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Subprime Lending Catastrophe

WHEREAS, African-Americans represent a disproportionate number of homeowners with sub-prime lenders mortgages and many have become and will become victims of the sub-prime lender institutions, are filing bankruptcy, and homes are being foreclosed and

WHEREAS, African-Americans will be disproportionately and economically affected in an adverse manner causing harm to their credit rating and causing them to probably not become a home owner again; and

WHEREAS, we believe that there was a deliberate plan to entice unsuspecting, unknowledgeable home purchasers to secure loans that were set up for failure at the outset; and

WHEREAS, the sub-prime lenders used subliminal predatory lending methods and marketing to entice these non-suspecting African-Americans that were desirous of being home owners with marginal credit; and

WHEREAS, the sub-prime lenders received their profits and high interest rates from these victims and the new mortgage company will resell the property and have major profit gains again with a new set of victims; and

WHEREAS, the African-American victims will be given a IRS form 1099 and have a tax debt for the difference in what is owed to the mortgage and what the property is sold for in a distress sale.

THEREFORE, BE IT RESOLVED, that the NAACP asks the Federal Government to intervene on behalf of the African-American victims as it has done with the sub-prime lenders through non-punitive intervention such as a bailout or debt deferment in the like manner of the sub-prime lenders; and

BE IT FINALLY RESOLVED, that Federal Government provide assistance to these victims that have lost their life savings and homes through unscrupulous practices of financial money market manipulators.