Providence, RI is suing the mortgage company Banco Santander SA. They say Santander is red-lining.
Banco Santander SA’s U.S. unit was sued by the city of Providence, Rhode Island, over claims it stopped issuing mortgages in minority neighborhoods after the housing bubble burst, the latest in a series of discrimination lawsuits against lenders by U.S. cities and counties.
Santander Bank, previously named Sovereign Bank, pulled out of the neighborhoods and focused on white communities after being acquired by the Madrid-based lender in 2009, according to a complaint filed today in Providence federal court. The suit seeks millions of dollars in damages.
Providence’s case basically states that this one bank is not lending to people who want to buy a home in certain neighborhoods, which the city is labeling “minority neighborhoods”. The city says that because this one lender isn’t lending to people who want to buy homes in these neighborhoods, that housing prices are stagnant and their incoming property tax revenue is stagnant, and the city’s tax coffers aren’t filling up the way they’d like them to.
You know, I know that the fed is basically giving away money to mortgage lenders to loan out and make profit from lending fees and interest on, but you would have to be a fool to be in the mortgage business. The sheer amount of regulations and bad loans you have to make would flat-out send me to the funny farm in a week.
I don’t like making small loans to friends and relatives, let alone someone with a credit score under 700.
I’d really like to see their evidence to see if they are telling even a smidgeon of the truth or if they are just lying with statistics and hoping to get an ignorant bench.