Obama Regime Forces Banks to Make Race-Based Loans, Ensuring Another Housing Crisis
The 2008 mortgage meltdown and ensuing financial crisis were largely caused by militant leftists who used the fist of Big Government to force banks to make bad loans based on race for the sake of wealth redistribution. The collapse worked out great for the Democrats, sweeping Obama into power, giving him a ready excuse for the predictable failure of his socialist policies, and making millions more reliant on government handouts. Consequently, it should come as no surprise that the Regime is doubling down on this lunacy, as if deliberately conspiring to cause another crash:
In a complaint filed Wednesday and settled the same day, Justice claimed that California-based Luther Burbank Savings violated the 1968 Fair Housing Act and 1974 Equal Credit Opportunity Act by setting a policy that had a “disparate impact” on minorities. Between 2006 and mid-2011, 5.2% of Luther’s single-family residential mortgage loans went to African-Americans and Hispanics, compared to an average of 41.7% for other lenders in the area. The complaint doesn’t cite evidence of intentional discrimination because there wasn’t any. …
Over the period that Justice examined, Luther Burbank foreclosed on a mere 11 borrowers out of 629 loans outstanding — a loss ratio of 1.75%. In a normal world, Luther Burbank would get a medal from regulators for its risk management, having chosen borrowers even at the height of the housing mania who could meet their monthly payments.
But Assistant Attorney General for Civil Rights Thomas Perez has a different priority: He wants banks to meet lending quotas to minorities — regardless of whether those borrowers can afford the loans.
Obviously it isn’t the bank’s fault if politically privileged ethnic groups do not have the same work ethic as ethnic groups our liberal overlords despise. But “social justice” means never worrying about what a sane person would regard as fair.
How is a bank supposed to stay in business under these circumstances? It isn’t. Those that are deemed Too Big to Fail under Dodd-Frank have in effect been nationalized. The rest are obstacles to be eradicated on the path to socialism.
Luther Burbank admitted no guilt and said it settled to avoid costly litigation, which makes sense for a small, local lender that has to worry about its reputational risk. The bank has agreed to ratchet down its minimum loan to $20,000 and will now commit $2.2 million to a “special financing program” for “qualified borrowers,” payouts for local community groups, and “consumer education programs.” Justice has the final say on who gets that money.
In other words, they got mau-maued by the racist socialists who run the government. To think this was once America.
On a tip from Varla.
[...] worked out great for the Democrats, sweeping Obama into power, giving him a ready excuse for [...] Moonbattery Tags: another, banks, crisis, Ensuring, Forces, Housing, loans, Obama, RaceBased, regime Posted [...]
By “qualified borrowers”, of course, they don’t mean qualified by virtue of being able to actually make the payment. That’s so old-fashioned.
“social justice” = revenge
I’m posting these two videos especially for uneducated moonbats who like to parrot Obama’s discredited speech lines about Bush’s policies that got us into this mess.
Please enjoy:
http://www.youtube.com/watch?v=ebWJ892h5dA
http://www.youtube.com/watch?v=Lr1M1T2Y314
Well, since it worked so well the first time to ravage the economy, why not do it again? After all, isn’t obongo’s primary mission in life to bring America into an irreversible era of misery and poverty? Is it really surprising to anyone that the radical muslim “president” is doing things that have disastrous implications for our country? Something else no one should be surprised about is the very real possibility that obongo will declare martial law before the election. Hope and Change in action.
it was the national socialist democratic workers party that caused the recession with the community reinvestment act passed by carter.this was affirmative action lending to negroes who never paid the loans back.then freddy and franny hid the losses for years until they used the losses to defeat mcswine in 08 and blame bush.these people are such bull shitting liars that they want to do it again.bongo has to go!!!!!
Unbelievable. Intentional Cloward-Piven, all the way.
klae says: “social justice” = revenge
Indeed. Indeed, my friend.
These meddling ‘social engineers’ in government have to be put down like rabid dogs … they are playing games with our freedoms and our lives, people like the disgusting Nancy Pelosi and the dog Reid .. these idiots are playing fast and loose with the power they have gained via politics .. to try to demand that productive and decent people embrace lunacy and open their very souls to miscreants of all shades .. its time to stand up and demand their ouster..
Liars and demonic perverts…
For me, the scary thing is, after the Muslim-in-Chief is run out of the WH, how long will it take the next president to root out all the Obamunist radical Leftists and racists that have been placed deep inside major govt. agencies, assuming it’s possible to get them all out.
No one is stupid enough to believe they will overnight become America-loving conservatives simply because there’s a new president.
This is extortion. There is no other word for it. Our government are criminals running a protection racket.
Here we go again. Bozo sued and forced lenders to provide loans to 86 people in his “activist years”. So what happened to those loans. Half defaulted and the homes went into foreclosure. Who voted for this clown? And the better question might be who is still supporting him? It boggles the imagination.
And Still the left refuse to take blame for the economic breakdown. History repeats.
Video
Taste Test.
Examples of leftist
”Arithmetic!” – Clinton/Biden/0bama