bank of america has decided to settle any case uh... where they targeted
african-americans and latinos across country filed with the which was
originally countrywide that was a company that data bank of america
required them they have decided to pay three hundred and thirty five million
dollars in that settlement
i will get back to elicit at big number not in the second
that and why did he do that and we're going to give it to me to do it over to
plundered
fallows and african-americans
and hispanic barabar was that they hire fees
and interest rates than non-hispanic white borrowers with some work whether
profile about personal credit profiles very important
deborah weigel i had a black guy walked into countrywide
not fails there pigs that same greta profile
they would give big black guy a higher interest or sub-prime loan the two or
three years later exploded sobe giving samples they start with a five percent
interest rate okay that's kinda doable all the sudden two years later looks
it's a fifteen percent interest rate
and then when they campaigned custody person is outrageous and nobody can pay
that kind of a
the first of all it takes so much more money from them
as they try to create a fifteen-percent rate
they make more money that way they make more money
because they get a higher commission on riskier loans
that's why they did so many sub-prime loans and then the ad there for a cause
other house and then throw it out you say that blacks and latinos
are no good they're uh... for closure risk so we have to charge them higher
rates in the future
both of you foreclose on that because he did an exploding sub-prime onto that
well before you might have said well maybe they do maybe they don't now you
can say that
they definitely do
they just paid three hundred and thirty five million dollars
shania are bad
put a blacker the hispanic guy walked in we screwed up when we screw remark
there was this countrywide your member id
uh... former changed a great said that's this is nicholas kristoff talking about
you james saxton who used to work for chase
these last several hours were disproportionately blacks and latinos
he said in the end up paying a higher rate so they were more likely to lose
their homes
series active seemed aware of this racial mismatch he recalled and
frantically tried to cover it up op
sad day for you by the way you know what i'll stay with you
prepayment penalties
if you have a good guy and say hey you know what when they pay off more of this
principal so that i have to pay less later right-side up as much because they
like now that's a penalty that may be more for paying wrote
iri
real people in this country
bus loaded up
undercover away from the back
okay now you think it has a big salomon not bad right
well of course
is huge downsides first of all the bank statement
through no fault of their own as i well you know ought to give you three hundred
and thirty five million dollars
but not because i did anything wrong
right right right and then if they didn't do it yet in any event three
eleven thirty five million dollars out of it
now they get their army of lawyers out there
and make a huge stake ever pay if they didn't do it
but says our governments we works for the banks
uh... the path
had them
acetyl uh... in a way that is so in favor of the banks
first of all
dead get along with this that statement says
that the people who were rob basically in this program
are not victims their alleged victims and
they're not agreed there allegedly grieve that's what the
the grievances here's more part of the agreement
defendants tonight all the actions the claims of a pattern or practice of
discrimination
but instead of thirty five million dollars
because didn't do a lot of the responsible for more than i thought was
directly into it
uh... and the other thing is
use of also bring criminal charges here this is criminal fraud
but of course are government loves to play patty cake for the banks of the
like i a m
uh... when i bring federal charges would do a settlement and it makes so much
more than three thirty five million dollars running the stamp
so they give us an a little piece of action back
and we call it a day
to give you a sense of how absurd and ridiculous the settlements get a load of
this action
the settlement requires countrywide to implement policies and practices
to prevent this from a nation temperatures not lending business during
the next four years
countrywide currently operates is sincere bank of america
but does not originate new loans
better show that means mentors countrywide you are not allowed to do
this anymore
it's a good thing you don't give out new loan so there's no chance you could do
it when now we've changed the name if bank of america says they required to
you
so hot
you know the bank of america can continue this on countrywide can to help
this country while giving it outlaws anymore anyway and by the way if u four
years from now if they want to bring back countrywide so they can run ask him
again i don't have this only applies for years
richard ask uh... what a great article about this on helping them post
any statement wait a minute should this be legal at all times
ones don't they apply for four years
he shows all the downsides of this agreement announced started his you know
the government did at have programmed to give me a sense of how much of it was on
the side of the banks that that is supposed to be home mortgage adjustments
right his own right here so i i know we give seven trillion to the bankers but
one adjustable mortgages
you know with a light run the program
so you know what the bank said they did a program called extend and pretend
so there's all you were all pretty uh... we're gonna modify your mortgage indeed
had people pay more
immediately then dried until they couldn't pay any more and a high and
proposal morales anyway
it was a colossal failure
white because it was designed to be a failure because that bracelet while
driving it
analyte lists like this much money out of these people that we've already
victimized
and therefore clothes on their house
at who had decided to do it this way of course
fed guide treasury secretary
president obama
signed off on its gave seven trillion to the bags
gables nafta
right is that what the based on the programs
that's screwed us
now
uh... don't worry though
we do you realize that have program is the problem
they didn't run right as h a n p right so okay that's gone the realize oh they
were in a fix it
so they have got uh...
that new administrator that is going to oversee that program
no i don't think so administrator
you guessed it
the backs