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View Diary: I voted Friday, and I'm still angry (134 comments)

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  •  Good God I never heard this before (1+ / 0-)
    Recommended by:
    GreenMother

    it all fits together...

    "Politics is like driving. To go backward put it in R. To go forward put it in D."
    Election Day is TOMORROW. GOTFV and STFIL!

    by TrueBlueMajority on Mon Nov 05, 2012 at 08:23:13 AM PST

    [ Parent ]

    •  Predatory lending with ARM type loans was very (0+ / 0-)

      common in minority communities, it started after the Emancipation Proclamation. Many newly freed African American families tried to buy homes or buildings for businesses. It was common to put unreasonable terms on their loans, so that missed payments would result in foreclosure on the property.

      This served several purposes:
      1. It priced many out of property ownership
      2. When they did get a loan, they were likely to default, which meant the owner could potentially "Sell" the property over and over making interest on the sale as people defaulted under predatory terms.
      3. It made a minorities, esp African Americans look like high risk borrowers--basically setting them up for failure, and then labeling them as such as a whole group which in turn JUSTIFIED higher rates and more loan rejections.

      For a while we got this to stop. But the big lenders figured out that the only "real problem" with this practice was that they needed to expand their potential customer base. Why limit themselves to African Americans and Single Women when you can hit the entire category of Blue Collar and Poor and keep selling the same pieces of property over and over, holding out for a price hike when gentrification sets in, or whenever manufacturing might call for a rezone and a price hike too.

      When this was done, it also backs up this "Founding Father" bullshit about only wealthy, propertied Americans should vote, because look how irresponsible these people are, going for an ARM loan or refinancing to fix a house in dire need of repair while living on min wage and no healthcare!

      The nerve of some peasants!

      It also opened up communities for a land grab, without having to declare them blighted, though many would be now due to foreclosures and a lack of new buyers.

      And on top of getting years of payment +interest, + the property back, these lending institutions also get a bail out, while simultaneously attempting to rewrite our laws to suit their greed and their desire to disenfranchise the little people.

      Well Wonders Never Cease!

      •  i am aware of the predatory lending practices (1+ / 0-)
        Recommended by:
        GreenMother

        i was not aware that they were using foreclosures to keep people from voting, compounding the discriminatory treatment!

        "Politics is like driving. To go backward put it in R. To go forward put it in D."
        Election Day is TOMORROW. GOTFV and STFIL!

        by TrueBlueMajority on Mon Nov 05, 2012 at 09:30:58 AM PST

        [ Parent ]

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