Reverse Redlining! The Abuse of Minorities and No Outcry!

I think this analysis is well intentioned, but far too simplistic and leads to a summation that "the sub-prime crisis was caused by CRA and the government saying banks should lend to underserved communities".  Redlining was far more pervasive than "some minority areas were marked off as bad areas to make loans". It goes back to the origination of the FHA, which encouraged homeownership after the depression, but specifically excluded black or even mixed areas as "risky".  That designation took decades to overturn.  In many cases, the housing stock in these communities increasingly needed reinvestment and owners (many of whom got their mortgages through purchase contracts) could not get "real mortgages".  It is no wonder then that after loans became available, people took them.

One of the issues with the sub-prime mess, is that 30-50% of the minorities that have these actually had good enough credit for traditional loans but were steered into these loans.

And if you think minority organizations and community organizations were not protesting this, you just were not near enough to be listening.  They have been alarmed about this for nearly a decade, but their concerns fell on deaf ears.

Now the effects of the "sub-prime crisis" will impact most of the country and impact minorities most.  As values drop, minorities will lose even more value. The difference between neighborhoods will be diminished as too micro for the industry to be concerned with and "all boats will sink".  And since minorities have one tenth the asset base of the majority, these are becoming areas where only those not reliant on a mortgage will be able to acquire property.

This Federal Housing Legislation actually started in 1998 a Bill Clinton/Democrat Party Initiative. It was bolstered heavily by both political parties right after 911.

What nobody is proferring into the analysis is the effect of 911 and "How" the housing industry was manipulated to restore the economy after that catastrophic event on our financial infrastruture. What we're experiencing now is politicians ignoring "facts" and the "irresponsiblities" of their votes and public statements on subjects they know very little to nothing about.

I'll have been in the industry for 12 years this October have never placed anyone in a loan with terms that I would not sign myself regardless of their circumstances. This has resulted in ongoing referrals and referrrals of referrals especially among minorities.

I am absolutely amazed that at this point in time of this catastrophy that dozens if not hundreds of Executives of National Mortgage Banks and secondary market aggregators on Wall Street have not been "frog-marched" into jail custody on National Television. Starting with Anthony Mozillo of Countrywide.

We have Senators on the Banking Committee whom recieved "sweetheart" mortgages to promise that  their future votes favor National Mortgage Banking Lobbies (whom wrote the guidelines for these horrible loans) and they are allowed to play "watchdogs" on the consuming publics behalf. The Media jumps on the bandwagon and places blame exclusively on mortgage brokers whom meet the conditions of the loan programs they don't write the rules. Wrong, Wrong and Wrong. Throw the bums out.

Redlining is ZIP code geographical discrimantion targeting!

Reverse Redlining is Fed Legislators crimes against their own constituencies and needs to be presented as exactly what it is. Of course the NAACP and the ACLU are blinded by their victimization reparations motives and their funding is perpetuated by the same political crooks that deliberately created these problems to pander for votes.

This problem will not be solved with news "head-line sensationalism" in this civil suit or any other for that matter.