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One West Fined For Redlining

glenn walker

Senior Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Equal opportunity lender : ) LOL
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
7 lashes with a wet noodle.
Harsh punishment, or cost of doing business? :leeann:
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Why does it look like BS to you?
Banks have more opportunity to lend to upper and middle class. Thus there is more loans to be made in more affluent areas. My brother's bank was accused of redlining because they made more loans west of the railroad tracks in both towns they had banks in and the banks were both on the west side. So? 80% of the town in both cases was west of the tracks. Who were they discriminating against? But the bank had to argue the demographics to get the feds off their rear. No issue with the only other banks in town because they were state chartered, not national banks. That was back in the early days after the big hatchet job done by a Boston bank study circa 1989. The conclusions were clearly foreordained to prove a point and force banks to lend more to people with less money and less capacity to pay it back.

Last year another spate of these claims came out and so you can expect another round of lawsuits to extract money from banks without any clear evidence that it helps anyone but lawyers.
 

Jim Bartley

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
It's nothing but extortion.
Not having a branch in a minority neighborhood is proof of redlining?

Where have we seen this before?

Respondent will make available five million dollars ($5,000,000) over the term of this Agreement for an Affordable Home Mortgage Program to provide discounts or subsidies on home purchase, home improvement, and home refinancing loans to borrowers in majority-minority census tracts in Respondent’s CRA assessment area. Discounts and subsidies under the Affordable Home Mortgage Program could be in the form of closing costs assistance, down-payment assistance, interest rate reduction, or mortgage insurance premium reduction. Such subsidies and discounts will be capped at thirty thousand dollars ($30,000) per loan and will be limited to loans that are for the borrower’s primary residence and are of a dollar amount that is within the G$E conforming loan limit at the time for the census tract applicable to the relevant loan. Within three (3) months of the effective date of this Agreement, Respondent will submit for the Department’s approval implementation criteria, including qualification requirements, for applications for such loan subsidies and discounts. If any portion of these funds remains unspent at the end of the term of this Agreement, then Respondent will use the remaining funds for grants to one or more non-profit organizations that promote home ownership opportunities in majority-minority census tracts within Respondent’s CRA assessment area.
 

ucbruin

Elite Member
Joined
Mar 11, 2014
Professional Status
Certified Residential Appraiser
State
Massachusetts
mnuchin in the link....
I don't need to read the article to have my mind made up.... :peace:
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Banks have more opportunity to lend to upper and middle class. Thus there is more loans to be made in more affluent areas. My brother's bank was accused of redlining because they made more loans west of the railroad tracks in both towns they had banks in and the banks were both on the west side. So? 80% of the town in both cases was west of the tracks. Who were they discriminating against? But the bank had to argue the demographics to get the feds off their rear. No issue with the only other banks in town because they were state chartered, not national banks. That was back in the early days after the big hatchet job done by a Boston bank study circa 1989. The conclusions were clearly foreordained to prove a point and force banks to lend more to people with less money and less capacity to pay it back.

Last year another spate of these claims came out and so you can expect another round of lawsuits to extract money from banks without any clear evidence that it helps anyone but lawyers.
Same gobbledygoo that stained FDR's otherwise good and necessary intentions to pull the nation out of the depression by having to accept the bankers compromise. The ensuing red lining screwed almost two generations of (primarily) minorities from accruing wealth that could be passed down to succeeding generations. The Johnson Administration enacted policies to mitigate that. Those policies are under attack in this generation.
 
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