Morgan Stanley Sued Over Risky Loans to Black Home Buyers
Bloomberg BusinessWeek (10/16, Van Voris, 1M) reports, "Morgan Stanley was accused in a race-bias lawsuit of urging a home lender to target black borrowers with high-risk mortgages so the bank could profit from buying and securitizing the loans." On Monday, five African-American "Detroit-area homeowners sued Morgan Stanley today in New York for violating civil-rights laws covering housing and credit." The suit alleges Morgan Stanley "encouraged New Century Financial Corp., the bankrupt mortgage company, to make 'combined-risk loans' to borrowers who couldn't pay." These high-interest loans resulted in default and foreclosure.
PD&R Leadership Message Archive
International & Philanthropic Spotlight Archive
Spotlight on PD&R Data Archive
Publications
Collecting, Analyzing, and Publicizing Data on Housing Turnover
Resilience Planning: What Communities Can Do to Keep Hazards from Turning into Disasters
Cityscape: Volume 26, Number 3
Case Studies
Case Study: Former School in Charleston, South Carolina, Transformed into Affordable Housing for Seniors
Case Study: Avalon Villas Combines Affordable Housing and Services for Families in a Gentrifying Phoenix Neighborhood
The contents of this article are the views of the author(s) and do not necessarily reflect the views or policies of the U.S. Department of Housing and Urban Development or the U.S. Government.
Note: Guidance documents, except when based on statutory or regulatory authority or law, do not have the force and effect of law and are not meant to bind the public in any way. Guidance documents are intended only to provide clarity to the public regarding existing requirements under the law or agency policies.