Crook Alert!! Wells Fargo and HSBC Accused of Steering African Americans with Sterling Credit Ratings to Subprime Loans
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Wells Fargo and HSBC Accused by NAACP of Mortgage Discrimination
- NAACP accuses Wells Fargo and HSBC of steering well-qualified blacks into subprime loans - Los Angel
The NAACP is accusing Wells Fargo and HSBC of forcing blacks into subprime mortgages while whites with identical qualifications got lower rates.
Systematized Racism or Fair Lending?
According to today's Los Angeles Times (3-13-09) the NAACP has accused Wells Fargo and HSBC of forcing well-qualified African Americans into subprime mortgages. Class action lawsuits against the two banks were to be filed in federal court in Los Angeles on Friday.
Black home buyers have been 3 1/2 times more likely than whites to receive a subprime mortgage according to the NAACP. Wells Fargo termed the charges "reckless and totally unfounded." HSBC said it does not comment on pending litigation but "stands by its fair lending and consumer protection practices.
Similar NAACP lawsuits are pending against a dozen other subprime lenders. "This is systematized, institutional racism" according to the NAACP spokesperson.
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Comments
Yep. I'm sure tht minorities weren't the only ones shoved into subprime loans with high interest rates. Let the buyer beware and shop around before signing mortgage papers. And if the papers aren't consistent with the preliminary understanding, don't sign! From what I've read it's not uncommon for mortgage lenders to try to "jam" borrowers at the signing with added fees and higher rates or other fishhooks for the unwary.
Great hub Ralph - and so true! Although African Americans were the target, it apprear that they had no shame going after everyone else in certain income brackets and neighborhoods.
Thanks for sharing.
Is anyone surprised? Really?
More fuel for the fire of revolution. The wheel must continue to turn.
Tnx.
Holy Canoli!!! Banks are nothing but a bunch of crooks, shady and unethical, if it isn't one thing it is another.:(
Tom Rubenoff says:
10 months ago
As if things weren't bad enough. Thanks for bringing this to our attention.