NAACP Accuses Banks of Loan Discrimination

Banks jumping back into lucrative market

(NEWSER) - That whole "subprime crisis" hasn't scared banks away from the lucrative world of subprime lending. The nation's top subprime lenders—like Capital One, GM Financial, HSBC, and JPMorgan Chase—are all trying to woo back less-creditworthy borrowers, who tend to rack up late fees while paying rates as high as 29%, the New York Times reports. "It's clear that we are returning to business as usual," said a former Federal Reserve regulator. But that's not entirely true; the focus hasn't yet shifted to mortgages, it's on auto loans. More»

Countrywide, WaMu got $35M as they upped risky loans

(NEWSER) - Rick Perry handed mortgage lenders millions to draw them to Texas—right when their risky lending practices surged. The governor gave Countrywide $20 million and Washington Mutual $15 million in what he called an exemplary job-creation move; in effect, that $35 million subsidized dangerous subprime lending, an AP analysis of data and records finds. And when some began to fear the impending mortgage crisis, Perry's rep shrugged off their concerns as “slightly alarmist.” More»

Senate panel says lender knowingly built 'mortgage time bomb'

(NEWSER) - Washington Mutual made subprime loans it knew would go bad, then packaged them into risky securities, creating a “mortgage time bomb,” according to a Senate report. The permanent investigations subcommittee is grilling former WaMu execs this morning. The report also says the bank packaged and sold loans it knew were tainted by fraud, without disclosing the fraud to buyers, the Los Angeles Times reports. WaMu even pushed some buyers who qualified for prime loans into subprime ones. More»

(NEWSER) - The market for subprime mortgages may have dried up, but former salesmen have found a new calling: as loan modification advisers who help clients refinance the high-risk loans they used to sell, reports the New York Times. For a fee of around $3,500—the bulk paid upfront—former subprime marketers now offer to negotiate lower payments for the now-delinquent homeowners who snapped them up. More»

Analysis of gov't data reveals sources of the economic meltdown

(NEWSER) - Some 21 of the top 25 subprime lenders that triggered the global economic collapse were either owned or financed by banks that ended up needing bailouts, an analysis by the Center for Public Integrity finds. Among the backers, who make huge profits on the subprime business, were Lehman Brothers, Merrill Lynch, JPMorgan, Citigroup, Goldman Sachs, and AIG. More»