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Crook Alert!! Wells Fargo and HSBC Accused of Steering African Americans with Sterling Credit Ratings to Subprime Loans
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.