Morgan Stanley Sued Over Racially Discriminatory Home Lending Policies in Detroit

As described in this article by Emily Badger:

In the years leading up to the housing crash, public data suggest that
black would-be homeowners in Detroit were 70 percent more likely than
white borrowers to receive a risky subprime loan from the now-defunct
lender New Century Mortgage Company. This is the central statistic embedded in a 70-page lawsuit
filed Monday in New York against Morgan Stanley, the investment bank
that went on to purchase a large share of those loans for repackaging in
mortgage-backed securities.The suit, filed by the ACLU and the National Consumer Law Center,
alleges that a kind of "reverse-redlining" became the norm in Detroit.
Fifty years ago, discriminatory housing policies prevented many blacks
from obtaining home mortgages. Barely five years ago, this suit suggests
that a different kind of racial discrimination was taking place in
Detroit: Predatory lenders couldn’t approve enough high-risk loans to
black borrowers, increasing Morgan Stanley’s profits and
disproportionately leaving many of these black homeowners in financial

0 thoughts on “Morgan Stanley Sued Over Racially Discriminatory Home Lending Policies in Detroit

  1. cheap tyres says:

    The vast majority of cars in Britain use all-season car tyres as standard, nonetheless there are actually many different types of tyres, each with their own pros and cons in various weather and road conditions.

Leave a Reply

Your email address will not be published. Required fields are marked *