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The federal govt. has deep pockets and will just spend you dry with litigation.
That's why it's hard to know how valid some of these claims are because the DOJ will just drag your name through the mud while hitting you with a huge legal bill.
More DOJ foolishness. Banks (and every other retail entity) place branches in the areas where they have the largest customer or potential customer base. It's like saying it's unfair a ski shop hasn't opened in Miami.
This seems to be setting new precedent on what "redlining" means. As I previously understood, it was the practice of denying mortgages based on location of the property used to secure the mortgage being in a minority neighborhood. Now it's been carried over to where a bank chooses to locate branches. WTF?
It seems to me banks would want to have branches anywhere they could generate a return, race of the potential customers having absolutely nothing to do with that calculation. In the 2000's, I absolutely can't imagine a bank board saying something like "we don't want to make money if it comes from black people."
This seems to be setting new precedent on what "redlining" means. As I previously understood, it was the practice of denying mortgages based on location of the property used to secure the mortgage being in a minority neighborhood. Now it's been carried over to where a bank chooses to locate branches. WTF?
It seems to me banks would want to have branches anywhere they could generate a return, race of the potential customers having absolutely nothing to do with that calculation. In the 2000's, I absolutely can't imagine a bank board saying something like "we don't want to make money if it comes from black people."
It's disparate impact theory at work.
The govt. blaming companies for their own failings.
Don't get me wrong, there is racism there....it's just passing the buck on who is responsible.
This seems to be setting new precedent on what "redlining" means. As I previously understood, it was the practice of denying mortgages based on location of the property used to secure the mortgage being in a minority neighborhood. Now it's been carried over to where a bank chooses to locate branches. WTF?
It seems to me banks would want to have branches anywhere they could generate a return, race of the potential customers having absolutely nothing to do with that calculation. In the 2000's, I absolutely can't imagine a bank board saying something like "we don't want to make money if it comes from black people."
It's not a big bank either. I'm sure the big nationals can lose money on some branches, can a small bank with 12 branches afford 2 that might not be very profitable?
This seems to be setting new precedent on what "redlining" means. As I previously understood, it was the practice of denying mortgages based on location of the property used to secure the mortgage being in a minority neighborhood. Now it's been carried over to where a bank chooses to locate branches. WTF?
It seems to me banks would want to have branches anywhere they could generate a return, race of the potential customers having absolutely nothing to do with that calculation. In the 2000's, I absolutely can't imagine a bank board saying something like "we don't want to make money if it comes from black people."
It's not new. We had to go through regulatory approval to close an underperforming branch that was located in a historically LMI area in West Virginia. We had to present a plan to the regulators that addressed how the bank would continue to meet the needs of the community in which we were chartered to serve. That was 25 years ago.
When a bank defines their operational territory they are genernally beholden to the entire area..
15 years ago I was an officer in a de novo bank, obviously starting with one branch. We defined 3 specific counties as 'main geographical and business footprint'. The presumption in that case is that we will look at ALL loans within that footprint. Easy enough.
However when we planned to open 2 branches- it was a BIG issue to be able to prove that we were NOT ignoring LMI areas. In our case the locations were not far from LMI areas and within public transit routes (internet banking itself was not a viable option for LMI services back then).
So yes- redlining 'historically' refers to lending and insurance, however the issue goes much deeper in regards to the operation of the bank in its' entirety.
So tell us, just WHAT did Obama have to do with a law enacted in 1968?
Or did you just have an irresistible urge to blame him for something, anything?
I don't think they are BLAMING Obama. It is common practice to name government officials in the documents when you are going after certain government related things.
Best example is when people sue the IRS. The person in charge of the IRS is usually named though they are not being personally sued.
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