Predatory Lending and Race: An Ugly Foreclosure Formula
The Indypendent has an in-depth look at how the rash of foreclosures across the country rooted in subprime lending has hit minorities much harder than other racial/ethnic groups hardest. Here in New York, subprime loans made up 27 percent of refinances last year. People of color are more than three times as likely to hold…
The Indypendent has an in-depth look at how the rash of foreclosures across the country rooted in subprime lending has hit minorities much harder than other racial/ethnic groups hardest. Here in New York, subprime loans made up 27 percent of refinances last year. People of color are more than three times as likely to hold subprime loans as non-minorities, and one in four homeowners with subprime mortgages in Crown Heights and Bedford-Stuyvesant, predominantly black neighborhoods in recent decades, were in foreclosure last year, according to federal data. If you were a profiteer looking to make money, you’re going to go into these communities with instruments that make refinancing or ownership look much more attractive, says Dr. Julianne Malveaux, economist and president of Bennett College for Women in North Carolina. And you’re going to do that by taking advantage of a historic antipathy between the black community and banks. The article tells the story of a black senior citizen who’s owned a home in Crown Heights since 1975. He was sold a subprime mortgage re-fi in 2006 with a rate that skyrocketed after a six-week teaser period at 1 percent. The homeowner, who suffers from dementia, now faces foreclosure. The broker who sold him the ARM got a $6,675 broker’s fee and another $14,420 from IndyMac for hawking a No Income No Asset Loan.
Facing Foreclosure [The Indypendent]
Photo by dominic bartolini.
Preying, not praying.
Caveat emptor and survival of the fittest. If you or your elderly grandpa aren’t smart enough to avoid obvious scam artists I don’t want you owning property next to mine that you, in your idiocy, might allow to catch fire or be overrun with rodents, etc.
If I become irrational when I’m old, I will be cared for by people I care for now. I assume these helpless old people were not good to their families and friends when they were more capable. They are getting what they deserve.
11:22 shut it…DOUCHE……
I agree some of these lending practices were very suspect but still people should have thought before as well…
OMG a Real Estate Agent saying stuff to get property sold thats what they do..They are all shady… They inflate everything…That will never change…People need to use common sense and buy within there means…
EXAMPLE:
A person has $2k in the bank
Decide to buy a $400K home with nothing down with no cushion in the bank as well…Buys the house with an ARM…
I should feel sorry for this person…WHY????
People should have realized some of this stuff I am so tired of people blaming everyone else when they should have looked in the mirror and realized they should be renting or buying something alot cheaper…
“No Income No Asshat Loan.â€
It’s terrible shame that the old guy got steered into a loan he couldn’t pay. A lookup in ACRIS shows a mortgage doc image from 1975 for a $1,900 (!) loan. Wonder why he or someone in the family didn’t work it out hold onto one of the earlier affordable loans and eventually pay it off and own free and clear.
Amount Recorded Party1 Party2
445000 3/21/06 FERGUSON, SIMEON MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC
360000 7/8/04 FERGUSON, SIMEON OPTION ONE MORTGAGE CORPORATION
264500 7/4/04 FERGUSON, SIMEON MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC.
180000 12/28/01 FERGUSON, SIMEON OLYMPIA MORTGAGE CORP
92000 11/17/98 FERGUSON, SIMEON G GREENPOINT BANK
0 6/19/75 FERGUSON SIMEON G STEINBERG MORRIS
These predatory lenders are just ass wipes, and can easily con people into signing up. Im a retired Detective and the a-holes need to be dragged to thier deaths. They wipe out the elderlys life savings and leave the people in worse poverty then they were before. There needs to be more federal regulations. People should go to Banks for mortgages ONLY, a lot of brokers are crooks and beleive me I know from experience and some of them are well known brokerage companies.
10:48 You are just an *sswipe. You do not know what these people were told or the dreams they were sold. They were thinking of having a piece of the AMerican pie before all u newbies in Brooklyn and other parts of NY come in and take it all. ANd there were predators of all races trying to cash in ont the rising realestate. ANd look what Greed has done. If the lenders were honest and not greedy this would never have happened.
It’s such a shame there are so many more ignorant self absorbed individuals like you that visit this website. THink before you comment.
The didn’t make subprime loans at 1%. 1% is the minimum payment on a pay option arm, a mortgage product that was only offered to borrower’s with a credit score over 620 at least with IndyMac bank.
Also IndyMac’s pay option arm program was 1% for the first year not 6 months.
I never sold any of these products but if you are going to tell the story at least get the facts straight. There are all these stories about predatory lending going around that are simply incorrect. Unfortunetly ther are people that are facing foreclosure today that were NOT subject to predators but since the news is everywhere they are jumping on the bandwagon to save their asses.
We had a client that borrower 3.6 million on a house worth 7 million dollars wh is facing foreclosure. The loan was a 5yr arm IO and they are only into the loan for about 1 1/2 years. Their rate didn’t adjust and now they are blaming everyone about their payment and how it caused them to go into foreclosure. Their payment is he same as it was day 1. Let alone that we gave them 1 million cash. Where did that 1 million dollars go???
Yes their are predators out there but it’s not the norm and it sorta feels like the Salem whitch trials wher fear is leading the way and finger pointing and blaming others is the result.
From- a responsible lender.
Come on, this guy was 75 years old with dementia, that could be any of our Grandpas. black, white, red, yellow. That’s sad. That’s criminal and I hope these fake a** brokers gets what is coming to them.