Foreclosure Wave Hits Minorities Hardest

J Philip Faranda May 16, 2009

According to the NY Times, minority homeowners are three times as likely to be foreclosed on than the norm. The NAACP is actually suing lenders over what they perceive as a new kind of redlining- giving minorities inferior and unsustainable loans. I made the following comment on the article on the Time’s website:

 

I was a loan officer in the Bronx from 2002-2007. While the article mentions the NAACP lawsuit, one thing that often goes unmentioned in this discussion is that the foot soldiers in this mess- the loan officers and agents who put these people in unsustainable circumstances- were often minorities themselves.

I recall a group of Hispanic loan officers who worked the Spanish-speaking niche & bragged how they put people with excellent credit into sub prime 2 year adjustable loans because of the profit margins and the repeat business, as the borrowers would refinance out of the loans before the adjustment period. What happened to those borrowers when the market changed is probably not pretty.

These men and thousands like them leveraged their common ethnicity to exploit trusting clientele. Utterly repugnant.

Without strong oversight, capitalism is doomed.

— Phil, Briarcliff Manor, NY

 

As I have often written, I list and sell short sales all over the metropolitan New York area. I still see the effects of predatory lending and poor decision making. But the common theme is a betrayal of trust. Many people assumed that because they had something in common with their agent or loan officer, that “they were one of them,” they wouldn’t get hurt. But get hurt they did, because greed is colorblind.

J. Philip Real Estate 

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J. Philip Faranda is New York’s Premier Short Sale REALTOR. Read Phil’s short sale blog here at http://NYShortSaleBlog.com.

J. Philip Serves Briarcliff Manor, Ossining, the River towns , Westchester County & the bedroom counties of New York City.

 

 

 

 

 

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