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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Tom Clarke who wrote (282532)	12/1/2008 7:05:03 AM
From: Tom Clarke	1 Recommendation Read Replies (1) \| Respond to of 793964

'You should never have made those loans groups like us pressured you to make!' The National Community Reinvestment Coalition, a "community-based organization," is suing Wall Street ratings services for approving bonds backed by home loans to African American and Latino home purchasers with "insufficient borrower income levels." The firms "knew or should have known" that subprime loans disproportionately were marketed to minority consumers -- a process known as "reverse redlining" -- and that those borrowers would ultimately default and go into foreclosure at high rates, according to the coalition's complaint. Hmmm. Didn't community-based organizations push for exactly this sort of reverse-redlining? I think they did. It's one thing to argue that they maybe weren't the major cause of the subprime meltdown. It's another for them to pose as victims wronged by the very system they worked hard to set up (including the securitization that enabled banks to keep up "reverse redlining"). ... 2:21 A.M. slate.com