Tavis Smiley needs to have a conversation with one of his primary sponsors, Wells Fargo. This week, it was announced that Wells Fargo is being sued by the city of Baltimore for egregiously racist predatory lending practices in the black community. The company has been accused by some former loan officers of targeting subprime, low quality loans to black neighborhoods, leading to a dramatic economic collapse for the black community of Baltimore.
The statistical evidence is daunting. Half of all the properties foreclosed by Wells Fargo are vacant and 71% of those properties are in black neighborhoods. Wells Fargo’s African American borrowers with incomes greater than $68,000 per year were 8 times more likely to hold subprime loans than white borrowers with the same income.
Dr. Christopher Richardson, one of the world’s leading experts on predatory banking, states that, “There are virtually no federal laws prohibiting predatory lending like those that prohibit explicit discriminatory pricing or redlining.” Richardson, who is a former fair lending economist with the Justice Department, goes on to state that, “They essentially have two different banks – a prime bank (for lower-risk borrowers with low default rates) and a subprime bank (for higher-risk borrowers). They market the subprime bank in minority neighborhoods, and the prime bank in non-minority ones. The advertising might be misleading, too, so as to make the subprime customers think they’re working with the prime bank (“Wells Fargo Financial” vs. “Wells Fargo Home Mortgage” sound pretty similar, for example). So, if everyone in the prime bank is treated equally regardless of race, and likewise for everyone in the subprime bank, then the bank as a whole will look like it’s not breaking the law.”
To read more of Dr. Richardson’s comments in detail, please click here.
There is a deeper and more serious concern with the stunning accusations being thrust against Wells Fargo, and this involves Tavis Smiley.
Wells Fargo is one of the primary sponsors of the State of the Black Union conference held annually by Mr. Smiley. The State of the Black Union is a respected event, in which scholars and leaders in the black community get together to discuss policy for African Americans. There is an element of trust granted to the forum that the speakers will provide recommendations for consumer choices that are ultimately healthy for the black community.
One can remember a scene in the movie, “American Gangster”, where the drug dealer Frank Lucas gave away turkeys and Christmas presents to justify the fact that he was simulteanously working to get the neighborhood addicted to heroine. Should the accusations against Wells Fargo have merit (which may be the case, since many organizations and governments around the nation are suing them for similar practices), then one must wonder if there is a secondary agenda in their decision to sponsor the State of the Black Union so heavily. Do they feel that a payoff to Tavis Smiley will help them persuade African Americans to come into their banks for predatory loans? Should Smiley take such funding without there being an appearance of impropriety? In order to maximize profits, you can see how Wells Fargo could stand to give a few thousand dollars to a leading black conference if that were to lead to millions in additional banking fees.
This ia just the tip of the ice berg. This isssue is more complicated than most know. Here are a few leverage points to look for:
1. Favoritism in underwritingcies exercised in some zip codes and not in others. Meaning, they would make lending exceptions of 5% LTV or more but would turn down or restrict equity positions for many minority applicants with good credit and income.
2. Striking deals with appraisers to get the value they need to get the loan.
3. Using online evaluations that they knew were incorrect.
I am also a victum of Wells Fargo Outragious lending policies.
I have a credit score of 746 yet Wells Fargo is charging me a
whooping 11.45% interest rate (finance charge) on a $8,000.00
auto loan. Out of the $198.18 monthly payments I pay, Wells fargo
collects $71.42. The car (a 1993 ford) is only worth $6,000.00 in
good shape. I have six years to pay it off at which time i will have paid over $13,000.00 for the car. They have me in what is know as an over and under situation. It’s just not fair I started paying in 2007 and to this date i’ve paid $4,756.00 Since i have full coverage I am almost incourage to have the car stolen and getting out of rip off. Then ontop of all that the goverment gives them billions of tax payers money. It is so unfair.
they need to look in the state of Virginia with wells fargo car loans. i pay 840.00 on a 2005 car. i can be paying for two cars. and i am still paying for that car.
kulując. – Chociażby nie Elden zaleczyliśmy do samego końca bildpresse Łódź psychicznych skaz po Penetracji Żuków, oraz tu
moja babsztyl…
– Niejaką nieuzbrojoną firmę? Jedna, niewielka, Elden
nieuzbrojona korporacja nie postanawia żadn.
This design is spectacular! You obviously know how to
keep a reader amused. Between your wit and your
videos, I was almost moved to start my own blog (well,
almost…HaHa!) Wonderful job. I really loved what you had to say, and
more than that, how you presented it. Too cool!
This blog was… how do you say it? Relevant!
! Finally I have found something that helped me. Many thanks!
Can I simply just say what a relief to discover a person
that really understands what they’re discussing on the internet. You actually realize how to bring a problem to light and make it important. More people must read this and understand this side of your story. I can’t believe you are not more popular because you surely have the gift.
Hello, Neat post. There is an issue with your web site in internet explorer, might test
this? IE nonetheless is the marketplace leader and a good
component of folks will miss your magnificent writing due to this problem.
What you ought to do is find a wedding marquee hire that will provide you with the cost effective for the money.
While some maintenance can be done by a homeowner, a good plumber or HVAC technician
should be consulted to make sure that your heating system will run efficiently during
the next winter season and for years to come.
The odor can smell like moldy must or worse than that.
I leave a leave a response each time I especially enjoy a
article on a site or if I have something to contribute to the discussion.
It is caused by the sincerness displayed in
the post I browsed. And on this article Wells Fargos Alleged Cheat of the Black
Community | African American Money. I was actually excited enough to post a comment :
-) I do have a few questions for you if it’s allright. Could it be just me or does it seem like a few of these remarks look like they are left by brain dead folks? 😛 And, if you are writing on additional online sites, I’d like to follow everything new you have to post.
Would you make a list the complete urls of your
communal sites like your Facebook page, twitter feed, or linkedin profile?
There’s definately a great deal to find out about this issue. I really like all of the points you have made.
This site certainly has all the information and facts I wanted about this subject and
didn’t know who to ask.
Yes! Finally something about Edible Gifts Plus Coupon
Code.
Wonderful blog! I found it while searching on Yahoo News.
Do you have any tips on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thanks
Thanks for the marvelous posting! I quite enjoyed reading it,
you could be a great author.I will always bookmark your blog and will come back later
on. I want to encourage one to continue your great job,
have a nice evening!
Hi there to all, how is all, I think every one is getting more from this site, and
your views are good in favor of new viewers.
Very rapidly this website will be famous among all blog visitors, due to it’s fastidious articles