Quote:
Originally Posted by Pornwolf
It's already been proven it's true unfortunately. Some suits are frivolous, this one isn't.
I have seen some as high as 28% when a fair rate is supposed to be between 6-8%.
Predatory lending is a problem and it has to be stopped across the board. Unfortunately the brokers that tend to setup these kinds of loans target blacks and the banks that handle them generally suck them in and do as many deals possible then sell off the debt in various ways so they can get out of harm's way scott free when all hell breaks loose (as it's doing now).
It's nice to see the NAACP is actually targeting a real problem for their people for a change.
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Maybe that's true, but I've heard the same for a lot of people..especially younger individuals with bad to semi-decent credit. I think many variables would need to be investigated before money is taken from an already slumping industry.
1. Were the agents that targeted a specific group of the same or a different minority?
2. Were some offices pushing harder on higher interest loans than others within a company?
3. What were the average credit scores of those involved?
4. How many points were added on avg. for specific dings? For instance, no doc, lower credit scores, lack of 6 months of income in the bank on a no down loan, etc.
Those are just samples. When I was buying my first homes, I shopped around to different lenders and was quoted many different rates. Some varied up to 8%. At the end, it was MY job to research rates, shop around and read contracts. I don't feel this should be any different based on skin color. It has to do with people not settling on the first price they are quoted.
As a similar parallel, when you buy a car, you are often offered APR's damn near 25%. The bargaining is done once the first offer is made, and it is your responsibility to negotiate the best deal. Sure it may take all day and quite a bit of research, but a person (or group) can't blame people making commissions. If a person rolls over and takes what's first offered, they will definitely get shafted. How many salesmen do you know that won't try to earn the biggest commission possible?
What should be done is the NAACP putting their defense money towards setting up loan education (in general) for people blanketed under the NAACP's umbrella. Taking from an already hurting industry will not solve anything, but it will help flush our economy further down the proverbial toilet. It's a sad thing that this country is so damn lawsuit happy. People will never learn to be responsible if there's always a lawsuit waiting to clean up the poor judgement of a few individuals.
