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Regulators Kept Quiet as Subprime Lenders Targeted Minorities

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TigerD

Senior Member

“Low and moderate-income people get one shot at home ownership,” Alphonso Jackson, secretary of Housing and Urban Development, said in an interview in Washington. “And if they don't make it work, they don't get a second shot.”


by Mike Bevel,
insideARM.com
June 13, 2007

The more information that is released concerning the subprime mortgage paradigm that pervaded most of the past few year’s housing boom, the uglier it all looks.

A recent report revealed that blacks and Hispanics are more likely than whites to be saddled with high-priced home loans. And the U.S. agencies that supervise the more than 8,000 banks haven't censured any of them for violating fair-lending laws.

rest of the story
http://www.insidearm.com/index.cfm?objectID=25B56DAC-FD58-C4D6-49C2A9F1BC7AB245
 


StephenH

Member
Sad

DebtCollector',

It is sad that they targeted people of certain races with higher priced loans. I beleive that this is wrong and discriminatory lending practices. I am not saying that Subprime type loans should not exist or be an option for some people who have had credit problems in the past and have been able to get on their feet again.

I beleive that the subprime failures existed because people could not handle the rising rates of adjustable rate subprime loans, as well as the market troubles. I personally think that all subprime loans should be fixed rate, and people should be qualified at the rate they will be paying for the entire loan. I also beleive thatsubprime loan companies should demand the customer show a backup plan or purchase mortgage insurance.

Stephen
 

TigerD

Senior Member
I see the problem as follows:

The GO-GO years of the 80s with crazy money in real estate and stocks, lead to the Ga Ga years of the internet boom and even crazier real estate prices and that has lead us to now -- the WTF years, where we wake up and realize that a cheaply built bungalow isn't worth $2.5 million no matter it is.

DC
 

FlyingRon

Senior Member
Can't say they targetted minorities...they pretty much targetted anybody who wanted more loan than they could legitimately qualify for. It's the junk bond of the new century.
 

Just Blue

Senior Member
Can't say they targetted minorities...they pretty much targetted anybody who wanted more loan than they could legitimately qualify for. It's the junk bond of the new century.
Yes...Elderly, disabled and the financially desperate! I worked for a short time at Conseco...OMG! The things that went on there were unbelievable! When I left I told my boss that their company policy and my ethics were clashing...
 

FlyingRon

Senior Member
The financially challenged are not a minority.

If you are going to equate being financially challenged with any
minority group, you better go back and do an ethics check on
your prejudice.
 

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