Bank of America ordered to pay $350million for discrimnating...

[Toma]

Cool, and apparently, the victims are gonna get some cash out of the settlement,

http://www.msnbc.msn.com/id/45755576/ns/business-us_business/t/bofa-million-settlement-us-over-bias-case/from/toolbar#.TvJ1ejX--mA

[kevie88]

Lawyers get 100 million. Mom and pop minority get $ 200.

[Merritt]

So they decided to pay it off instead of going to jail?

I guess money is above the law, after all.

[davidI]

I'm really curious if this was real discrimination as in "you're black so I'm charging you an extra 2 basis points" or if blacks and hispanics were charged more due to non-race factors such as income and employment record and it's being played out to be a race thing?

I don't have hard facts in front of me, but I would think that statistically (and generally), whites have better employment / salaries to back up their applications. I'm not trying to be stereotypical...I have lots of black and hispanic friends who are very well off....but I've also spent enough time in California to see the financial pools each demographic generally fits in...Palm Srpings vs. Indio, for example...

[ZenOps]

Meh.

You sort of get used to it I guess. Like - if you want your neighborhood to be quieter, as a black man you complain to people like Rob Anders that there are not enough parties and all-night festivals.

Sure enough, after a couple of decades you tend to be able to pick out the people that do the exact opposite of what you would like them to do. Five-year old reverse psychology works great on some politicians when you are trying to get things done.

It also works if you constantly complain - that you hate taking out the garbage (but could otherwise care less) You look like a hero when the lady friend gets you to do it. Same with employment.

[Tik-Tok]

Originally posted by davidI
I'm really curious if this was real discrimination as in "you're black so I'm charging you an extra 2 basis points" or if blacks and hispanics were charged more due to non-race factors such as income and employment record and it's being played out to be a race thing?


I believe it's more of a "Consumer is too stupid to do his research are compare products".

This is the key right here.


Minorities were steered to more expensive subprime loans even though they were qualified for traditional mortgage rates. Justice Department officials said it was the largest residential discrimination settlement in U.S. history.

"The victims had no idea they were being victimized. They were thrilled to have gotten a loan and realize the American dream,"

In other words, no one forced them to take those mortgages. They could have applied at a number of banks/institutions, or used a Mortgage Broker. Pretty sure plenty of white people were also "steered" towards a more expensive product as well, as is the norm of any company to try and upsell it's product.

[clem24]

Originally posted by Tik-Tok
Pretty sure plenty of white people were also "steered" towards a more expensive product as well, as is the norm of any company to try and upsell it's product.

That's right.. White people got fucked over cause they can't play the race card like minorities can. All they can do is protest... Actually wait.. They can't even do that either! :rofl:

[Sugarphreak]

...

[davidI]

Originally posted by Tik-Tok


I believe it's more of a "Consumer is too stupid to do his research are compare products".

This is the key right here.



I agree with you, but if they were being offered different products solely based on race (which I doubt they were) then I understand the discrimination.

No doubt people of all races signed up for things they shouldn't have.

[Mar]

Hi, I'm copy and paste, have we met?



NEW YORK — Bank of America Corp's Countrywide Financial unit agreed on Wednesday to pay a record $335 million to settle civil charges that it discriminated against minority homebuyers, a historic settlement for the Obama administration in the wake of the subprime mortgage morass.
As the financial crisis was building in 2008, Bank of America bought Countrywide, which specialized in so-called subprime mortgages, focusing on loans to those with lower credit ratings and charging them higher interest rates.
The settlement covers conduct between 2004 and 2008 before the acquisition by Bank of America, and involves a range of alleged wrongdoing including charging African-Americans and Hispanics higher interest rates and fees and steering some to more expensive subprime mortgages.


"In today’s settlement with Countrywide Financial Corporation, we resolved the government’s allegations that Countrywide and its subsidiaries – which are now owned by Bank of America – engaged in discriminatory mortgage lending practices against more than 200,000 qualified African-American and Hispanic borrowers from 2004 through 2008," U.S. Attorney General Eric Holder said in a statement.
Related: Victims in mortgage case could get thousands
Holder said that the investigation found a widespread pattern of discrimination against more than 200,000 people in more than 180 geographic markets across 41 states and the District of Columbia.
"These allegations represent alarming conduct – by one of the largest mortgage lenders in this country, during the height of the housing market boom," he added.
The money will be used to compensate victims of Countrywide's discriminatory mortgage loans from 2004 through 2007, the Justice Department said.
Minorities were steered to more expensive subprime loans even though they were qualified for traditional mortgage rates. Justice Department officials said it was the largest residential discrimination settlement in U.S. history.
"The victims had no idea they were being victimized. They were thrilled to have gotten a loan and realize the American dream," Thomas Perez, head of the Justice Department's civil rights division, told reporters. "This is discrimination with a smile."

Countrywide had net earnings of about $6.7 billion between 2004 and 2007, according to the Justice Department.
"We are committed to fair and equal treatment of all our customers, and will continue to focus on doing what's right for our customers, clients and communities," said Bank of America spokesman Dan Frahm.
"We discontinued Countrywide products and practices that were not in keeping with our commitment and will continue to resolve and put behind us the remaining Countrywide issues," he said, noting that Bank of America's own practices were not at issue.
The settlement comes as the Obama administration has faced some criticism for the lack of prosecutions related to the conduct of financial institutions during the U.S. housing crisis.
The Justice Department's civil rights division has about 20 investigations open into allegations that financial institutions engaged in discriminatory practices against minorities buying homes.