WSJ: Holder's Justice Department sues a bank for prudent lending. Yes, for making safe loans, not Coutrywide loans.

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WSJ: Holder’s Justice Department sues a bank for prudent lending. Yes, for making safe loans, not Coutrywide loans.

WSJ: Holder’s Justice Department sues a bank for prudent lending. Yes, for making safe loans, not Coutrywide loans.

WSJ-

Banks have been widely castigated for causing the housing bust by lending too much to borrowers who couldn’t repay, but now Eric Holder’s Department of Justice has taken its antidiscrimination campaign to new lengths by whacking a bank for having been too prudent.

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 …

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2 Responses to “WSJ: Holder’s Justice Department sues a bank for prudent lending. Yes, for making safe loans, not Coutrywide loans.”

  1. Sarah says:

    Another questionable move that threatens the credibility of the Holder bunch. Like any other group of Politicians, this was probably a carefully considered decision that sought the most positive publicity with political correctness. This, during a time where everyone knows a massive double standard exists for non-enforcement/persuit of TBTF.

    The original intent 1968 Fair Housing Act and 1974 Equal Credit Opportunity Act is potentially corrupted – as this provides a dishonest impression of consumer protection. The issue that is not addressed is predatory lending, liars loans, which Holder remains oblivious to. Liars loans, TBTF, is the trillion dollar Elephant in the room. Something homeowners all over California who’ve been tossed to the street would agree with.

  2. Charles Reed says:

    Here what you got and that is where most banks can be charged with discrimination which I have brought to the Justice Dept attention as the OCC, FDIC & OTS and other regulators allowed these banks to cherry pick their borrowers.

    If the regulators required all banks that where providing Prime loans, to also supply FHA & VA loan also you would not have had this crisis because most subprime borrowers where qualified for at least a FHA or VA loan. However black borrowers where sent out of their bank being told they were not qualified and either handed out to (in the case of Wells Fargo) subprime units or bank that did not have a subprime division, would send the borrowers out the doors and into the lap of the subprime lenders.

    The regulator have a bigger hand in this because they did not know the mortgage business and what to look for!

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