A LITTLE DEBUNKING

Yesterday, a winger on Politico linked to this YouTube video as evidence that affirmative action was behind the sub-prime mortage mess. I went to LexisNexis and found this newspaper report about the incident:

AccuBanc settles mortgage discrimination case
The Houston Chronicle
April 04, 1998, Saturday 3 STAR EDITION
SOURCE: From staff and wire reports
SECTION: BUSINESS; Pg. 1
LENGTH: 717 words

The Department of Housing and Urban Development said Friday it had reached a record $ 2.1 billion settlement with a Dallas mortgage lender accused of discriminating against minorities.

The accord with AccuBanc Mortgage Corp., which has five offices in Houston, marks the largest settlement in U.S. history for alleged mortgage lending discrimination.

The settlement involved cases in Dallas and Tarrant counties and was in response to complaints filed by the Fort Worth Human Relations Commission and the Dallas Fair Housing Office, said Peggy Johannsen, spokeswoman for the housing department.

After receiving complaints, AccuBanc's treatment of customers was tested by whites and minorities posing as applicants for home mortgage loans.

One test in Dallas showed that a minority tester was told he was eligible for an $ 85,000 loan, while a white tester with a less favorable financial record was told he was eligible for a loan of $ 110,000 to $ 150,000, the department said.

"The bank has agreed to change its practices . . . and about 15,000 low- and moderate-income people will now be able to buy their own home because of the settlement announced today," Cuomo said.

AccuBanc officials said there was no finding of discrimination against the company and no applications were actually submitted in the tests.

The settlement was the best way to move ahead and make needed changes, James Munford, president of AccuBanc, said in a statement.

"We believe strongly that the kind of discrimination uncovered in the testing, while not conclusive, has no place in America and is not consistent with our company's values,"Munford said. "Our agreement includes new procedures, expands loan-officer training in fair lending practices and elevates our commitment to compliance review and self-testing procedures."