NAACP: Bailout Mortgage Plan Is Too Little Too Late for the Majority of African American Borrowers [USA]

Author: NAACP [USA], Published on: 18 December 2007

The National Association for the Advancement of Colored People (NAACP)...filed a class action lawsuit in July against a dozen major subprime lenders alleging institutionalized racism in lending practices... Seven additional lenders were added to the lawsuit today... In July 2007, a report published by Freddie Mac (Federal Home Loan Mortgage Corporation) showed that minority borrowers pay higher annual percentage rates on mortgage loans than non-minorities with equal income and credit risk... The new defendants are Countrywide, CitiMortgage [part of Citigroup], Suntrust Mortgage, GMAC Rescap, JP Morgan, National City and First Horizon... Named in the original class action were Ameriquest Mortgage Company [part of ACC Capital], Fremont Investment & Loan [part of Fremont General], Option One Mortgage Corporation [part of H&R Block], WMC Mortgage Corporation [part of General Electric], Long Beach Mortgage Company [part of Washington Mutual], BNC Mortgage [part of Lehman Brothers], Accredited Home Lenders [now part of Lone Star Capital], Bear Stearns Residential Mortgage Corporation, Encore Credit [now part of Bear Stearns], First Franklin Financial Corporation [now part of Merrill Lynch], HSBC Finance Corporation and Washington Mutual, Inc.

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Related companies: ACC Capital Holdings Citigroup Countrywide Financial (part of Bank of America) First Horizon General Electric GMAC (now Ally Financial) H&R Block HSBC J.P. Morgan (part of JPMorgan Chase) JPMorgan Chase Lehman Brothers Merrill Lynch (part of Bank of America) SunTrust Banks Washington Mutual