Uncategorized
NAACP Sues Bevy of Mortgage Lenders, Alleges Racial Discrimination
By: PAUL JACKSON
July 12, 2007
From the Associated Press, via Forbes:
The NAACP sued a dozen mortgage lenders on Wednesday, claiming the companies discriminated against blacks by steering them into higher-interest, subprime loans while giving more favorable loan terms to white borrowers.
The lawsuit, which seeks class-action status, was filed in U.S. District Court in Los Angeles.
It demands a court order barring the lenders from discriminating against blacks and compelling them to comply with fair housing and credit laws.
Among the defendants named in the suit are Ameriquest Mortgage Co., Citigroup Inc., HSBC Finance Corp. and Washington Mutual Inc.
Other lenders named are Fremont Investment & Loan, Option One, WMC Mortgage, Countrywide, Long Beach Mortgage, BNC Mortgage, Accredited Home Lenders, Encore Credit, Bear Stearns First Financial. (There also seems to be some question as to how many lenders were named in the suit, with a scan of major media stories listing anywhere from 11 to 14 lenders.)
The case seems to be built upon data from the Center for Responsible Lending and the National Community Reinvestment Coalition. And FWIW, I haven’t heard from any sources yet whether or not this case would appear to have any legs or not.
Print This Article
recent stories by department
Origination/Lending
Secondary Market/Investors
Get your HW Fix
Join nearly 10,000 bold subscribers who already get our daily email delivered to their inbox -- it's free, and a great way to ensure you don't miss something.
Events
2009 Dec 09 -- 2009 Dec 10
RMBS: Assessing Value and Risk
This two-day course in New York City will equip market participants with the knowledge and skills to evaluate prime, Alt-A and subprime RMBS portfolios in order to assess their value and understand inherent risks. For more information, visit www.fitchratings.com.
2010 Jan 13 -- 2010 Jan 14
2010 Collection Technology Summit
The Collection Technology Summit is the first industry event to focus solely on collections and its associated technologies and continues to draw top executives from the nation's most prominent institutions. The Collection Technology Summit, where innovation happens. For more information, visit www.collectiontechnology.net
