Banks Shutting Down Branches In Poorer Hoods While Opening In Richer

Banks Shutting Down Branches In Poorer Hoods While Opening In Richer

The New York Times combed through the data and found that when the banks close branches, they’re doing it in poorer neighborhoods. And when they open a new branch, it’s more likely to be in a well-off area. While that makes business sense, it could violate the spirit of the Community Reinvestment Act which was passed to curb “redlining,” where lower-income neighborhoods are discriminated against by the financial services industry. [More]

Let's Perma-Ban Consumer Predators

Let's Perma-Ban Consumer Predators

Regulating consumer predators is a bit like Whac-a-Mole. No matter how many times you put the bad guys out of business, they keep popping up again and again. Maybe it is time to consider a lifetime ban from financial services for the worst offenders. The Consumer Financial Protection Agency proposed by the President may be just the right watchdog for the job of handing out such banishments.

HSBC, Wells Fargo Accused Of Racism In Mortgage Issuing

HSBC, Wells Fargo Accused Of Racism In Mortgage Issuing

The NAACP this week filed a class action suit accusing Wells Fargo and HSBC of charging unfairly high interest rates to African American homeowners with high incomes and high credit scores. The banks were quick to slap down the charges as “totally unfounded and reckless,” even in the face of convincing evidence from the NAACP.

Mortgage Brokers Demand Higher Down Payments From Borrowers In Risky Zip Codes

Mortgage Brokers Demand Higher Down Payments From Borrowers In Risky Zip Codes

Prospective home buyers may need to pony up more cash up front to secure a mortgage if they are looking to buy in one of hundreds of zip codes that lenders now consider “soft markets.” Countrywide and GMAC recently ranked over 1,000 zip codes on a risk scale of 1-5. Lenders to moderate risk zip codes, ranked 1-3, may require borrowers to pay an additional 5% down payment. Unlucky buyers in high risk zip codes, ranked 4 or 5, are now automatically required to put down the extra 5%.

UPDATE: Hertz Hatin’ On The Boroughs Too

Hey, it’s not just me and Dollar Rent-A-Car that hates the Boroughs and everything their denizenship of loudmouthed bozos and doofus hipsters stands for. Hertz does too!