A Renewed Crackdown on Redlining
In the wake of the subprime implosion, the Obama Administration has stepped up its scrutiny of disadvantaged neighborhoods' credit access
Community activists in St. Louis became concerned a couple of years ago that local banks weren't offering credit to the city's poor and African American residents. So they formed a group called the St. Louis Equal Housing and Community Reinvestment Alliance and began writing complaint letters to federal regulators.
Apparently, someone in Washington took notice. The Federal Reserve has cited one of the group's targets, Midwest BankCentre, a small bank that has been operating in St. Louis's predominantly white, middle-class suburbs for over a century, for failing to issue home mortgages or open branches in disadvantaged areas. Although executives at the bank say they don't discriminate, Midwest BankCentre's latest annual report says it is in the process of negotiating a settlement with the U.S. Justice Dept. over its lending practices.
Answer by chaiteamomma at 6:10 PM on May. 11, 2011
Answer by NotPanicking at 6:11 PM on May. 11, 2011
Answer by DSamuels at 6:11 PM on May. 11, 2011
You lost me at community activists. It doesn't matter if we learned anything, they will be loud about it until they get some attention. Recent history be damned.
Answer by QuinnMae at 6:18 PM on May. 11, 2011
But, these people have a 'right' to the loans. Why does it matter they don't have the income to service the loan? It is their right. No, wait. I thought it is a privilege to be able to request and be granted a loan for a purchase like a home after you have held a job for longer than 2 paychecks, saved some money to put down so you have something vested in the home, and proven you can be trusted to repay money borrowed. Silly me!
Answer by jesse123456 at 6:25 PM on May. 11, 2011
Answer by LoveMyDog at 6:33 PM on May. 11, 2011
Answer by hopeandglory53 at 6:43 PM on May. 11, 2011
When did the ability pay and credit stop getting people loans???? WHEN the banks started giving them to anyone to make sure everyone feels equal, and loved.... AWE! This gets me all warm and fuzzy inside.
Answer by amazinggrace83 at 6:56 PM on May. 11, 2011
Answer by yourspecialkid at 7:01 PM on May. 11, 2011
Next question overall
Here lets think about this for a second (another spin off of the dress debate...