SYS-CON MEDIA Authors: Pat Romanski, Liz McMillan, Elizabeth White, William Schmarzo, Yeshim Deniz

News Feed Item

NAACP: Bailout Mortgage Plan Is Too Little Too Late for the Majority of African American Borrowers; Amended NAACP Class Action Filed Today Naming Additional Lenders

NAACP: Bailout Mortgage Plan Is Too Little Too Late for the Majority of African American Borrowers; Amended NAACP Class Action F

LOS ANGELES, CA -- (MARKET WIRE) -- 12/18/07 -- The National Association for the Advancement of Colored People (NAACP), which filed a class action lawsuit in July against a dozen major subprime lenders alleging institutionalized racism in lending practices, says President George Bush's plan to freeze introductory mortgage rates for five years won't help the majority of African Americans who have already been victimized by discriminatory lending practices. Seven additional lenders were added to the lawsuit today (National Association for the Advancement of Colored People, et al vs. Ameriquest Mortgage Company, A Corporation, et al. July 11, 2007, amended Dec. 18, 2007, Los Angeles Federal Court, Case No. SACV 07-0794).

"It's a case of too little too late," says Brian Kabateck, one of lead the attorneys representing the NAACP and a partner with the Los Angeles law firm of Kabateck Brown Kellner, LLP. "African Americans are at least 30% more likely to be placed into subprime loans and the President's so-called solution does nothing to help people who have been late on just one payment. For those hurt the most by predatory lending, the proposal is useless."

In July 2007, a report published by Freddie Mac (Federal Home Loan Mortgage Corporation) showed that minority borrowers pay higher annual percentage rates on mortgage loans than non-minorities with equal income and credit risk. For instance, in 2005, African American borrowers paid an average of 128 basis points more for loans than their white counterparts. In the subprime market, the difference was event greater -- 275 basis points more.

In data collected under the Home Mortgage Disclosure Act, from 2004 to 2006 it was estimated that African Americans were at least 31 to 34 percent more likely to be put into a high-cost subprime loan than similarly situated white borrowers.

"It is unfortunate that the government's plan does not scrutinize the practices of lending institutions, but instead provides lenders the opportunity to stave off government investigations into their racially discriminatory lending practices," says Angela Ciccolo, Interim General Counsel of the NAACP. "Although it appears the government is helping, in reality, it is helping a select few. The proposal is mere window dressing, allowing lenders to continue to engage in racially discriminatory practices with little government oversight."

When the NAACP lawsuit was filed in July, it was the first suit that had ever charged so many major mortgage lenders with racial discrimination. "Since July, we discovered other lenders that practice discriminatory and predatory lending," says Kabateck. "We filed an amended complaint today that names seven more lenders as defendants."

The new defendants are Countrywide, CitiMortgage, Suntrust Mortgage, GMAC Rescap, JP Morgan, National City and First Horizon. NAACP chapters throughout the U.S. will be holding press conferences about the new filing and to discuss concerns about the bailout plan.

Named in the original class action were Ameriquest Mortgage Company, Fremont Investment & Loan, Option One Mortgage Corporation, WMC Mortgage Corporation, Long Beach Mortgage Company, BNC Mortgage, Accredited Home Lenders, Bear Sterns Residential Mortgage Corporation, Encore Credit, First Franklin Financial Corporation, HSBC Finance Corporation and Washington Mutual, Inc.

"When African Americans pay hundreds of dollars each month on their mortgages because of discriminatory lending it affects everything -- retirement planning, college savings, consumer spending and quality of life," says co-lead counsel Austin Tighe of Feazell & Tighe. "Instead of home ownership being the cornerstone of the American dream, it becomes a nightmare. President Bush should have proposed a real solution. Instead, he bowed to the interests of the lenders and put a band-aid on a shotgun wound. We look forward to forcing real change and real relief through our lawsuit."

Filing the amended lawsuit is the NAACP and its legal counsel NAACP Interim General Counsel Angela Ciccolo of Baltimore, Maryland, Kabateck Brown Kellner in Los Angeles, Austin Tighe of Feazell & Tighe in Austin, Texas, and Gary Bledsoe and Daniel Covich of the Law Offices of Gary L. Bledsoe & Associates in Austin, Texas.

For a copy of the complaint, contact Amalia Najarro at Kabateck Brown Kellner: 213-217-5000, e-mail: [email protected]. Additional information regarding the NAACP is available on its website: NAACP.org.


CONTACTS:
Brian Kabateck
Kabateck Brown Kellner, LLP
644 S. Figueroa St.
Los Angeles, CA 90017
213-217-5000
310-780-2309 - cell
Email Contact

Diane Rumbaugh
Rumbaugh Public Relations
805-493-2877
Email Contact

Angela Ciccolo
Interim General Counsel
NAACP
4805 Mt. Hope Dr.
Baltimore, MD 21215
410-580-5792
Email Contact

Austin Tighe
Feazell & Tighe LLP
6300 Bridgepoint Parkway
Bridgepoint 2, Suite 220
Austin, TX 78730
510-372-8100
Email Contact

Gary L. Bledsoe
Law Offices of Gary L. Bledsoe & Assoc.
316 West 12th Street, Ste. 307
Austin, TX 78701
512-322-9992
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In today's always-on world, customer expectations have changed. Competitive differentiation is delivered through rapid software innovations, the ability to respond to issues quickly and by releasing high-quality code with minimal interruptions. DevOps isn't some far off goal; it's methodologies and practices are a response to this demand. The demand to go faster. The demand for more uptime. The demand to innovate. In this keynote, we will cover the Nutanix Developer Stack. Built from the foundat...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
As Enterprise business moves from Monoliths to Microservices, adoption and successful implementations of Microservices become more evident. The goal of Microservices is to improve software delivery speed and increase system safety as scale increases. Documenting hurdles and problems for the use of Microservices will help consultants, architects and specialists to avoid repeating the same mistakes and learn how and when to use (or not use) Microservices at the enterprise level. The circumstance w...
Sold by Nutanix, Nutanix Mine with Veeam can be deployed in minutes and simplifies the full lifecycle of data backup operations, including on-going management, scaling and troubleshooting. The offering combines highly-efficient storage working in concert with Veeam Backup and Replication, helping customers achieve comprehensive data protection for all their workloads — virtual, physical and private cloud —to meet increasing business demands for uptime and productivity.
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
"Cloud computing is certainly changing how people consume storage, how they use it, and what they use it for. It's also making people rethink how they architect their environment," stated Brad Winett, Senior Technologist for DDN Storage, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In their Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, and Mark Lav...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
@CloudEXPO and @ExpoDX, two of the most influential technology events in the world, have hosted hundreds of sponsors and exhibitors since our launch 10 years ago. @CloudEXPO and @ExpoDX New York and Silicon Valley provide a full year of face-to-face marketing opportunities for your company. Each sponsorship and exhibit package comes with pre and post-show marketing programs. By sponsoring and exhibiting in New York and Silicon Valley, you reach a full complement of decision makers and buyers in ...