Perfect timing for the local rag to report on the front page a shakedown of Wells Fargo by the diversity racket. This plays right into my recent post on the economy being held at gunpoint by the diversity racket. Wells Fargo is being forced on suspicious reasons to settle out of court with the diversity forces over something that may or may not be true. I am actually going to defend the major banks in this instance. Why do you read about it in the paper? It is propaganda to keep pushing the idea that the system is keeping minorities down.
What is the meat of the situation. Let's read how the Star describes it.
In a landmark discrimination settlement, Wells Fargo has agreed to pay $27 million in restitution to 19 communities nationwide, including $1.42 million in Indianapolis. The National Fair Housing Alliance had accused the San Francisco-based lender of better maintaining and marketing bank-controlled for-sale properties in predominantly white areas than properties in largely African-American and Latino neighborhoods.
The report mentions how other banks have been targeted and they all deny performing discrimination. This is where common sense loses to the diversity racket that is backed up by our government and court system. The article gets juicy quotes from old black ladies about how the neighborhood turned, they chased off drug dealers (yeah right) and how the banks always be fixing white people up first. The banks don't get the opportunity to lay out the real reason for suburban neighborhood receiving fix ups and sales of foreclosures first. That may reveal too much information that is unsavory for the media and the left today.
The banks could fix up suburban homes faster because those have higher resale value and people want to move into them. I checked 31st and Eastern Avenue in Indianapolis. People have been moving out of there for decades, and it has plenty of criminal activity. The homes in crap hoods have low magnetism and there's another dirty secret to this game. Right after the crash, the only people getting home loans where people with diamond credit (mortgage banker phrase) for a couple years. This meant that the banks would be able to sell to higher income and sparkling credit score borrowers, who just happen to be underrepresented in non-Asian minorities. On top of that, the media has reminded us how blacks have been hit hardest by the housing crisis, which removes potential borrowers and buyers. Plus, the homes had low values to begin with, so why should Wells waste time fixing them up if the most you'll get for them is $75K? Wells Fargo was attacked for not moving quick enough on foreclosures in crap neighborhoods when faced with the largest foreclosure crisis in America. It's been 6 years, so the delays that they are attacked for were really what 2-3 years? That sounds reasonable. Wells Fargo was attacked by the National Fair Housing Alliance to shake them down for money to hand to clients of the progressive machine. The NFHA was crated in '88 and bills itself as "the only national organization dedicated solely to ending discrimination in housing". This is basic economics, but because the people affected are disproportionately minorities, an NGO has an opportunity to slice economic rents out of the FIRE economy.
Simple denial of reality with economics and business is at play here. Wells Fargo and the other banks are not discriminating. They are simply remediating properties in a manner that will maximizes their profits and delay loan loss writedowns in the current atmosphere. The settlement itself was a giant math problem of probability of loss + court fees + bad PR from loss = settlement (bribes) - income generated by new loans to victim group members. This article is more propaganda to get you thinking business is stacked against minorities instead of thinking about why those homes were abandoned and no one wants to move back into them. The article states how the settlement money will be turned into grants to help with down payments. That is how the settlement side has the subtraction of new fees. Wells is basically giving people equity in crap homes to just restart those high interest loans. High interest loans need equity no compared to 2005, so this settlement equity building block helps Wells generated new income streams. What, you thought there were other lenders and loan servicers out there? Hell no, the same firms accused of discriminating are going to b the ones making and servicing loans right back to the victim groups. The NFHA gets their cut, Wells restarts the high interest loans, and the hoods get new tenants.