Wells Fargo Sub Prime Discrimination

Discussion in 'Politics' started by ClosedCaption, Jul 18, 2012.

  1. ClosedCaption
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    ClosedCaption Diamond Member

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    Wells Fargo agrees to $175 million settlement in pricing discrimination suit - Baltimore Sun


    While people try to blame the Minorities by claiming they were just being greedy wanting homes they couldnt afford. The facts tell a different or at least alternative story that gets ignored
     
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  2. ClosedCaption
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    ClosedCaption Diamond Member

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    I know..ignore it and it will cease to exist
     
  3. g5000
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    g5000 Diamond Member

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    Whites with high credit scores were also pushed into subprime loans. The profits from a subprime loan are higher.

    I have an over 800 credit rating and a broker tried to push me into a subprime loan so toxic that I actually called a friend in the media to investigate what was going on in the lending business. Too bad she did not understand the ins and outs of mortgage financing or she would have been years ahead of the curve on reporting about the coming crash. Instead, she ignored what I was telling her.

    I wish I could see the evidence that was presented which suggests this was done to blacks more than whites. I am sure a lot of math and statistics were involved in "proving" this was the case, but I don't have much faith in juries being able to understand when they are being bullshitted.

    I think this was regular practice across the board, not just with minorities. All you have to do is drive around town in the white neighborhoods and look at all the foreclosures and For Sale signs to see the derivatives bubble was color-blind when it came to creating toxic assets.

    In any case, this is just one more nail in the already dead CRA meme's coffin.
     
    Last edited: Jul 18, 2012
  4. ClosedCaption
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    ClosedCaption Diamond Member

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    Wells Fargo didnt think so...These actions possibly destroyed the economic progress many minorities have made over the years and viola! Wells throws money at it and says "my bad" with an even bigger bag of money slung over their shoulder
     
  5. Wacky Quacky
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    Wacky Quacky Silver Member

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    Buying a home isn't rocket science, but it is a large enough of a purchase and investment to warrant researching a little bit before doing it. If you're not rich then the first words out of your mouth when you walk into a realtor's office should be "30 year fixed".

    People are going to continue to be taken advantage of more and more. A few lawsuits or laws won't change that. Businesses know that americans are becoming less and less knowledgeable about simple finances, and they're using that to their advantage. Does that mean businesses are to blame? Somewhat. More of the blame lies with an ever growing populace of apathetic and ignorant people.

    Don't want to be taken advantage of? Do some research before making major financial decisions, it's that easy. Google is your friend.
     
  6. ClosedCaption
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    ClosedCaption Diamond Member

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    If you researched a bit you would know that you dont go to a realtor for a loan. That is done by a lender.

    The lender never told some of these people that they could qualify for a better loan. You're right, average citizens should know what lenders know except there is no way to know that unless you are a lender in most cases.
     
  7. Wacky Quacky
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    Wacky Quacky Silver Member

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    Then they should have went to a different lender. If that lender said the same thing then obviously they can't afford a home. If you can't qualify for a 30 year fixed then how in hell do think you'll afford an ARM?
     
  8. g5000
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    g5000 Diamond Member

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    You can put a person in a bigger house with a subprime loan than you can with a 30-year fixed loan. A bigger house means a bigger loan which means bigger profits.

    And the bigger your paycheck, the bigger subprime loan you could be put into. That's why the primary target was the middle class, not minorities.

    The subprime lending business was also pushed to help revitalize the lagging refinancing industry. Get someone into a loan that resets in three years and they have to refinance. Mo' money! Mo' money!

    June 2003: Not exactly prime: the secondary market for loans not in prime condition is growing.



    There's the if-we-don't-do-it-the-other-guy-will mentality right there that fed the whole bubble in that last sentence.


    Option ARM & Fixed Rate Cash Flow Mortgage



    http://www.nytimes.com/2006/07/15/business/15money.htm


    You may want to bookmark this post for the next time some idiot bongwater guzzler says, "It wuz da CRA!"
     
  9. eflatminor
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    eflatminor Classical Liberal

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    Nobody's blaming minorities for the housing meltdown. We're blaming government regulations, the federal reserve, tax laws, loopholes, etc...but not minorities. Sorry if the truth doesn't fit your agenda.
     
  10. Moonglow
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    Moonglow Diamond Member

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    you left out the bankers, they are part of the problem
     

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