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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.

Derrick Lewis - Youth & College Hero

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