Racial Discrimination And The Credit Crisis

I suppose this was inevitable. As reported in Housing Wire, a so-called consumer advocacy group, the National Community Reinvestment Coalition, filed a complaint with HUD alleging that Moody’s and Fitch had engaged in discrimination.

I can’t stand to type this stuff, so here is what they have to say:

“The complaint alleges that Moody’s and Fitch issued false and inflated ratings for securities backed by problematic high-cost loans. Reckless and irresponsible lending has restricted housing opportunity for countless African-American and Latino families who have already lost their home or are now in jeopardy of foreclosure,” said John Taylor, president and chief executive officer of NCRC. “The Emperor had no clothes, and yet the rating agencies continued to say he was dressed in his Sunday’s finest.”

I wasn’t aware that the credit crunch had only hit a couple ethnic classes. Silly me, I thought we were all suffering.

Tom Lindmark

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