortgage debacle would never have happened if the 20$ downpayment convention had not been lifted. Of course that would mean some people would not qualify. But the elegance of 20% down is it proves you can save, and it assures enough “skin in the game” that you wouldn’t walk away at the slightest provocation. Low-to-no downpayment means you are a renter with an option to buy.

Banks were pressured into giving loans they did not want to make by such organizations as Acorn, under the leadership of Barack Obama. If the Obamanation wants to know who caused the current economic crisis, he should just look in the mirror.

Anonymous poster wrote:

But the elegance of 20% down is it proves you can save, and it assures enough “skin in the game” that you wouldn’t walk away at the slightest provocation.

And there were/are two other benefits:

1. It’s insurance for the bank that draws the mortgage. If you don’t make as much as one payment, they can foreclose, and all they need is to sell the house for 80% of the principal of the mortgage to break even. Usually, they can.

2. It acts like a brake, or a governor, on how high a typical residential domicile can sell for. If you have to have 20% down, then there’s no way in Hades that a 3br/2ba house is going to cost $600,000 in the D.C. Suburbs. Those kind of high prices are not conducive to the working middle class. If a person can only save $20,000, then they won’t be able to buy a house for more than $100,000. The lower the values of houses that people can afford, the lower the selling prices are going to be.

I’m not familiar with HSBC but Wells Fargo certainly deserves this as one of the most enthusiastic practioners of diversity in the country. Legally, I have NO DOUBT that Wells Fargo is not guilty of any wrongdoing in these loans. Civil rights laws have forced them to make loans to bad applicants with the approved skin color. But I will not defend them at all because of their idiotic Kwanzaa displays, their overrepresentation of blacks in advertising and all the rest.

“Why would banks want to steer anyone to bad loans?

Banks are color blind. They don’t care about black or white.

They only care about the color green (when you pay them back).

“
How right you are Nick!
Of course, no one in the black community recognizes that they’re saying what we already know: Blacks make poor decisions based on poor judgement; they also refuse to recognize that there are consequences to exercising poor judgement, and try to blame everyone else (particularly Whitey) for their problems.
Were I black (god forbid!) I’d be insulted at this suggestion from a black organization purporting to speak on the behalf of blacks, but well, there it is!

A bit off topic but related to the blame whitey mentality:
Obama’s “Civilian Security Force”
I used to be a Marxist and studied Revolutionary tactics, strategy and history.
Obama’s “Civilian Security Force”, “Just as Powerful as the Military”, is not some gentle civilian “Peace Corp”. They are forming the core of a Marxist “People’s Revolutionary Militia”.
It works like this: when this or the next created “crisis” hits, and the mass of dumbed down sheeple is pyschologically indoctrinated, Obama declares Martial Law and suspends the Constitution. When the rural areas erupt into armed opposition, Obama calls out the “People’s Militia” to put down the “Counter Revolutionaries”, that is, you and me. The core of his People’s Militia will be made up mostly of “inner city youth” who allready are violent and alienated from American values. They will be given additional REAL military training, pumped up with fanatical hatred against us, “the oppressors”, weapons, and sent out to do battle with the “Counter Revolutionaries” desperately fighting in the rural areas. Let me tell you this: they won’t be following the Geneva Convention. The remaining “real” Americans, those of us who haven’t been brainwashed, will have to declare “Free American Zones” and then fight bloody guerilla battles that will be awful. There will be atrocities, starvation, possibily foreign invasion as other powers attempt to pick at the dying American corpse.
THAT is what Obama is planning for. They probably aren’t sure if it will be in a year or two or three or five…but…they are working toward it. These plans were all laid out in Bill Ayer’s living room years ago.
Be prepared. Be strong. Do not yield.

These POOR, POOR, blacks steered to bad loans, steered to this, steered to that do these people EVER accept responsibility for ANYTHING they do?
When is Mister Whitey going to quit abusing these fine people with such low (sic) verifiable records of crime, sexual disease, rape and mayhem? When you look at all blacks have done it’s hard to imagine America without them. But it might be nice to try?

To Joe B:

The “street hustler” vs. “honor tradition” analogy was perfect. What an accurate and to-the-point description.

In my job I’m required to work in and around some of the worst black communities you can imagine. Someone I work with once told me that “Blacks would eat their own if they could find a way to deep fry each other.”

The imagery of that comment is a little startling, but its intent is undeniably true. There is little to no honor in the average black “community.”

I don’t even think the back-stabbing and opportunism they tend to engage in is directed at getting ahead…sometimes they seem more interested in just getting over on the other guy, like some medieval game of “Gotcha.”

Amazing.

How exactly do you “force” someone into a “bad loan”? What did the bank do? Make them an offer they couldn’t refuse?

I would concur with the above posters who speculated that it was Black bank employees who steered the poor victims into the bad mortgages.
Those of you who are old enough to remember the Amos & Andy TV show will remember the Kingfish who was forever running scams on his own friends and neighbors.

Aside from “group” statistics, I believe what the NAACP was complaining about is that on an “individual” level, blacks were given higher loan rates than whites with similar credit histories. If this is true, it is indeed racism - just as it would be racism to give blacks loans if they as, “individuals”, had worse credit than whites….

I am sure the AP style guide for stories like these says something like:

“When writing stories comparing minority credit histories to those of whites, avoid factual terms such as ‘widely disparate.’ Instead, use more appropriate terms such as ‘similar’ ‘same’ or ‘nearly identical’ (as defined by we the AP, right? LOL!) so the reader is left with the clear impression that nonwhites are the victims.”

Wrong!
The banks for FORCED to write bad loans by Fannie.
or they were ‘racist.’

Can you see how it’s a no-win situation?

I’m tired of all blacks being dumped into the ‘street hustling’ category by white minorities whose main ‘claim to fame’ has been that they weren’t black.

My father was undercover for the NYPD and died at age 31 as a result of that work, my mother was a nurse. They bought a home, my father left an insurance that would pay the home off when he died, and money for me to go to college. I have a masters degree, and became a teacher and newspaper reporter. All this from parents who married when my mother was in nurses’ training, and my father didn’t have a job. But he got one working at the Brooklyn Navy Yard as a welder when most blacks, (during the 1940’s) couldn’t get those jobs because he studied welding in high school. And yet, I get no cooperation from the NYPD to write a story honoring him. I have written to three different mayors asking for help. I also learned from another policemen that records of black policemen were dumped into barrels and discarded.

Still, I value people for their worth, not what group they come from. This nonsense about all blacks not paying back loans is as ridiculous as my saying all serial killers and child molesters are white.

I could talk about the times I went to the bank and had to get a manager to take money out of my account because the clerk thought the amount shown was a mistake - or another time when I was asked for ID, and the customer service person decided that because I didn’t look as old as she did, my ID wasn’t valid. I could go on… but you get the point, I’m sure.

I knew someone who worked for ex Steeler Chuck Sanders (black owner). He had his whole black neighborhood getting loans for ridiculous amounts of money. Then he sold his business before the bust.
He was responsible for 9 out of 10 black people going down the drain in Pittsburgh, PA. He steered his own people wrong not any white people. He even had Jerome Bettis do commercials (for $50,000) for him to get the blacks to come get a loan.
It’s their own fault and nobody elses.

I am African-American and I agree with some you, no one forced these people to buy these homes with sub prime mortgages. But I live in the Atlanta area and most of the homes that are being foreclosed are in all areas of town, except the larger more expensive homes are in the rich white areas. Therefore, statistics show that this sub prime mortgage dilemma affected all races across the country i.e, Phoenix,AZ, the population in this city is less the 2% African-American yet is has the second highest foreclosure rate in the country. Nevertheless, these loans did not target a certain race, but thanks to the YOUR liberal government (I’m middle conservative) they are the reason for this catastrophe.