Friday, November 25, 2005

It is shameful how the hurricane victims have suffered and continue to suffer while banks have trillion of dollars in their CRA commitments, which are utilized for purposes not the intent of the Community Re-investment Act of 1977.

Sunday, November 13, 2005

"Banking While Black"

This article appeared in USA Today; this is an edited version"Banking while Black " hurts homeowners African-Americans and Hispanic consumers face a double whammy. First, they are less likely than whites to own their homes. According to the Survey of Consumer Finance, 47% of African-Americans and Hispanics are homeowners, compared with 74% of whites. But even when African-Americans and Hispanics own their homes, they face lending discrimination when they refinance. This week, the National Community Reinvestment Coalition (NCRC) released a report on credit discrimination with troubling findings. Consumers living in areas with more minority residents are more likely to have mortgages with interest rates higher than "prevailing and competitive" rates. Some get these sub-prime because they have poor credit. But far too frequently, the problem is lending discrimination. Often, African-Americans, Hispanics and in some cases, elderly buyers who qualify for market-rate loans are steered to high-cost loans. This is especially true when they live in heavily black or elderly areas.In response to racial profiling on highways, some activists coined the term "driving while black". NCRC president John Taylor does them one better when he notes that "banking while black or elderly means that most are most likely to get gouged by high interest rates and fees." NCRC says the broken credit system can be fixed if the Federal Reserve Bank increases its oversight on anti-discrimination and fair lending laws, and if existing laws are better enforced. Because incomes were fairly stagnant in 2002, much of Americans' consumer spending has been financed by credit cards and home-equity credit. Too many African-Americans and seniors who are helping to keep the economy afloat are paying extraordinarily high fees to do so. That 's a lump of coal in a Christmas stocking, an injustice that needs to be rectified.Commentary by Julianne Malveaux

UAAD’s purpose and aim is to negotiate an agreement with Chase Bank to make available low interest loans that can primarily be negotiated under CRA circumstances for low income, moderate income individuals that will include African Americans. It is our opinion that this act and a good faith effort on the part of Chase Bank will supplement the necessary financial support needed by the flood and hurricane victims. UAAD’s purpose is to ask Chase Bank to honor our negotiation in order that a process can be developed immediately to assist our members (to include those who are suffering from Katrina) in low interest loans and fulfill the banks CRA obligations at the same time
In addition to fulfilling the banks CRA requirements, our program is a win situation for the bank and the community it serves (see our web site). UAAD’s proposal consist of community based loan programs micro-managed by UAAD to assist and help provide consultation in order that these low interest loans will be paid back to the participating bank. These community based loans instituted under CRA guidelines have been successful in the past. It allows the bank to fulfill its CRA obligations, and meets the prudent loaning practice required by the FDIC.
UAAD would like to meet as soon as possible with the proper official in order to present our proposal.

Complaint to: The Federal Reserve Board / FDIC / OCC

August 13, 1998, United Affirmative Action Development Corp (UAAD) was invited to Chicago by ACORN to protest the merger of Bank One and First Chicago. See: link uaad complaint to FDIC. After this hearing UAAD filed a complaint with the FDIC & OCC (See complaint and correspondence from FDIC/OCC, UAAD and Bank One).
Negotiations continued up to 1999. Bank One was again contacted on numerous occasions asking to enter into an agreement at their branches in Ruston, LA, where certain verbal agreements were negotiated. We also approached their Phoenix, AZ office in 2002 with promises but no action.
Additional information can be obtained on the following sites:
UAAD is asking FDIC/OCC to enforce the civil rights legislation “Community
Re-investment Act of 1977” (CRA). UAAD a 501c3 non- profit does not have the
legal expertise, nor should it need to have such, when it is the responsibility of the FDIC/OCC to enforce this regulation submitted by Congress in 1977 to address red-lining and discrimination by our nation’s banks.
Rather than assisting complainants, it appears that these agencies conspire with those who violate this regulation. (See Federal Reserve Press release dated 9/14/98 and OCC performance evaluation of Bank One, N.A.,ILL chapter number :8) Note Bank One’s performance in Louisiana and one can see why there are so many poor Black people in this state. Talking to Mr. Mizell Scott, the CRA VP for Louisiana, Bank One intends to continue their past practice of red-lining and discrimination. (See memorandum regarding telephone conversation with Mr. Scott and other Bank One CRA(?) officials.
UAAD/UEDC asks that the FDIC/OCC investigate this complaint immediately.
UAAD/UEDC also ask Congress to have a Congressional hearing to address the grievous violations Chase Bank has committed against UAAD/UEDC, its members and potential members. With the lack of past concerns, UAAD intend to take this complaint to Amnesty International and/or the United Nations if the government or Congress continues to fail to act. Additional documents and information available on request to clarify this complaint.

And Finally !
JP Morgan/Chase/Bank One should be indicted and face criminal charges,
possibly in violation of the RICO Act for red-lining, and discrimination against
African Americans, in Louisiana in particular.