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  #1  
Old 06-26-2009, 03:19 PM
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Bank Accused of Pushing Mortgage Deals on Blacks

Quote:
Originally Posted by Bank Accused of Pushing Mortgage Deals on Blacks - by MICHAEL POWELL
As she describes it, Beth Jacobson and her fellow loan officers at Wells Fargo Bank “rode the stagecoach from hell” for a decade, systematically singling out blacks in Baltimore and suburban Maryland for high-interest subprime mortgages.

These loans, Baltimore officials have claimed in a federal lawsuit against Wells Fargo, tipped hundreds of homeowners into foreclosure and cost the city tens of millions of dollars in taxes and city services.

Wells Fargo, Ms. Jacobson said in an interview, saw the black community as fertile ground for subprime mortgages, as working-class blacks were hungry to be a part of the nation’s home-owning mania. Loan officers, she said, pushed customers who could have qualified for prime loans into subprime mortgages. Another loan officer stated in an affidavit filed last week that employees had referred to blacks as “mud people” and to subprime lending as “ghetto loans.”

“We just went right after them,” said Ms. Jacobson, who is white and said she was once the bank’s top-producing subprime loan officer nationally. “Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches, because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans.”

Ms. Jacobson’s account and that of the other loan officer who gave an affidavit, Tony Paschal, both of whom have left Wells Fargo, provide the first detailed accusations of deliberate racial steering into subprimes by one of the nation’s top banks.

The toll taken by such policies, Baltimore officials argue, is terrible. Data released by the city as part of the suit last week show that more than half the properties subject to foreclosure on a Wells Fargo loan from 2005 to 2008 now stand vacant. And 71 percent of those are in predominantly black neighborhoods.
The rest of the article is here.
http://www.nytimes.com/2009/06/07/us...timore.html?hp

A BBC report and interview with Beth Jacobson on Newsnight is here, but it is only available to UK users.
http://bbc.co.uk/i/ldvcv/?t=36m
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  #2  
Old 06-27-2009, 09:33 AM
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Sorry, we interrupt this thread for a public service announcement.

Unfortunately, it seems people can't read the rest of that NYTimes article unless they register. Following the link just takes you to the NYTimes login page.

I did register, because I was irritated at not having been able to read a few articles people have linked to. But oh woe is me! My sins have found me out!

Because I was irritated at having to register, I put my username down as ... er, well, I don't think I'd better say. My nemesis came in the form of a message that came up on screen when I tried to finish registering that said there had been an error and the administrators had been notified. Oh the guilt!

Turns out my privacy settings were too high so they blocked their cookie from barging its way onto my computer. So I lowered them temporarily and registered again and it worked that time.

But now, every time a page of theirs comes up on my screen, that username appears at the top. Oh woe is me, if anyone ever sees it. Thankfully, it's come up all in lower case, so it isn't so obvious what it says, since it's written as one word, and funnily enough, the middle letters make a different word altogether.

But now I am repentant. I deserve a spanking. Let that be a warning to you all!

And now, back to your regularly-scheduled thread topic.
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  #3  
Old 06-28-2009, 07:56 PM
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What was the name of the Bill that encouraged, even demanded, that lower income people be given the "opportunity" to purchase a home? Unintended consequences on steroids.
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  #4  
Old 06-30-2009, 04:00 PM
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That bloody t'internet! Tut!

Quote:
Originally Posted by Meme Virus View Post
Sorry, we interrupt this thread for a public service announcement.

Unfortunately, it seems people can't read the rest of that NYTimes article unless they register. Following the link just takes you to the NYTimes login page.

I did register, because I was irritated at not having been able to read a few articles people have linked to. But oh woe is me! My sins have found me out!

Because I was irritated at having to register, I put my username down as ... er, well, I don't think I'd better say. My nemesis came in the form of a message that came up on screen when I tried to finish registering that said there had been an error and the administrators had been notified. Oh the guilt!

Turns out my privacy settings were too high so they blocked their cookie from barging its way onto my computer. So I lowered them temporarily and registered again and it worked that time.

But now, every time a page of theirs comes up on my screen, that username appears at the top. Oh woe is me, if anyone ever sees it. Thankfully, it's come up all in lower case, so it isn't so obvious what it says, since it's written as one word, and funnily enough, the middle letters make a different word altogether.

But now I am repentant. I deserve a spanking. Let that be a warning to you all!

And now, back to your regularly-scheduled thread topic.
Sorry Meme, the link works fine for me, so I'll copy and paste the article just in case anyone else comes across the same problem.

Quote:
Originally Posted by Bank Accused of Pushing Mortgage Deals on Blacks
As she describes it, Beth Jacobson and her fellow loan officers at Wells Fargo Bank “rode the stagecoach from hell” for a decade, systematically singling out blacks in Baltimore and suburban Maryland for high-interest subprime mortgages.

These loans, Baltimore officials have claimed in a federal lawsuit against Wells Fargo, tipped hundreds of homeowners into foreclosure and cost the city tens of millions of dollars in taxes and city services.

Wells Fargo, Ms. Jacobson said in an interview, saw the black community as fertile ground for subprime mortgages, as working-class blacks were hungry to be a part of the nation’s home-owning mania. Loan officers, she said, pushed customers who could have qualified for prime loans into subprime mortgages. Another loan officer stated in an affidavit filed last week that employees had referred to blacks as “mud people” and to subprime lending as “ghetto loans.”

“We just went right after them,” said Ms. Jacobson, who is white and said she was once the bank’s top-producing subprime loan officer nationally. “Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches, because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans.”

Ms. Jacobson’s account and that of the other loan officer who gave an affidavit, Tony Paschal, both of whom have left Wells Fargo, provide the first detailed accusations of deliberate racial steering into subprimes by one of the nation’s top banks.

The toll taken by such policies, Baltimore officials argue, is terrible. Data released by the city as part of the suit last week show that more than half the properties subject to foreclosure on a Wells Fargo loan from 2005 to 2008 now stand vacant. And 71 percent of those are in predominantly black neighborhoods.

Judge Benson E. Legg of Federal District Court had asked the city to file the additional paperwork and has not decided whether the lawsuit can go forward.

Wells Fargo officials have declined detailed interviews since Baltimore filed suit in January 2008. In an e-mail statement on Friday, a spokesman said that only 1 percent of the city’s 33,000 foreclosures have come on Wells Fargo mortgages.

“We have worked extremely hard to make homeownership possible for more African-American borrowers,” wrote Kevin Waetke, a spokesman for Wells Fargo Home Mortgage. “We absolutely do not tolerate team members treating our customers or others disrespectfully or unfairly, or who violate our ethics and lending practices.”

City and state officials across the nation have investigated and sometimes sued Wells Fargo over its practices. The Illinois attorney general has investigated whether Wells Fargo Financial violated fair lending and civil rights laws by steering black and Latino homeowners into high-interest loans. New York’s attorney general, Andrew M. Cuomo, raised similar questions about the lending practices of Wells Fargo, JPMorgan Chase and Citigroup, among other banks.

The N.A.A.C.P. has filed a class-action lawsuit charging systematic racial discrimination by more than a dozen banks, including Wells Fargo.

At the heart of such charges is reverse redlining, specifically marketing the most expensive and onerous loan products to black customers.

The New York Times, in a recent analysis of mortgage lending in New York City, found that black households making more than $68,000 a year were nearly five times as likely to hold high-interest subprime mortgages as whites of similar or even lower incomes. (The disparity was greater for Wells Fargo borrowers, as 2 percent of whites in that income group hold subprime loans and 16.1 percent of blacks.)

“We’ve known that African-Americans and Latinos are getting subprime loans while whites of the same credit profile are getting the lower-cost loans,” said Eric Halperin, director of the Washington office of the Center for Responsible Lending. “The question has been why, and the gory details of this complaint may provide an answer.”

The affidavits of the two loan officers seem to bolster Baltimore’s lawsuit. Mr. Paschal, who is black and worked as a loan officer in Wells Fargo’s office in Annandale, Va., from 1997 to 2007, offers a sort of primer on Wells Fargo’s subprime marketing strategy by race.

In 2001, he states in his affidavit, Wells Fargo created a unit in the mid-Atlantic region to push expensive refinancing loans on black customers, particularly those living in Baltimore, southeast Washington and Prince George’s County, Md.

------------------Page 2------------------

“They referred to subprime loans made in minority communities as ghetto loans and minority customers as ‘those people have bad credit’, ‘those people don’t pay their bills’ and ‘mud people,’ ” Mr. Paschal said in his affidavit.

He said a bank office in Silver Spring, Md., had an “affinity group marketing” section, which hired blacks to call on African-American churches.

“The company put ‘bounties’ on minority borrowers,” Mr. Paschal said. “By this I mean that loan officers received cash incentives to aggressively market subprime loans in minority communities.”

Both loan officers said the bank had given bonuses to loan officers who referred borrowers who should have qualified for a prime loan to the subprime division. Ms. Jacobson said that she made $700,000 one year and that the company flew her and other subprime officers to resorts across the country.

“I used to joke that ‘I’ll pay for your kids to go to private school if you give me clients,’ ” Ms. Jacobson said in the interview.

Loan officers employed other methods to steer clients into subprime loans, according to the affidavits. Some officers told the underwriting department that their clients, even those with good credit scores, had not wanted to provide income documentation.

“By doing this, the loan flipped from prime to subprime,” Ms. Jacobson said. “But there was no need for that; many of these clients had W2 forms.”

Other times, she said, loan officers cut and pasted credit reports from one applicant onto the application of another customer.

These practices took a great toll on customers. For a homeowner taking out a $165,000 mortgage, a difference of three percentage points in the loan rate — a typical spread between conventional and subprime loans — adds more than $100,000 in interest payments.

The accusations contained in the affidavits, which were given to Relman & Dane, a civil rights law firm working with the City of Baltimore, have not drawn a specific response from Wells Fargo. But city officials say the conclusion is clear.

“They confirm our worst fears: that this is not just a case based on a review of numbers and a statistical analysis,” said the city solicitor, George Nilson. “You don’t have to scratch your head and wonder if maybe this was just an accident. The behavior is pretty explicit.”

Both sides expect to appear in court at a hearing in the case in late June.
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Cheney...
"I went down into what's call a PEOC, the Presidential Emergency Operations Center...But when I arrived there within a short order, we had word the Pentagon's been hit."
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  #5  
Old 07-11-2009, 03:05 PM
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As bobbo implied - this was merely the expression of clearly stated governmental policy. Maybe folks should stop seeing african americans as idiots - effectively slaves - too stupid and irresponsbile to function in society without a benevolent overseer. They should function as any citizen - they screw up - they take the fall.
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Old 07-11-2009, 03:22 PM
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Here here old boy! Absolutely! And isn't it a terrible waste of bandwidth and a stupid and patronizing display of paternalism that such pages as this one with lots of links to information and warnings about how to avoid scams exists! You get scammed, it's your responsibility!! You get yourself into a mess, it's your own fault, and no one should have to help you out of it. Why should we punish the scammers?

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  #7  
Old 07-14-2009, 07:47 PM
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Chop the fingers off the spammers and the scammers and the hackers.
Or at least fit their hands with a locked mitten - a more modern reversable method -
for at least 1 year.
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Old 12-11-2009, 01:26 PM
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Bank Accused of Pushing Mortgage Deals on Blacks

Of course, it all comes back to those fuckin black people. Heaven forbid anybody in power is responsible for anything. Poor black people, the root of all our nations problems.
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  #9  
Old 12-11-2009, 07:10 PM
Bobbo Bobbo is offline
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People are the problem. As Saddam said: if there is no man, there is no problem.

There are no poor children, there are only poor parents. Am I part of the solution or part of the problem when I have children with no reasonable expectation of being able to provide for them? Do I really have the right to expect you to support my children? There is not one woman in the world who doesn't know the right answer to those questions.
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Old 12-11-2009, 09:47 PM
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Stalin said that--Saddam copied him.
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Old 12-11-2009, 10:07 PM
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Not to hound you, Ben, but a semicolon should have been used instead of a dash, since you were separating two independent clauses.

I swear this is the last time I pull this shit. :-)
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Old 12-12-2009, 12:56 PM
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I'm well pleased that the dash is correct; thank you for your astute notification that my colon and semicolon usage could do with some work.

I'm glad I don't mind being wrong.
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Old 12-14-2009, 03:24 PM
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Quote:
Originally Posted by Ben Burkhill View Post
Stalin said that--Saddam copied him.
I think I have been corrected on that before. Now why can't I remember it?

I caught "Expelled" with Ben Stein the other night. (I don't pay to watch anything, or go to movie theaters. I see it when it comes on the tube.) Anyway, behind or not, I was interested in his connection of Darwinism to eugenics.

The thread of a particular individual presenting a problem runs all through Darwinism, genetics, eugenics, and the social philosophies of Machiavelli, Stalin, Saddam and indeed even the Bible and Islam. Common law everywhere holds the individual accountable.

What puzzles me the most is why we humans set our species above all others. Could it be as simple as species prejudice? We refuse to accept that our herd needs management while we manage, or try to manage, not just domestic herds but "wild" populations as well.

Look at the efforts proposed to manage the environment for the sake of the Polar Bear, requiring billions of dollars and unprecedented international cooperation. And we have done similar things, on a much smaller scale, to manage almost all the populations of migrating birds, fish and land mammals, and everything from whales to blind cave dwelling salamanders.

I suppose one could make a case that we cannot manage our own population because the creatures we would manage can complain, and vote. I think it is obvious that the "right" to procreate without restraint will lead eventually to our extinction and unfortunately to the extinction of many other species as well. Just another example where the will of the people is the enemy of the people.
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Old 04-19-2010, 03:16 AM
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Quote:
Other times, she said, loan officers cut and pasted credit reports from one applicant onto the application of another customer.
Quote:
“The company put ‘bounties’ on minority borrowers,” Mr. Paschal said. “By this I mean that loan officers received cash incentives to aggressively market subprime loans in minority communities.”
The loan officers received cash incentives and worshiped that ($$$). They forgot about living in a country where we are not supposed to discriminate against people with different racial and cultural backgrounds. What were they lost in school when we learned not to be against others for their race, creed, or color? I suppose they just preferred pocketing the money and going home to the wife and children. The loan officers should have found another company to work for when they found out their bosses were not on the up and up.They probably were brought up to believe that having racial preferences for whites ONLY could be applicable still with a black president of the United States. They still don't get it. They are racially challenged...to say the least. Now they'll probably pay and enormous fine and go to jail as an example for the rest of the people that think like those loan officers and their bosses. In this case I really do like snitches with affidavits. The bosses should get larger fines naturally and more time in prison.

Now the pasting of other people's credit reports on false owners is just down right corrupt beyond reason and not to mention stupid!

The rest is extremely interesting to read because we do not live in heaven.We need to mark off what is corrupted. So it doesn't mess up the lives of good hard-working people.Well it's a good idea to not buy a house with Wells-Fargo. I think they should be exploited to the max and the hearing should go on CNN!
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