News: NAACP Sues Mortgage Lenders, Alleging Racism

From CNN.com:

The NAACP filed lawsuits Friday against two of the nation's largest mortgage lenders -- HSBC and Wells Fargo -- alleging "systematic, institutionalized racism" in their subprime lending.

NAACP CEO Benjamin Jealous says, "We are not seeking damages; we just want them to fix the problem."

"We have targeted these banks because we have gone through what we can get our hands on, and it seems like there's a real problem here," NAACP CEO Benjamin Jealous told CNN.

Jealous said the group wants "transparency." "We want to see the books," he added. "We are not seeking damages; we just want them to fix the problem."

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Under subprime lending, people who don't qualify for lower interest rates can borrow money at higher rates. The NAACP argues that the companies gave subprime rates to African-Americans who qualified for better rates and gave better rates to white customers with similar credit histories.

The lawsuits note studies showing African-Americans have been disproportionately affected by subprime lending. But that's not solely because of intentional efforts to target African-Americans, according to the lawsuits.

"These statistical disparities are not mere happenstance, but instead result from the systematic and predatory targeting of African-Americans, as well as facially neutral lending policies and practices that have a disparate adverse impact on African-Americans," said the lawsuits, which were filed in U.S. District Court for the Central District of California.

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Ironic, considering some have tried to blame the financial crisis on African Americans.