Judge decertifies class of black mortgage borrowers in light of 'Wal-Mart'

, The National Law Journal

   | 2 Comments

A Boston federal judge has decertified a class of African-American mortgage borrowers, finding that evidence of their statistically higher payments isn't enough to establish commonality in light of the Supreme Court's ruling in Wal-Mart v. Dukes.

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What's being said

  • Try reading the actual text

    "Looking at rates for Option One wholesale loans originated from 2001 to 2007, Ayres found that African-American borrowers spent an average of $134 more per year on their mortgages than SIMILARLY SITUATED white borrowers."

    Once again, pro-discrimination half-wits fail to actually look into the details. No one is disputing the fact that lower FICO score borrowers will have higher rates. What is in question is why similarly situated borrowers are experiencing disparate rates based on race. The Baltimore litigation makes fairly clear that race-based predatory lending was a fairly well understood practice, even if there weren't any official company-wide memos stating that practice.

  • ColorBlindJustice

    It's time for the nation to move once and for all beyond the soft bigotry of disparate impact doctrine. If we're willing to acknowledge so-called achievement gaps and wealth gaps, then certainly we must acknowledge credit score gaps and the cultural realities that drive them. Lenders shouldn't be held liable for the unstable incomes and credit histories of would-be borrowers -- regardless of race.

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