Minorities feeling the still effects of mortgage meltdown

Published: May. 17, 2013 at 10:37 PM EDT|Updated: Jun. 16, 2013 at 10:37 PM EDT
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CHARLOTTE, NC (WBTV) - New research shows minorities in Charlotte were hit much harder by the housing crisis.

Lending institutions have made good on foreclosure threats according to Action North Carolina .

The grassroots organization is showcasing a new report titled, "Wasted Wealth." It focuses on deep racial disparities resulting from the mortgage meltdown.

Luis Rodriguez is with the organization and says many remain disenfranchised. "What we seeing is that communities of color were targeted with interest only loans, "he said. "Loans that have balloon payments on the back end, Loans that were adjustable mortgages with high interest rates."

In past stories, we've shown you, NACA housing assistance workshops that have brought some of the nation's biggest lenders to town.

The lines don't lie because a clear majority of those seeking help at these public events people of color.

"They were making loans to people who should not have qualified," Rodriguez said.

With more than three decades of experience, Real Estate Company Owner John Ramadan says this issue goes beyond race.

"The thing now is that people are just gonna have to work on their credit and try to get that back in place again," he said. "We might get 10 people in here, but of those 10,  if we get two or three that qualify for a home. Then we're doing great."

Some of those still struggling were at Bank of America's door protesting, and hoping for help from another one of Charlotte's best known political names.

Rodriguez said, "We're very interested to see what Mel Watt will do."

Mel Watt is the Obama appointee on the list to oversee Freddie Mac and Fannie Mae, and his hearings on the hill could get underway in the next few weeks.

Bank of America says it is helping foreclosed families with loan modifications.

B of A says it approved nearly 16 billion dollars for 164 thousand home owners.

The New York Attorney General says B of A and Wells Fargo haven't gone far enough and plans to take action.

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