HOME  |   STATS  |   PUBLICATIONS  | REGISTER  | ADVERTISE   CONTACT US  |  SEARCH  


  ORDER YOURS TODAY! 


 


"A Must-Read
For Marketing
Professionals"

Introducing a new trade magazine for the new opportunities in African-American marketing and media.


Click here for advertising information

Click here to subscribe
_________________


 Departments        
Advertising & PR News
Marketing News
TV & Cable News
Radio News
Magazine News
Newspaper News
Internet News

Retailing News
Consumer Research

Expenditure Data
People in the News
Industry News
Company Bios and
  Background


 Register Here       
STAY IN-THE-KNOW!
Are you getting the latest industry news when it happens via e-mail
?



Click here for free delivery of the Target Market News Bulletin
You'll receive news of breaking stories, exclusives, updates and headlines on the latest developments in African American marketing and media

 Black Stats          
Frequently requested data on African American consumers

Black Buying Power:
  $719 Billion (2005)

Black U.S. Population:
  38.3 million

Top Five Black Cities
  - New York
  - Chicago
  - Detroit
  - Philadelphia
  - Houston

Top Five Black Metros:
  - New York-New Jersey
  - Washington-Baltimore
  - Chicago-Gary
  - Los Angeles
  - Philadelphia

Top Five Expenditures:
 - Housing $110.2 bil.
 - Food $53.8 bil.
 - Cars/Trucks $28.7 bil.
 - Clothing $22.0 bil.
 - Health Care $17.9 bil.

Click here for more stats from "The Buying Power of Black America."
______________________
Get quick access to key
U.S. Census 
Bureau Data

Click here to go to African-American Census Bureau data

_____________________


Copyright
(c) 2007 by
Target Market News Inc.

All rights reserved
Business address:
228 S. Wabash Ave.
Suite 210
Chicago, IL 60604
t. 312-408-1881
f. 312-408-1867
info@targetmarketnews.com
 
 

NAACP mortgage class action against WaMu, Citi, GMAC, others is fast tracked

(March 11, 2008) The NAACP and lead counsel Brian Kabateck filed papers Friday, March 7, that will fast track their federal class action lawsuit against Washington Mutual, Citi, GMAC and 15 other mortgage firms who systematically steered African American borrowers into predatory loans.

"The victims in this case had the same credit, the same income and the same qualifications as the lenders' other customers. The only difference was the color of their skin. That's why they were stuck with abusive loans," said Kabateck, Managing Partner of Kabateck Brown Kellner, LLP.

"Quickly resolving this case is essential for victims who have ruined credit and who are losing their homes. This isn't just about justice for the victims. This case is about making sure that this kind of discrimination is stamped out for good," said NAACP General Counsel Angela Ciccolo.

The defendants in this case are CitiMortgage, Suntrust Mortgage, GMAC Rescap, JP Morgan, National City, First Horizon, Ameriquest Mortgage Company, Fremont Investment & Loan, Option One Mortgage Corporation, WMC Mortgage Corporation, Long Beach Mortgage Company, BNC Mortgage, Accredited Home Lenders, Bear Sterns Residential Mortgage Corporation, Encore Credit, First Franklin Financial Corporation, HSBC Finance Corporation and Washington Mutual, Inc.

This suit is the first to have ever charged so many major mortgage lenders with racial discrimination.

The suit is supported by a wealth of government and other research:

-- A 2008 study by United for a Fair Economy finds cites federal data showing people of color are more than three times more likely to have subprime loans: high-cost loans account for 55% of loans to African Americans, but only 17% of loans to Caucasians. The study estimated losses of between $164 billion and $213 billion for subprime loans taken by people of color during the past eight years. This is thought to be "the greatest loss of wealth for people of color in modern US history."

-- A July 2007 report by Freddie Mac (Federal Home Loan Mortgage Corporation) showed that minority borrowers pay higher annual percentage rates on mortgage loans than non-minorities with equal income and credit risk. For instance, in 2005, African American borrowers paid an average of 128 basis points more for loans than their white counterparts. In the subprime market, the difference was even greater -- 275 basis points more.

-- A 2006 Center for Responsible Lending study that found when income and credit risk were equal, African-Americans were 31 percent to 34 percent more likely to receive higher-rate, more expensive subprime loans than Caucasians.

-- The National Community Reinvestment Coalition found in 2006 that lending institutions in six major metropolitan areas were engaged in "pervasive discriminatory and predatory practices" involving high-cost subprime loans to African-Americans.  The metro areas were: Baltimore, Washington, Chicago, Los Angeles, St. Louis and Atlanta.

-- In addition to finding discrimination nationwide, the study found that people of all income levels -- not just low or middle -- were victimized. For example, the study found that in Boston, 73 percent of high income ($92,000 to $152,000 annual salary) African Americans received subprime loans in 2005.

Studies have also shown the "spillover" effect of these loans.

"Home ownership is supposed to build wealth to invest in communities, pay for college and support peoples' retirements. Instead, these predatory lenders have sent their victims spiraling backward into debt and foreclosure," Ciccolo said. "Entire neighborhoods are dragged down when foreclosed homes sink property values, attract crime and reduce the tax base."


Go to Target Market News homepage

 

 14th Edition Now Available!
Latest Buying Power report shows spending up in major categories

The 2007 edition of "The Buying Power of Black America" has just been released by Target Market News. The one-of-a-kind report is the most quoted source of information on how African-American consumers spend their $744 billion in income.

According to the newest edition of "The Buying Power of Black America," there is growth in a number of major product categories despite that slowdown in overall consumer purchases. Get the details by ordering your copy now.

Click here to order The Buying Power of Black
America report


_________________________________________________________________________________________


The African-American
Book Publishing Authority


Now in its ninth year of publication, Black Issues Book Review is the only nationally distributed magazine devoted exclusively to covering the latest news and reviews on black books. BIBR also provides up-to-date news on forthcoming author signings, book fairs and book clubs.
Want this issue? Get it with your new subscription.
Click Here


A TARGET MARKET NEWS PUBLICATION
_________________________


  SUBSCRIBE TODAY! 


The trade publication for
in-depth coverage of Black
Consumer Marketing
and Media news