If it turns out that what they are claiming is true (blacks with identical credit scores and similar situations to whites getting worse loans than those white people), then they absolutely have a case.

That said, I am uncertain as to the scope of this. Do remember that this was a time when banks were handing out mortgages like candy. You didn't even need a job to get a couple hundred thousand for a house from these people because they were just selling your mortgage to someone else up the food chain, so the banks were getting their money regardless of whether that person paid.

At least, until the people up top stopped buying them and the banks got stuck with them.

So, while I am certain predatory lending practices were definitely going on, I think it was for the most part an equal opportunity screwing that was aimed a low (or no) income people rather than blacks specifically.

Check out the This American Life episode, The Giant Pool of Money, that explains this in far more detail. I've linked to both the audio page and the transcript.
Source(s):
www.thisamericanlife.org/extras/radio/355_transcript.pdf
http://www.thisamericanlife.org/radio_episode.aspx?sched=1242


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