NAACP, Blacks Forced Into Subprime Loans Though Qualified For Lower Interest Mortgages

3-15-09

We’ll have to wait and see if this is perhaps an ACORN style ploy to blackmail the targets of this litigation, Wells Fargo and HSBC, or if in fact there is an issue here. I noticed in the accompanying article that representatives from the NAACP claim they have “gone through what they can get their hands on” and they suspect there may be a problem, not that they have strong evidence of such.

The NAACP filed lawsuits Friday against two of the nation’s largest mortgage lenders — HSBC and Wells Fargo — alleging “systematic, institutionalized racism” in their sub-prime lending.

“We have targeted these banks because we have gone through what we can get our hands on, and it seems like there’s a real problem here,” NAACP CEO Benjamin Jealous told CNN.

He added that the group wants “transparency. We want to see the books. We are not seeking damages, we just want them to fix the problem.”

Both companies denied the allegations.

HSBC (HBC) spokeswoman Kate Durham said the company does not comment on litigation, but she added, “We stand by our lending practices.”

Wells Fargo (WFC, Fortune 500) spokeswoman Melissa Murray issued a statement saying, “The NAACP’s allegations are totally unfounded and reckless. We have never tolerated, and will never tolerate, discrimination in any way, shape or form in any of our business practices, products, or services.”

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So here we go again. First the foreclosure mess caused by the government meddling in the business affairs of private banks, forcing them to loan to unqualified and primarily minority home buyers under threat of heavy fines and or forbidding them to expand or merge with other lending institutions and now we have the NAACP apparently coming back for round two. Since the relationship between the many Democratic members of Congress and the mortgage meltdown scandal has been revealed I really doubt the public is in much of a mood for this kind of nonsense right now. I know I’m not.

Read the rest of this cnn.com article here>>>

This entry was posted in Economy, Race and Religion, U.S..

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