A lawsuit has been filed and is seeking class action status against a dozen mortgage lenders for allegedly discriminating against black clients. The lawsuit was filed in US District Court in Los Angeles and claims the mortgage companies are steering blacks into higher interest, sub-prime loans, while giving more favorable loan terms to white borrowers.
The lawsuit names Ameriquest Mortgage Co., Citigroup Inc., HSBC Finance Corp., and Washington Mutual Inc. as defendants. Sub-prime loans are often aimed at borrowers considered by lenders to be a higher risk because of spotty credit histories. Borrowers who obtain such loans can end up paying much more interest. The lawsuit contends the lenders have engaged in institutionalized, systematic racism and notes that in 2004 black homeowners who received sub-prime loans were 30% more likely to get higher interest rates than white borrowers with the same financial qualifications.
If you feel you shold be included in this possible lawsuit, please contact the [National Association for the Advancement of Colored People]
