french mortgage lending

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News item: The NAACP today sued a dozen mortgage lenders, alleging that the companies discriminated against blacks by steering them into high-interest, subprime loans while giving more favorable loan terms to white borrowers. The lawsuit, which seeks class-action status, was filed in U.S. District Court in Los Angeles.

The AP via IHT: The NAACP cited studies and public statements attributed to government agencies and other groups that assert blacks have been more likely to receive higher-interest loans than other borrowers.... This caught our eye: ‘The complaint did not include specific examples of borrowers claiming they were the subject of discrimination.’

Here’s a legal question for lawyers tonight: Can you win a lawsuit like this when you’re not alleging damage to any specific individual? Or is this a lawsuit filed in hopes of a settlement? Somebody help us out.

Among the defendants are Ameriquest Mortgage Co., Citigroup Inc., HSBC Finance Corp., all of which defended their lending practices as fair.

Photo Credit: L.A. Times