The other side of the suit is that what if these people knew they couldn’t pay back the loans but got them anyway. Isn’t that fraud.
By Chris Isidore @CNNMoney October 15, 2012: 12:09 PM ET
NEW YORK (CNNMoney) — The American Civil Liberties Union sued Morgan Stanley on Monday, charging the Wall Street firm discriminated against minority homeowners and violated federal civil rights laws by providing funding for risky mortgages.
The suit, filed in U.S. District Court in New York, is the first lending discrimination case to go after the investment banks that funded the subprime mortgages. Previous suits of this kind targeted the lenders that made the loans.
Wall Street funded the subprime lending boom by bundling the risky loans into mortgage-backed securities. Those securities were then sold to institutional investors and pension funds.
The lawsuit was filed on behalf of five Detroit residents, and asks the court to certify the case as a class action.
“With this lawsuit, real victims of the subprime lending scandal are stepping forward to hold investment banks like Morgan Stanley accountable for the devastation the banks wrought in their lives and in our economy,” said Anthony Romero, ACLU executive director, in a statement.
Morgan Stanley (MS, Fortune 500) denied the allegations.
“We believe these allegations are completely without merit and plan to defend ourselves vigorously,” said the firm in a statement.
Romero said Morgan Stanley is not the only Wall Street firm that participated in funding improper subprime mortgages and that similar suits against other firms could be forthcoming.
Wouldn't you be embarrassed to overpay by $100,000? Only fools buy houses without knowing neighborhood values. Don't be a fool. Don't suffer the pain of an underwater mortgage. The surest way to lose your house is to overpay for it. Our reports identify overvalued and undervalued neighborhoods. Use it to broaden or narrow your search area. Savvy buyers work with us to find bargains. We've saved thousands from financial ruin. Let us save you too. If you want peace of mind while shopping for your next home, sign up for our monthly market newsletter.
We're sorry, but it seems that we're having some problems loading MLS # P837414 from our database. Please check back soon.
Proprietary OC Housing News home purchase analysis
$565,900 …….. Asking Price
$565,900 ………. Purchase Price
10/8/2012 ………. Purchase Date
$0 ………. Gross Gain (Loss)
($45,272) ………… Commissions and Costs at 8%
($45,272) ………. Net Gain (Loss)
0.0% ………. Gross Percent Change
-8.0% ………. Net Percent Change
#NUM! ………… Annual Appreciation
Cost of Home Ownership
$565,900 …….. Asking Price
$113,180 ………… 20% Down Conventional
3.40% …………. Mortgage Interest Rate
30 ……………… Number of Years
$452,720 …….. Mortgage
$108,103 ………. Income Requirement
$2,008 ………… Monthly Mortgage Payment
$490 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$141 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$153 ………… Homeowners Association Fees
$2,793 ………. Monthly Cash Outlays
($310) ………. Tax Savings
($725) ………. Equity Hidden in Payment
$119 ………….. Lost Income to Down Payment
$91 ………….. Maintenance and Replacement Reserves
$1,968 ………. Monthly Cost of Ownership
Cash Acquisition Demands
$7,159 ………… Furnishing and Move In at 1% + $1,500
$7,159 ………… Closing Costs at 1% + $1,500
$4,527 ………… Interest Points
$113,180 ………… Down Payment
$132,025 ………. Total Cash Costs
$30,100 ………. Emergency Cash Reserves
$162,125 ………. Total Savings Needed
The property above is available for sale on the MLS.Contact us for a comparative market analysis, a cost of ownership analysis, or information on how you can make an offer today!
Cost of Ownership AnalysisAre you ready to make an offer, but you are worried the cost of ownership is really more than you can afford? Don't make a mistake that might cost you the family home, your life savings, and your good credit! Get the advice of a seasoned professional. Contact us at firstname.lastname@example.org today! We produce detailed reports showing the cost of ownership based on the most likely transaction price and current financing terms. You will know how much you will spend each month in out-of-pocket expenditures and the true monthly cost of ownership factoring in tax deductions, loan amortization, and opportunity costs on your down payment. In addition, we show you how this cost compares to a rental of equal quality to make sure buying is the right decision for your situation. An OC Housing News Cost of Ownership Analysis will calm your worries and give you peace-of-mind. Let us show you the way! Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at email@example.com, and we will prepare the reports for you.
OC Housing News FREE Guides!
Nearby ForeclosuresGain a competitive advantage over other buyers. By locating distressed properties -- before they hit the MLS -- you can discover where tomorrow's REOs and short sales will appear. Most of these properties are not listed on the MLS, but they will be soon. Research properties in advance and get a jump on your competition. Don't miss out on another deal because you couldn't act quickly. Use this tool to your advantage! The red properties are already bank owned. As soon as REO asset managers prepare them for sale, they will be on the MLS. Get ready! The green and blue properties have owners who are not paying their mortgages. They may be offered as short sales, or they may go through foreclosure and become REO. Either way, they will also likely be available on the MLS soon. Find your next home! Be prepared to offer on these properties by researching them in advance or risk losing out to buyers who are have done their homework. Start your research today! To find distressed properties, enter your desired location and press search. Scroll through list by pressing "next."
Comparative Market AnalysisAre you ready to make an offer, but you are worried you will either (1) underbid and miss the property or (2) overbid and pay too much? Don't make a mistake and miss your dream home, or worse yet, overpay for it! Get the advice of a seasoned professional. Contact us at firstname.lastname@example.org today! Are you thinking about selling, but you are worried you will either (1) overprice and fail to sell or (2) underprice and leave money at the negotiating table? We are the experts in real estate valuation. Work with us to set the right prices to sell your property quickly for the largest amount possible. Let us show you what your property is worth today! An OC Housing News Comparative Market Analysis will calm your worries and give you peace-of-mind. See for yourself right now! Reports are available for properties in the Southern California MLS coverage area, and are generally delivered within 24-72 hours. If you wish to receive multiple properties, please contact us at email@example.com, and we will prepare the reports for you.