Class Action Lawsuit Originating from Barack Obama Was Instrumental In Creating The Policy Whereby Banks Were Forced To Loan To People Who Could Not Afford Loans

Tuesday, September 04, 2012

Class Action Lawsuit Originating from Barack Obama Was Instrumental In Creating The Policy Whereby Banks Were Forced To Loan To People Who Could Not Afford Loans

Is this Economic Justice, or more Cloward-Piven?

From the Daily Caller:

President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices. 

As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans. 

The startling failure rate among Obama’s private sector clients was discovered during The Daily Caller’s review of previously unpublished court information from the lawsuit that a young Obama helmed as the lead plaintiff’s attorney. [RELATED: Learn about the 186 class action plaintiffs] 

Since the mortgage bubble burst, some of his former clients are calling for a policy reversal. 

“If you see some people don’t make enough money to afford the mortgage, why would you give them a loan?” asked Obama client John Buchanan. “There should be some type of regulation against giving people loans they can’t afford.” 

Banks “were too eager to lend to many who didn’t qualify,” said Don Byas, another client who saw banks lurch from caution to bubble-inflating recklessness.