From Democracynow.org:
In economic news, the Justice Department has launched an investigation into several alleged cases of discriminatory practices in mortgage lending. The National Community Reinvestment Coalition recently found that African Americans were twice as likely as white applicants to receive loans with expensive, above-market rates. The investigation follows a class action lawsuit from the NAACP accusing subprime mortgage lenders of institutionalized, systematic racism. Lenders named in the suit include Wells Fargo, Citigroup and Washington Mutual.
1 comment:
More and more foreclosures are due to bad lending, lending people more money than they could afford, lending money to people who have some questionable credit issues in the past, lending people money that were not even eligible for a Discover card. The more foreclosures the more it drives down the price of the housing market, because foreclosed homes sell for what is owed and does not take into consideration appreciation etc. The more foreclosures in your neighborhood the lower price you will get for your home.
A lot of these bad lendors are going to be out of business. There are also new laws that E.g. Citigroup are trying to get through, to stop this bad lending.
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