In what is apparently the first legal action of its kind, an association of community-based organizations has filed a federal civil rights complaint against two of the three largest Wall Street rating firms, charging that their inflated ratings on subprime mortgage bonds disproportionately caused financial harm to African American and Latino home buyers across the country. The complaint, filed by the National Community Reinvestment Coalition, alleges that Moody's Investors Service and Fitch Ratings enriched themselves by assigning high ratings to bonds backed by mortgages "that were designed to fail" because of "unfair payment terms and insufficient borrower income levels."The lawsuit should extend to Barney Frank and his boyfriend who was writing the Fannie Mae sub-prime rules.
The fact of the matter is that the poor were better off renting the last few years because they could have benefited from real estate deals of the century available right now.
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