Mortgage lending discrimination lawsuit moves forwardBy Yvonne Wenger (Contact)
The Post and Courier
Wednesday, July 2, 2008
COLUMBIA — South Carolina's NAACP leaders gathered Wednesday to demand some of the country's top mortgage lenders stop what the organization perceives to be discriminatory lending practices. A class-action lawsuit filed by the National Association for the Advancement of Colored People is set to move forward next month in federal court. The suit against 17 major lenders asserts that black borrowers β with the same qualification as white counterparts β were given loans with high interest rates because of their race. Blacks are estimated to be between 31 percent and 34 percent more likely to be put in a higher cost mortgage than similar white borrowers, according to data from 2004 to 2006 that the NAACP collected under the Home Mortgage Disclosure Act. A study released last year found that the Charleston area had the greatest difference nationwide between what minorities and whites pay for mortgage loans. The National Community Reinvestment Coalition report based its findings on data collected by the U.S. Federal Reserve. A hotline has been established for borrowers who feel they have been discriminated against: 410-580-5777. "We urge anyone who feels like they have been discriminated against to call," said Dwight James, executive director of the state NAACP Conference. The lawsuit was filed on behalf of borrowers across the country, including some in South Carolina, James said. Lenders in South Carolina defended their policies and practices as fair and just. |
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Comments
This article has 2 comment(s)
Posted by moonpie on July 2, 2008 at 8:06 p.m. (Suggest removal)
PLEEEEEEEEEEASE!
How about read the fine print. Or hire a freaking lawyer to do it for you. They're in the money making business just like car dealers and anyone else that will sell you something on credit.
Posted by buff_o_rilla on July 2, 2008 at 11:45 p.m. (Suggest removal)
I wonder if blacks are more likely to default on their loans than white borrowers are. Does anyone have a statistic for that? Your right moonpie, If they dont understand what they are getting into and they accept the terms of the loans then they need to educate themselves or get someone to educate them. But just like all things their actions and circumstances are always someone elses fault. If Bill Clinton hadnt passed legistlation to make loans easier for minorities we wouldnt be in the mortgage mess we are in.