Obama admin accused of forcing bank to pay baseless racial settlement

posted at 9:21 am on February 8, 2016 by Jazz Shaw

The New York Post had something of an overlooked bombshell report this weekend regarding a settlement reached between the Consumer Financial Protection Bureau and Ally Bank last year. This is a strange story and if it proves true it could seriously affect the reputation and position of the CFPB. The case in question was a very expensive settlement reached between the Bureau and Ally over charges that they engaged in a pattern of racial discrimination in their automotive loan lending practices, denying applications or charging higher fees to minority applicants. But according to some new documentation revealed by the Post, the charges were exaggerated at best.

Newly uncovered internal memos reveal the Obama administration knowingly exaggerated charges of racial discrimination in probes of Ally Bank and other defendants in the $900 billion car-lending business as part of a “racial justice” campaign that’s looking more like a massive government extortion and shakedown operation.

So far, Obama’s Consumer Financial Protection Bureau has reached more than $220 million in settlements with several auto lenders since the agency launched its anti-discrimination crusade against the industry in 2013. Several other banks are under active investigation.

That’s despite the fact that the CFPB had no actual complaints of racial discrimination — it was all just based on half-baked statistics.

The more you read into the details of this report, the more strange the tale becomes. The initial accusations against Ally certainly sounded pretty damning, painting a picture of a company which systematically discriminated against minority loan applicants. If true, that’s obviously cause for action by the federal government. But what did they base the claims on? First of all, as the article notes, Ally wasn’t even being accused of such practices. The charge was drawn from a study of loan application data, and to make the story even more bizarre, the reports they used to reach these conclusions didn’t even include any racial identification.

Ally complained CFPB’s entire case was based on “disparate impact” statistics, not actual complaints by consumers, and that those estimates relied on guesswork about the race of the borrowers. (The auto industry does not report borrower race, so CFPB tried to ID race by last name and ZIP code, a so-called “proxy” method that is wildly inaccurate.)

“The evidence of discrimination on the basis of race and national origin is strictly statistical,” the agency confessed in a report footnote.

So why would Ally pay up if the “evidence” was so thin? Ally needed permission from the Federal Reserve to retain their status as a financial holding company. Without that approval they would have lost massive amounts of business and the feds made it clear to them that the investigation into the racial bias charges was being looked at as part of the approval process. Their current charter as a financial holding company was set to expire on December 24th and they paid up to Uncle Sam on December 20th. Of course, I’m sure that’s all just a coincidence, right?

Read the full report because there’s plenty more meat on this particular bone. Internal memos from the CFPB even admit that their case was so thin that they would have faced “litigation risks meriting serious consideration” if they wound up having to fight Ally in court. But instead of having to stand before a judge they were able to twist the bank’s arm and get them to cave in and pony up the cash. This department was the brainchild of Elizabeth Warren and there were plenty of concerns expressed by conservatives when it was summoned into existence as I’m sure most of you recall. This story deserves a lot more coverage but it will probably get lost in the fog of the election.

ObamaSad


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Comments

Blackmail, pure and simple, at the point of a fiscal “gun”.

ProfShadow on February 8, 2016 at 9:23 AM

Shakedown.

Obama doing his best Al Sharpton/Jesse Jackson impersonation.

Bitter Clinger on February 8, 2016 at 9:26 AM

No one should be surprised, this is what community organizers do……agitate and shakedown

Privatize It on February 8, 2016 at 9:27 AM

Nothing to see here
-lsm

cmsinaz on February 8, 2016 at 9:28 AM

Blackmail, pure and simple, at the point of a fiscal “gun”.

ProfShadow on February 8, 2016 at 9:23 AM

This is exactly the same thing as what Meal Ticket and Hillario!’s Administration did back in the 1990s, when they had their Department of Justice blackmail residential mortgage lenders into issuing home loans to Democrats who could never, ever afford to pay them back. Welcome the 2007-2008 Great Recession! Under their co-pResidency, remember, the number of subprime mortgages in the US tripled.

That earlier blackmail effort was led by “Waco” Reno’s right-hand man at DOJ, Eric Holder. Years later, the Democrats would reward Holder’s blackmail efforts by making him the chief law enforcement officer of the United States. What a country!

Del Dolemonte on February 8, 2016 at 9:28 AM

cue the next sub-prime crisis

WryTrvllr on February 8, 2016 at 9:28 AM

This story deserves a lot more coverage but it will probably get lost in the fog of the election.

Doesn’t matter at all. Even if there was no election, the MSM would black hole it (which is a racist euphemism, no?).

AUINSC on February 8, 2016 at 9:29 AM

`Stealth ReParations!!

canopfor on February 8, 2016 at 9:31 AM

So if the charges were false, why didn’t Ally fight them? They should have gone to the media and flat out charged the Obama administration with extortion.

Ward Cleaver on February 8, 2016 at 9:32 AM

Not sure why anyone would be surprised about this. This is exactly the kind of behavior that Warren, Obama and other Community organizers are taught to do from day one.

Johnnyreb on February 8, 2016 at 9:33 AM

Next up: Ally Banks will be closed down via eminent domain in order to build more CFPB and IRS offices.

vnvet on February 8, 2016 at 9:33 AM

Ward Cleaver on February 8, 2016 at 9:32 AM

And you were gonna’ cover the expenses and keep them solvent throughout the case, right?

cozmo on February 8, 2016 at 9:34 AM

Congress is supposed to have the power of the purse. CFPB is not funded via Congress. Therefore it is unconstitutional.

And what it is doing is basically reparations by another means, with a healthy cut for big government. It’s an agency that needs to be closed down.

rbj on February 8, 2016 at 9:37 AM

Just another shakedown giveaway for African Americans ultimately at the expense of everyone else.

All part of black privilege.

Chessplayer on February 8, 2016 at 9:39 AM

Isn’t this how Jesse Jackson and Al Sharpton built their empires and got rich? I’m not a fan of a lot of lawsuits anyway. Multimillion and even billions paid out in bogus lawsuits, like the Erin Brokovich one, or the silicone breast implants, or the Ecuador Chevron case, and on and on.

With racial cases, it’s baseless squared. I think of the Texaco case, from wiki:

In 1996, Texaco paid over $170 million to settle racial discrimination lawsuits filed by black employees at the company. It was the largest racial discrimination lawsuit settlement in the U.S. at the time, and was particularly damaging to Texaco’s public relations when tapes were released containing ethnic slurs used repeatedly by company officers at high-level corporate meetings.

As I recall, there was an executive on tape laughing about the “black jelly beans at the bottom of the bag”. This was the same verbiage they learned at mandatory “diversity training” sessions, where blacks were likened to black jelly beans at the bottom of the bag. This was the ethnic slur. It’s all such a scam.

LashRambo on February 8, 2016 at 9:40 AM

I’m Hispanic who has a car loan with Ally, they’ve been nothing but awesome and my rates beat out my own Credit union.

the CFPB needs to be nuked from orbit, twice, then razed and the soil salted & stoned…

….then maybe nuked from orbit again.

Rogue on February 8, 2016 at 9:40 AM

Reparations by any other name….

Make no mistake, it’s always been about the money to Barry and his friends.

iosivich on February 8, 2016 at 9:41 AM

…yes…so?…what else is new?

JugEarsButtHurt on February 8, 2016 at 9:42 AM

All according to the plan…

Until someone pushes back, like the ones being Blackmailed, this will continue…they have no will to fight.

Expect NO HELP from the GOPe as they are scared to death themselves and are totally cool with this.

And make no mistake, there is PLENTY they could do…but will upset the RINO applecart

Please move along….

winston on February 8, 2016 at 9:43 AM

So if the charges were false, why didn’t Ally fight them? They should have gone to the media and flat out charged the Obama administration with extortion.

Ward Cleaver on February 8, 2016 at 9:32 AM

iirc, and I may be thinking of something else, similar to the john doe investigations in WI they were forbidden by law from talking about it during the process.

dmacleo on February 8, 2016 at 9:43 AM

So far, Obama’s Consumer Financial Protection Bureau has reached more than $220 million in settlements with several auto lenders since the agency launched its anti-discrimination crusade against the industry in 2013. Several other banks are under active investigation.

So, the CFPB has collected extorted $200 million from lenders based on fraudulent statistics. Where did the money go? Into the government’s coffers? Since Ally didn’t have any customers who complained, there isn’t any customers to give a settlement payment payoff to.

GAlpha10 on February 8, 2016 at 9:45 AM

So if the charges were false, why didn’t Ally fight them? They should have gone to the media and flat out charged the Obama administration with extortion.

Ward Cleaver on February 8, 2016 at 9:32 AM

Even if Ally were to fight the charges and win, there are probably a lot of legal/regulatory related things the Obama administration could do a lot to make their lives miserable afterward.

Remember, we’re living in a soft authoritarian oligarchy right now with a veneer of democracy on top. We’re little different than, say, Ecuador.

Doomberg on February 8, 2016 at 9:47 AM

So if the charges were false, why didn’t Ally fight them? They should have gone to the media and flat out charged the Obama administration with extortion.

Ward Cleaver on February 8, 2016 at 9:32 AM

I suppose they paid because that’s how the game is played. You just pay these racial cases. On a smaller scale, I can think of two racial cases brought in Cincinnati recently. Last year a black motorist with thousands in drug money and a pound of pot in his car was stopped for a missing front license plate. He also had no driver’s license. When the cop leaned in to turn off the ignition, he took off. The cop, fearing he’d be dragged to death, shot him dead. Cop is up for first degree murder. Family of the guy killed got $5 million. A couple of years ago, an 18 year old black student kept approaching cops after being told to stay back. They tazed him. He died of a heart attack. He’d been tazed the previous year for similar behavior. His family got $2 million.

For some reason, people don’t fight these racial cases, and the people who file these cases know this. That’s how the game is played.

LashRambo on February 8, 2016 at 9:49 AM

This is banana republic type crap right here. Goonish strongarm tactics better found in places like Russia or Venezuela.

I’m so ashamed by the conduct of my government these days.

Defenestratus on February 8, 2016 at 9:50 AM

Jobs…

There is more to this charge against Ally Bank than racial discrimination…

Think about all the jobs that would be lost if ALL banks went digital like Ally…

The ‘King’ cannot allow all this job loss/labor/cost-cutting through innovation in the banking industry….the banks pay some of the highest property taxes through owning the most expensive/best improved real estate, so eliminating the need for physical buildings MUST NOT happen under a ‘kingship’ rule….

Mcguyver on February 8, 2016 at 9:54 AM

Here’s a surprise: documents selectively leaked by a House committee whose members take in millions of dlars a year from the financial services industry release a report critical of an agency that aims to prevent the financial services industry from ripping off consumers and an unapologetically right-wing newspaper of dubious journalists merit casts it in a way calculated to rile the resentful white folk of the American right.

Here’s another surprise: you’re being played by Wall Street but you’re too stupid to figure it out.

urban elitist on February 8, 2016 at 9:56 AM

Remember, we’re living in a soft authoritarian oligarchy right now with a veneer of democracy on top. We’re no different than, say, Ecuador any other oligarchy.

Doomberg on February 8, 2016 at 9:47 AM

There, corrected that for you.

You are welcome.

Mcguyver on February 8, 2016 at 9:59 AM

Using zip code is not innacurate. The census exists.

libfreeordie on February 8, 2016 at 9:59 AM

This administration and its goons are an organized crime syndicate.
No difference.

“Nice business ya got there….hate to see something happen to it.”

Mimzey on February 8, 2016 at 9:59 AM

Odd you don’t see real stories of predatory and discriminatory lending practices engaged in by Warren Buffet’s mobile home /trailer business.

MistyLane on February 8, 2016 at 9:59 AM

Here’s another surprise: you’re being played by Wall Street the ‘King’ but you’re too stupid to figure it out.

urban elitist on February 8, 2016 at 9:56 AM

There, corrected that for you.

You.

Are.

Welcome.

Mcguyver on February 8, 2016 at 10:01 AM

Odd you don’t see real stories of predatory and discriminatory lending practices engaged in by Warren Buffet’s mobile home /trailer business.

MistyLane on February 8, 2016 at 9:59 AM

Much, much closer to the truth.

Mcguyver on February 8, 2016 at 10:02 AM

These are exactly the type of events that have caused the US to slip from 6th to 11th place in terms of economic freedom in the world over the past 7 years.

Sad.

Unfortunately Left-wing voters don’t even know what “economic freedom” actually is, let alone are able to appreciate its value to all citizens, especially lower income families.

visions on February 8, 2016 at 10:02 AM

Remember, it’s Settled Science…. right?

stuartm80127 on February 8, 2016 at 10:03 AM

This is just insane.

On average, these disparities are expected to cost over 213,000 consumers $192 each over the full life of the loan, totaling over $41 million in possible direct damage…
http://financialservices.house.gov/uploadedfiles/october_17_2013_draft_decision_memorandum_authorization_to_seek_a_settlement_with_ally.pdf

“Expected” and “possible” is it? Not realized or happened.

Patriot Vet on February 8, 2016 at 10:03 AM

Using zip code is not innacurate. The census exists.

libfreeordie on February 8, 2016 at 9:59 AM

You mean my private gated community with no rapid transit within 50 miles has a zip code.

Get out of here. I am moving.

HonestLib on February 8, 2016 at 10:03 AM

To the left there is only winning, no God, no right and wrong. Just get the capitalist money.

deptofredundancydept on February 8, 2016 at 10:05 AM

If the government is acting like in Game of Thrones, can we respond in kind?

Nutstuyu on February 8, 2016 at 10:05 AM

The same media that ignored Fast and Furious, Lois Lerner, Gibson guitars, and immigration violations, that treasonous fifth column?

antipc on February 8, 2016 at 10:07 AM

So if the charges were false, why didn’t Ally fight them? They should have gone to the media and flat out charged the Obama administration with extortion.

Ward Cleaver on February 8, 2016 at 9:32 AM

Even if Ally were to fight the charges and win, there are probably a lot of legal/regulatory related things the Obama administration could do a lot to make their lives miserable afterward.

Remember, we’re living in a soft authoritarian oligarchy right now with a veneer of democracy on top. We’re little different than, say, Ecuador.

Doomberg on February 8, 2016 at 9:47 AM

Because it usually costs several multiples more to defend against the unlimited resources of the government than to just settle agree to the extortion. I know from personal experience.

Nutstuyu on February 8, 2016 at 10:09 AM

New Car Justice!

Because people who have bad credit, no job and are poor loan risks deserve a new car!

-Paid for by Obama Friends for Race Hustling, Unrest and Money Grabbing

darwin on February 8, 2016 at 10:12 AM

If the government is acting like in Game of Thrones, can we respond in kind?

Nutstuyu on February 8, 2016 at 10:05 AM

Resist.

And,

then,

Crap,

all over them.

Mcguyver on February 8, 2016 at 10:13 AM

the feds made it clear to them that the investigation into the racial bias charges was being looked at as part of the approval process. 

Gee. That’s a really nice bidness you got there. It be a shame if anything happened to it.

This isn’t an administration. It’s thugocracy. I despise these pukes. Absolutely despise them…

Oh. And you can thank those scheming puke parasites Dodd & Frank for the consumer financial protection bureau.

locomotivebreath1901 on February 8, 2016 at 10:13 AM

No one should be surprised, this is what community organizers do……agitate and shakedown

Privatize It on February 8, 2016 at 9:27 AM

Yes, this is just Obama being Obama.

As a lawyer in Chicago, he sued Bank of America for not making enough mortgage loans to unqualified minority borrowers.

As a senator and later president, he supported the multi-billion-dollar “reparations” scam known as the Pigford settlement — in which thousands of blacks received $50,000 checks from the U.S. Treasury for submitting affidavits that said they once thought about farming.

Obama has always been a race-baiting shakedown artist. This is just more of the same. As always, the media will ignore it or rationalize it away, and the LIVs who make up Obama’s base will remain as clueless as they have always been.

AZCoyote on February 8, 2016 at 10:15 AM

Here’s another surprise: you’re being played by Wall Street but you’re too stupid to figure it out.

urban elitist on February 8, 2016 at 9:56 AM

So I take it you have no facts to counter the charge in the article.

The Schaef on February 8, 2016 at 10:21 AM

To the left there is only winning, no God, no right and wrong. Just get the capitalist money.

deptofredundancydept on February 8, 2016 at 10:05 AM

Plus unreasoning hatred and a lust for destruction. Less out of a genuine belief that Utopia will create itself spontaneously upon the ruins than a simple desire to kill and destroy.

My mother used to say that the problem with robbing Peter to pay Paul is that sooner or later, Peter goes broke, at which point Paul blames you. And Paul can be a nasty b******d when he doesn’t get what he wants.

This is similar to Thatcher’s Law: “The problem with socialism is that eventually socialists run out of other peoples’ money to spend”.

Socialism cannot survive without capitalism, because socialism cannot do anything efficiently except kill. It needs capitalism to feed upon to sustain itself.

Failing that, it needs war and conquest to feed itself by looting by more direct means.

The likes of UE are in favor of it because they believe that they will always be on top, and therefore be the beneficiaries of the robbery.

It never works out that way. History is replete with records of why not.

But progressives never believe that history applies to them.

clear ether

eon

eon on February 8, 2016 at 10:21 AM

No one should be surprised, this is what community organizers do……agitate and shakedown

Privatize It on February 8, 2016 at 9:27 AM

Yup. This is not new. They have been shaking down banks for decades with fake charges of racism.

A friend had a mortgage territory in Northern Minnesota. Even though their % of loans to minorities was higher than the actual population % of minorities in her area, her bank had to give her bits and pieces of territory in Chicago to get her numbers high enough to avoid a federal lawsuit. *smh* Such nonsense…

Fallon on February 8, 2016 at 10:23 AM

you’re too stupid to figure it out.

urban effetist on February 8, 2016 at 9:56 AM

Awfully early to start with the Alinsky ad hominems, isn’t it?

I’m certainly not stupid; I based my post at 9:28 AM on my prior experience (almost 40 years now) in the residential real estate mortgage sector; I witnessed first-hand how the Clintons, Reno and Holder shook down the lenders in the late 1990s in the name of “racial equality”.

I was also there in the mid 2000’s, when President Chimpy Bush pleaded and begged with the Democrats who ran the Senate Banking Committee to reign in the out-of-control lending those Democrats started, in the name of “equality”. Chris Dodd and Barney Frank laughed in his face, and told him absolutely nothing was wrong. We all know what happened next.

And I’m not just citing personal anecdotal evidence; I have many contacts high up in not only the lending industry but also the Feds who oversee them, as well as contacts in other sectors of the mortgage industry who also tried to warn your Democrats they were driving the economy off the cliff.

That includes contacts in the real estate sales and rental industry, as well as many peripheral players in that industry, such as the land surveyors who do the plot plans, the appraisers who tell the lender whether or not the property is worth lending on, the title search people who make sure the property has a clear title, and so on. They’ve all told me the exact same story, and many of them are not Republicans.

All of us are not lying. But the fact that you’re willing to lie to yourself to avoid facing the awful economic reality that your Democrats own is perfectly understandable!

F-

Del Dolemonte on February 8, 2016 at 10:23 AM

Using zip code is not innacurate. The census exists.

libfreeordie on February 8, 2016 at 9:59 AM

Epic Fail.

Using zip codes most certainly CAN be inaccurate, thanks to the new concept the US Postal Service has imposed in recent years, something they call “USPS Standardizing Addresses”, a means to allegedly “accurately” determine the exact and correct location of a property. It’s shown itself to be a joke in many cases.

The easiest example? When a single zip code is shared by more than one town.

Here in New Hampshire, we have many cases where more than one town use the very same zip code. I even know of a case less than 15 miles away from me where 3 towns share the same zip code. And these 3 towns aren’t tiny towns, each has a population of between 5,000 and 10,000 people.

USPS has a website where you can enter a property address and hit submit, and you will get the “correct” result for where that address is, according to the US Postal Service. But when you run into a situation like I describe above, where a single zip code is shared by more than one town, the USPS will regularly put the “correct USPS Standardized address” several miles away from where that property’s real location is.

And I notice you mention the word “census”. Ever heard of “census tracts”? Believe me, those aren’t all totally accurate either.

F-

Del Dolemonte on February 8, 2016 at 10:33 AM

The Federal Government is voracious, needing trillions of dollars a year to operate, and the Obama Regime isn’t shy about stealing money from people and businesses to fund it. All these race-based Obama lawsuits are really thin on evidence yet for billions of dollars in fines. A fine collection of thieves.

waelse1 on February 8, 2016 at 10:36 AM

The initial accusations against Ally certainly sounded pretty damning, painting a picture of a company which systematically discriminated against minority loan applicants. If true, that’s obviously cause for action by the federal government.

Why?

That is the type of “conservative” thinking that says Big Government is okay as long as it’s our guy in the driver’s seat.

JoseQuinones on February 8, 2016 at 10:48 AM

Are we talking about Ally Bank, the former GMAC, a huge car loan business before it was renamed and now does 100% of its business online?

ExpressoBold on February 8, 2016 at 10:58 AM

‘Explain this one away’?

I’m sure a statement similar to this is forthcoming:

“There is not a smidgeon of corruption in our shakedown, er, CConsumer Protection Rackets. Nothing to see here, move along.”

Press dutifully leaves.
Case closed.

ghostwalker1 on February 8, 2016 at 11:00 AM

Del Dolemonte on February 8, 2016 at 10:33 AM

Indeed, Del. I was perplexed once by a mailing address after building a home. I asked the Post Office about it and was informed that the address was due to what 911 response area I was in, not the actual city in which the house was located. That was of no comfort because the zip/city in the address was IN ANOTHER COUNTY.

ghostwalker1 on February 8, 2016 at 11:04 AM

So if the charges were false, why didn’t Ally fight them? They should have gone to the media and flat out charged the Obama administration with extortion.

Ward Cleaver on February 8, 2016 at 9:32 AM

1) Ally Bank is what used to be GMAC. It got a federal bank charter almost literally at midnight in December 2008 so it could get a boatload of TARP money to stay afloat – part of the Administration’s plan to keep General Motors from declaring bankruptcy. GM still owned 49% of GMAC at the time. It gave up its share to the government when the bank charter was granted (illegally, IMO – that’s a whole other thing that needs to be investigated, there is no way GMAC met the capital requirements for a bank charter at that time but they got one anyway. But neither did Goldman Sachs or Morgan Stanley.)

2) That’s right, the government actually OWNED part of Ally for a couple of years until it was able to get itself righted and pay the government back for its shares.

3) The bank charter was granted for only 6 years and was due to expire at the end of 2014.

So the government had Ally by the short hairs and there was nothing it could do but settle this ridiculous lawsuit.

One of the worst aspects of these actions by the CFPB is that the Dodd-Frank Act specifically exempted auto dealers from the jurisdiction of the CFPB. So they got around that by going after the lenders who bought the loans made by the dealers.

There’s a longstanding concept called “assignee liability” in lending that says the buyer of a loan is not responsible for any bad acts committed by the originator of the loan. The CFPB just threw this out the window, in addition to its use of a bogus racial identification model and the bogus concept of disparate impact to bust lenders when no consumers have actually claimed discrimination.

This agency is a monster that needs to be stopped.

rockmom on February 8, 2016 at 11:04 AM

Using zip code is not innacurate. The census exists.

libfreeordie on February 8, 2016 at 9:59 AM

I’m disparately impacted by your stupid, liberal posts. Send me money or I’ll ruin you.

LashRambo on February 8, 2016 at 11:15 AM

Does anyone know who actually received the money/fines? Was it the federal govt or individuals who were allegedly discriminated against?

hopeful on February 8, 2016 at 11:15 AM

Del Dolemonte on February 8, 2016 at 10:23 AM

Your facts are wrong. Most of the subprime mortgages that blew up were written in 2003-2006. It was when their two-year introductory rates re-adjusted (on houses whose price had been driven up in the bubble) that many of them became unaffordable and borrowers began defaulting in large numbers.

If you get on the Wikipedia subprime mortgage crisis article, you’ll find a cute little graph from the Financial Crusis Inquiry Commusdion Report showing 1) subprime mortgage lending ’96-’00 averaged around $100 a year v. $550+b ’04-’06; the sub-prime share of the total mortgage market more than doubled between the two time periods and 3) the proportion of sub-prime mortgages that were securitized — meaning the originators were able to bank their fees and then pass the risk to someone else, meaning they had no incentive to investigate the credit-worthiness of borrowers — expanded dramatically. That is, more sub-prime loans were securitized and sold off in 2005 than were written, period, in the last five years combined of the Clintin administration.

That has nothing to go with this report, which proves none of the allegations aired here save that there was a discussion of methods and litigation risks which seems fairly standard.

PS: why did the sum of sub-prime loans grow 600% during the Bush years? Hint: not the CRA. It was because Wall Street developed an insatiable hunger for securitized mortgages.

urban elitist on February 8, 2016 at 11:17 AM

urban elitist on February 8, 2016 at 11:17 AM

It is in fact you who have the facts wrong, the CRA and the Democrats are the root, owner and complete cause of the housing bubble collapse.

Your willful blindness to this doesn’t change that, and it never will.

Rogue on February 8, 2016 at 11:28 AM

Using zip code is not innacurate. The census exists.

libfreeordie on February 8, 2016 at 9:59 AM

Of course you’re racist enough to believe that all the black people live totally within one zip code.

But progressives never believe that history applies to them.

eon on February 8, 2016 at 10:21 AM

Slight fix. They really don’t believe that history is relevant at all. Hence, their insistence on repeating it.

GWB on February 8, 2016 at 11:30 AM

Just another shakedown giveaway for African Americans ultimately at the expense of everyone else.

All part of black privilege.

Chessplayer on February 8, 2016 at 9:39 AM

Hmmm… seems to me that there weren’t any actual complaints of discrimination, so I’m not sure how it is a giveaway to African Americans at all. Probably those who are supposedly benefiting from this lawsuit have no idea that it was even filed.

theblackcommenter on February 8, 2016 at 11:37 AM

It is in fact you who have the facts wrong, the CRA and the Democrats are the root, owner and complete cause of the housing bubble collapse.

Your willful blindness to this doesn’t change that, and it never will.
Rogue on February 8, 2016 at 11:28 AM

Explain, then, why sub-prime lending leaped six-fold during the Bush era (with no changes to the CRA and, presumably, less regulatory pressure from a Republican Administration) and how the majority of the sub-prime mortgages that were issued by non-bank entities (not subject to the CRA) were the product of CRA-related pressure. Explain, too, who held a gun to Walk Street’s head and told them to buy a trillion dollars worth of mortgage-backed derivatives.

You have no facts. Just dogma.

urban elitist on February 8, 2016 at 11:40 AM

Are we talking about Ally Bank, the former GMAC, a huge car loan business before it was renamed and now does 100% of its business online?

ExpressoBold on February 8, 2016 at 10:58 AM

That would be the one, fairly recently it was also the major holder of TARP funds which hadn’t been repaid.

agmartin on February 8, 2016 at 11:42 AM

But instead of having to stand before a judge they were able to twist the bank’s arm and get them to cave in and pony up the cash. This department was the brainchild of Elizabeth Warren and there were plenty of concerns expressed by conservatives when it was summoned into existence as I’m sure most of you recall.

This is why Warren doesn’t have to run for President.
She is getting what she wants through the Exec and Congress anyway, without anywhere near the same scrutiny and pressure.
Probably “earns” as much as she could in the WH too.

However, she might run as the womyn’s candidate if drafted.

AesopFan on February 8, 2016 at 12:27 PM

The trouble is with the Obama and Clinton administrations is that so much corruption gets LOST in the election, or other news cycle. Their crimes do pay, because they never get prosecuted, tried and sent to the slammer, and instead they get their painting on the wall and a fat government check. That is the great sadness, and the country’s hatred, of Washington.

leader4hru on February 8, 2016 at 12:34 PM

Isn’t this how they’ve been funding Black Lives Matter this whole time?

Iblis on February 8, 2016 at 12:54 PM

CFPB tried to ID race by last name and ZIP code

Isn’t that like racial profiling?

Marcola on February 8, 2016 at 1:09 PM

Once again, where is Congressional oversight on this scam? Let’s never forget, the Congress Critters have keep Freddie Mac and Fanny Mae going despite the fraud going on there. They had a chance to pull the plug but allowed the Democrats in cajoling them into keep them going. This scam has been going on for way too long.

Next question? Who gets this money? Is it going into, yet another, Democrat slush fund?

bflat879 on February 8, 2016 at 1:27 PM

NO use in arguing with UE – he doesn’t know anything other than the specific articles his handlers have given him. When he responds to Dolemonte that will be interesting.

What he fails to acknowledge, because it destroys any type of defense he has, is the impact of Freddie and Fannie in the housing market, how they distorted loan originations and compelled the entire mortgage industry into some not very good habits. Oh,and all of these loans were impacted by the CRA and the subsequent updated regs that pushed home ownership, by the GOP because they wanted more houses sold and the dems because they wanted something else to cry racism about.

Were there some slimeball originators out there – sure. What created the environment for them to flourish? The feds. The GOP only woke up belatedly when the office responsible for regulating (kind of as it turned out) F&F discovered that from an underwriting perspective their balance sheets sucked. That is when Dodd and Frank ran interference with some of the largest originators – Countrywide being one of them if I remember correctly – paying them off to keep the gravy train running. Dodd decided to retire before his whole sordid affair got too much play.

Zomcon JEM on February 8, 2016 at 1:30 PM

And of course this resulted in F&F looking for better paper to deal with the crappy stuff they had after the whole thing blew up in 2008/09. This resulted in very low interest loans to superior credited rated buyers who were very well off. The govt was essentially underwriting my ability to a get a very low interest loan. So a program to ostensibly support home ownership for people for whom that might be difficult morphed into a taxpayer funded program to help rich people get lower rates and better houses.

What a deal!! Thank you Obama. More money in my pocket!! Cronies continued to be bought and paid for!! Big bad banker targets left there for us to rail against!! That is the dem playbook.

Zomcon JEM on February 8, 2016 at 1:43 PM

(with no changes to the CRA and, presumably, less regulatory pressure from a Republican Administration)

urban elitist on February 8, 2016 at 11:40 AM

You presume too much. Bush frequently touted his bona fides as a “home ownership” president.

It’s funny, really, how one crows “no facts, just dogma” and then starts his line of questioning right out of the gate with an unfounded presumption contradicted by the facts.

The Schaef on February 8, 2016 at 1:58 PM

I am bothered by the principle of this, but the actual victims of this case were once known as GMAC, and as such earn not one iota of sympathy from me.

Rusty Nail on February 8, 2016 at 2:32 PM

Obama’s little dictatorship. People are afraid to say it, but I’ll say it.

grumpyank on February 8, 2016 at 3:40 PM

American business needs to draw a lesson from this:

Do not trust the government. Government agencies are engaged in a conspiracy to violate the law and your rights. They will blackmail and extort you in order to: fill government coffers; line the pockets of government officials; and enrich their political cronies.

Picaro on February 8, 2016 at 3:41 PM

Just another Obama-run “Protection Racket”…

landlines on February 8, 2016 at 11:24 PM