Association files civil rights complaint on behalf of homebuyers
December 01, 2008 03:30PMThe National Community Reinvestment Coalition has filed a civil rights complaint with the U.S. Department of Housing and Urban Development against two Wall Street ratings agencies. The complaint alleges that Fitch Ratings and Moody's Investor Services' ratings of subprime mortgage bonds disproportionately harmed African-American and Latino homebuyers and contributed to the foreclosure crisis. The complaint says the companies "knew or should have known" that subprime loans were disproportionately marketed to minority borrowers and that the loans "were designed to fail" because the payment terms were unfair and borrowers did not have enough income to meet the loan terms. Because of the foreclosure crisis, $164 to $200 billion in wealth will be lost from minority communities, according to the coalition. TRD
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments
Anonymous
I see the suits coming to the broker firms soon...
Comment #1 Posted By: Anonymous 12/01/08
Anonymous
This is the most assanine thing I have ever read. While the ratings agencies are certainly at fault for failing to rate this garbage properly, they did not make the loans. When are the ppl who took the money going to take reponsibility for their actions.
Comment #2 Posted By: Anonymous 12/01/08
Anonymous
Lending money to stupid people is not against the law. A fool and his money are soon parted.
Comment #3 Posted By: Anonymous 12/01/08
Anonymous
Of course NCRC and their ilk have spent 30 years accusing lenders of institutional racism in not extending credit to minority borrowers with poor credit histories. Now that credit has been extended and the predictable debacle has ensued, NCRC demands that every delinquent mortgager be allowed to remain in homes which they could never afford, and have the rest of us foot the bill.
Comment #4 Posted By: Anonymous 12/01/08
Anonymous
Mark My Word. Sometime durring the Obama game, the USA will be adding an S to it's name... USSA. United States of Socialist America.
Comment #5 Posted By: Anonymous 12/01/08
Anonymous
Finally 6 comments in a row that agree with each other!!! Let them sue ACORN, for shaking down lenders who didnt lend to minority owners. On a similar note, now that Obama is President can we end Affirmative Action, theres obviously no need for it anymore. My kids deserve a fair chance to get into college too.
Comment #6 Posted By: Anonymous 12/02/08
the black eagle
that's pathetic. it is time for us minorities to stop playing the victim card. we will never become upwardly mobile until we stop playing the victim and blaming everyone but ourselves.
Comment #7 Posted By: the black eagle 01/05/09