By: Las Vegas Now Staff
More trouble for the already troubled mortgage industry today. The NAACP is filing a class action lawsuit and holding rallies in multiple cities, including Las Vegas, alleging discrimination based on race.
It was a very small group with a big message. In fact, an HSBC employee came by and said the company gave its employees a day off so they wouldn't have to see the protest.
The group wasn't interested in disrupting operations. They just wanted to raise awareness about some pretty alarming discrimination statistics.
One of those statistics, according to a July 2007 report by Freddie Mac, African Americans pay 1.25 to 2.75-percent higher loan rates than white Americans who have the same credit scores and incomes. Today, the NAACP in its lawsuit is calling for banks to do something about it.
“I don't know why this happens and that they know — its time for them to take steps to fix that. And if no one comes out here, then nothing is going to happen,” said Richard Boulward of NAACP.
That's what NAACP members are raising awareness about today in 16 cities about 17 lending institutions. The NAACP isn't asking for any compensation in its lawsuit, just that the courts create a system for banks to monitor and stop this discrimination.
Discrimination in mortgage lending is prohibited by the Fair Housing Act. There are penalties between $11,000 and $55,000. But it's a complaint process, and you can imagine for an individual to take on a bank would seem like the odds are against you.
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