Bank of America to pay record civil charge

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WASHINGTON - 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.

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Craig Spinks
817
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Craig Spinks 12/22/11 - 05:44 am
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Mortgage-originators,

Mortgage-originators, -bankers and other thieves involved "up to their eyeballs" in the creation of the ongoing mortgage crisis through their fraululent lending practices deserve to spend long sentences incarcerated with Bubbas or Sissies, depending upon their respective genders.

Riverman1
84011
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Riverman1 12/22/11 - 05:49 am
0
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I'll be a realist. The crime

I'll be a realist. The crime was more minorities had to go the subprime route. That's the statistic the Justice Dept. based their case on. Could it be the minorities had credit not as stellar as the whites? Let's be honest here.

charliemanson
1
Points
charliemanson 12/23/11 - 07:36 pm
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RM, from my understanding,

RM, from my understanding, many of the minorities did have stellar credit ratings but were being steered the subprime route. The big crime was the Federal Reserve in 2008 forcing financially, solid banks to purchase troubled institutions such as CountryWide to hide how bad the housing crisis had started to become. When you give a company no option to research or say "no" to a purchase , this is how all the other baggage ends up coming along with the purchase. Now, the bond and stockholders along with the taxpayers are being punished for these mistakes in 2008.

Riverman1
84011
Points
Riverman1 12/23/11 - 07:39 pm
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Charliemanson, could be, but

Charliemanson, could be, but why does someone take a higher interest loan if their credit is good? I mean there's just something about it that makes me wonder. This nebulous description that they were "steered" to subprime loans is suspect.

The principle of buyer beware shouldn't stop with white people. What would have happened if these people with good credit had walked away from the subprime loan? I'd guess they would be offered the usual loan if the bank was actually making money on them.

charliemanson
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charliemanson 12/23/11 - 08:58 pm
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RM: Good point. Awhile back,

RM: Good point. Awhile back, a loan officer calling into the Neil Boortz show echoed this same sentiment when he stated that he had renegotiated many loans for minorities who seem to have accepted the "first offer" given to them instead pushing ahead and looking for better rates. I guess its like buying a car...it takes experience to know how to get an edge on a dealer, if there is such a thing.

Riverman1
84011
Points
Riverman1 12/24/11 - 10:23 am
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CharlieManson, good point

CharlieManson, good point back at ya. That's pretty close to the truth.

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