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The housing lawsuit wasn't about "forcing banks to make loans" or lowering requirements - that's the lie. It?

...was proven in a court of law that banks were denying QUALIFIED borrowers, with the same credits scores, being denied loans because they lived in redlined minority areas.

It's all a matter of public record - do you think fake right wing news will ever admit that?

Update:

Boober, then why were banks THEMSELVES giving 100% loans, against government recommendations?

That was predatory lending.

Yet another thing Fox News has wiped from your memories like chalk on a chalkboard.

Update 2:

greg and nerdy - bullsh**, no it wasn't "reported" anywhere but on fake right wing Fox News, who lied their as**s off like always.

It's a matter of public record! That's what the lawsuit was about! Descrimination in lending and people in inner city areas not getting loans when they WERE QUALIFIED!!!

Update 3:

OK, here's the text from the FOX NEWS article!

"Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages."

Update 4:

Read it yourself.

Case Name

Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance

Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011

State/Territory Illinois

9 Answers

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  • 8 years ago
    Favorite Answer

    Nothing in the CRA language mandates that banks make unprofitable loans. Preventing redlining is the intent of the law, which is where a qualified borrow is denied because of the area of town they live in, as you indicated.

    Actual oversight text in the law:

    {SEC. 804. (a) IN GENERAL.--In connection with its examination of a financial institution, the appropriate Federal financial supervisory agency shall--

    (1) assess the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution}

    The financial crisis, on the other hand, was caused by unregulated mortgage originators making liar loans, converting the loans into opaque securities fraudulently rated AAA (as a result of the conflict of interest in the ratings agencies), and then selling them to suckers.

    Another free-market failure.

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  • sarah
    Lv 4
    4 years ago

    There may be a brand new learn I just read on Sciencedaily that there are variations in data processing within the brains of liberals vs conservatives. Conservatives do not respond to interpersonal cues. The experiment involved flashing a face on a laptop display with the eyes on the face pointing a special path at the same time an additional blip regarded on the reveal - either the place the eyes were pointing, or someplace else. Then the eyes of the experiment subject - a liberal or conservative - decided by way of questionaire and psychologic profiling - had been recorded and the responses quanitified and in comparison. Conservatives gave no response to the on display cues, whereas liberals have been very attentive to the on display cues. The conclusions are that ideology can be a perform of genetics, and that there are differences in mind processing between these 2 companies of individuals. It was once theorized that conservatives are much less in tune to outside stimulous for the reason that of their independent man or woman mind-set and as a result are relient best on their own inner techniques. Liberals have an outward view and tend to don't forget the input of others round them, and hence were more reliant on outward process. It all means that Liberals price group strategies to issues - Conservatives only value their own input into situation solving.

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  • Anonymous
    8 years ago

    No that is not true. They gave loans to under qualified people and gave government backing so the banks wouldn't be so nervous about it.

    NY TIMES 1999

    In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

    The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

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  • wtinc
    Lv 7
    8 years ago

    So you would invest your money to build a house in the war zones of Detroit, or Chicago knowing full well if the person defaults you will have to sell the house on the open market to whom!

    there is a lot more to lending just because someone wants it and has a good credit score like can you resale it in case of default.

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  • Anonymous
    8 years ago

    Bullshit.. I've worked for banks for 15 years. They don't DENY profits because of someone's skin color, they deny loans because of the persons inability to pay. It's all OPINION of the government.

    Faced with massive fines, what is the bank to do? Watch this video Joe.

    BACKGROUND Info on Clintons "National Homeownership Strategy"

    http://archives.clintonpresidentialcenter.org/?u=1...

    http://www.presidency.ucsb.edu/ws/index.php?pid=51...

    Clinton HUD Secretary 1998 (moments after announcing a record high discrimination settlement) Video Link Below

    ""To take a greater risk on these mortgages...yes. To give families mortgages they who they would not have given otherwise?...yes."

    Mr. Cuomo is then asked if this people in this group could have gotten the loans at all in the first place. In a telling response, he answers:

    "They would not have qualified, but for this AFFIRMATIVE ACTION on the part of the bank...yes."

    Mr. Cuomo then confirms for a reporter that the affirmative action is indeed for minorities and that he expects the default rate to be higher than the rest of the portfolio:

    "It is...by income it is mostly by minorities...yes."

    TRANSLATION GIVE LOANS TO PEOPLE WHO CAN'T PAY THEM OR BE FINED FOR DISCRIMINATION !

    VIDEO HERE

    http://www.youtube.com/watch?v=ivmL-lXNy64

    Youtube thumbnail

    NOt about lowering requirement ? Read this.

    Fannie Mae Eases Credit To Aid Mortgage Lending

    WASHINGTON, Sept. 29, 1999 — In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

    The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.

    ***** Fannie Mae officials say they hope to make it a nationwide program by next spring. ***

    http://www.nytimes.com/1999/09/30/business/fannie-...

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  • Boober
    Lv 6
    8 years ago

    Nobody should ever be able to get a 90% loan on a house. That's just asking for trouble.

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  • Anonymous
    8 years ago

    Joe. What's up, dude? Right wing news? Come on. It was reported, right? Or you wouldn't know. If you trace it back, it was a Demoncrat president & Demoncrat Congress that gave the wink.

    Source(s): Vote Republican
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  • Anonymous
    8 years ago

    Do you have a source?

    I've read a lot of your questions, many of them claim things that can be easily contradicted with actual figures.

    So please source your claim.

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  • Hobbit
    Lv 7
    8 years ago

    no -- the conservative racists will ot admit it.

    This is why there is no point in trying to "work on a bipartisan basi" with conservatives. They are lying trash. And we need to drop the rhetoric about "civility." They are the source of the polarization in American politics and we need to put the blame where it belongs -- on their doorstep.

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