Mariner Finance Accused of Predatory Lending Practices by Five States & D.C.

Mariner Finance, a loan company controlled by a large private-equity firm, is engaged in a nationwide scheme that takes advantage of low- and moderate-income consumers, according to a lawsuit filed by the attorney generals of five states: Pennsylvania, New Jersey, Utah, Washington, Oregon, and the District of Columbia. The lawsuit alleges that the company: (1) adds expensive insurance policies and other products to loans without the borrowers' knowledge, and (2) deceptively gets them to refinance their debts to produce even more fees for the company. Mariner Finance is owned by an investment fund managed by Warburg Pincus, a Wall Street private-equity firm. Its president is Timothy F. Geithner, who, as President Obama's treasury secretary, condemned predatory lenders. Executives at Warburg Pincus and the lender denied any wrongdoing. Mariner has over 480 branches in 27 states and manages $2 billion in loans every year, according to the lawsuit.

State officials began investigating Mariner Finance after the Washington Post published a 2018 story on the company and private-equity firms' roles in consumer lending. The article detailed the company’s practice of mass-mailing live checks to consumers who, if they cashed them, were obligated to repay the money at interest rates of over 30%. The lawsuit said that Mariner’s targets “are often in financial crisis, decidedly unfamiliar with receiving unsolicited checks in the mail, and in desperate need of economic relief.” “Mariner uses live checks as an entrée to the most vulnerable portion of the targeted population.”

According to a 2018 Washington Post article, the company "enables some of the nation’s wealthiest investors and investment funds to make money offering high-interest loans to cash-strapped Americans."

Read the August 17, 2022, Washington Post article.

Read a July 18, 2018 Washington Post article on how equity firms exploit desperate households.

 Johns Hopkins Professors Sue Real Estate Appraisal Company over Low Valuation of Homeland Property

Two Black Johns Hopkins University professors took down family photos and replaced them with pictures of white faces in an effort to increase the value of their home after an initial appraisal fell short of expectation, an outcome they believed was due to race and not the property’s condition. A different appraisal company valued the house at nearly 60% more when the home appeared to be owned by white people.

Hopkins professors Nathan Connolly and Shani Mott are suing for damages citing racial discrimination. They have filed a suit against loanDepot (Foothill Ranch, California), and 20/20 Valuations and Shane Lanham, the owner of 20/20 Valuations who conducted the first appraisal. The complaint alleges that all of the first appraiser's selected comparable homes were of lower quality than their home, and the appraisal wrongly said that their home had not been updated for 15 years. The complaint stated the appraiser “cherry-picked low value homes as comps,” and by doing so, he “ignored legitimately comparable homes with much higher sales prices.”

It is ironic that Connolly, a history professor at Johns Hopkins University, is an expert on redlining and the legacy of white supremacy in cities, with a lot of his research on the role of race in the housing market.

Over 97% of home appraisers are white, according to the Bureau of Labor Statistics. Since summer, 2020, after George Floyd's murder, dozens of Black homeowners have alleged discrimination in their home valuations. Some have filed lawsuits. The Biden administration in March, 2022, proposed reforms to overhaul the appraisal industry and try to dismantle systemic bias.

Sources: Read the August 19, 2022 Baltimore Sun article. Read the August 18, 2022, New York Times article. Read the August 19, 2022 CNN article.

 

Antisemitic Flyers Distributed in Virginia Beach on July 24th

The Anti-Defamation League says the flyers came from a loose network of people connected by their antisemitic beliefs.

Some Virginia Beach residents on Sunday morning found flyers with antisemitic rhetoric in their front yards. They had names and pictures of Disney executives and political figures with antisemitic messages and images on it.

Meredith Weisel with the Anti-Defamation League said the flyers came from a group called the Goyim Defense League, "a loose network of individuals connected by their antisemitism" that has done "campaigns like this on and off over the last few years." Weisel said the group did 74 anti-Semitic propaganda incidents in 2021 in 17 states. In the past weekend, flyers like the ones in Virginia Beach were distributed in Richmond and other states.

Rabbi Roz Mandelberg with Ohef Sholom Temple said some of her congregants received the flyer and were very upset. Virginia Beach Mayor Bobby Dyer said the government was aware of the flyers and the Virginia Beach Police Department is trying to find who dropped the flyers off.

If you receive one of the antisemitic flyers or any other hateful flyers, Weisel said you can report it anonymously to the Anti-Defamation League.

Source: Read the July 26th Channel 13 Now (WVEC-TV Norfolk) news article.

 LARGEST ANNUAL SUMMIT ON ANTISEMITISM AND HATE WILL BE HELD ON NOVEMBER 10TH

Never is Now  In the midst of increasing incidents of hate across the world, this Summit organized by the Anti-Defamation League (ADL) is crucially important. Attendees will tackle crucial conversations, engage with extraordinary experts, leaders, and visionaries - and be inspired to take immediate action that will create lasting change in your community and beyond. Through meaningful dialogue, education and interpersonal connections, we will continue the fight against antisemitism, hate and bias in all its forms—together. The only voice missing is yours.

REGISTER HERE

ADL TO HOLD CONCERT AGAINST HATE

Kennedy Center Evening of Music, Community and Celebration This November, the Anti-Defamation League (ADL) will hold an ADL In Concert Against Hate at the John F. Kennedy Center for the Performing Arts in Washington, DC. It will be an in-person night of music, community and celebration packed with spectacular, can’t-miss performances from acclaimed stars and featuring the internationally renowned National Symphony Orchestra. Through storytelling and song, the audience will be introduced to real-life heroes and celebrate their extraordinary acts of courage and compassion in the face of bigotry and hate. LEARN MORE AND BUY TICKETS

 BAZELON CENTER FOR MENTAL HEALTH LAW AWARDS CONCERT!

Lachi, Award-winning recording artist and Founder & President of RAMPD Will Perform at Bazelon Center's 2022 Annual Awards - Celebrating 50 Years! Thursday, September 22, 2022 7 PM ET * Virtual * Free

RSVP HERE

Image Description: Lachi is a blind, black woman wearing a brown fuzzy fur jacket, large circle earrings, and stylish blue eyeshadow. She has long braids and arms crossed.

We are excited to announce Award-winning recording artist and Founder & President of RAMPD, Lachi, will perform at the Bazelon Center's 50th Anniversary Virtual Awards! We are also excited to announce that registration opens TODAY! The Bazelon Center has dedicated five decades to protecting the rights of people with mental disabilities and will host events throughout the year, to learn more about our milestones and activism, visit bazelon50.org. Date: Thursday, September 22, 2022 Time: 7 PM ET Location: Virtual Cost: Free Registration Opens TODAY Click HERE to RSVP This year's sponsors include: Bender Consulting Services, Inc., Brown Goldstein & Levy, Dignity Memorial, eSSENTIAL Accessibility, Georgia Advocacy Office, Gilbert Employment Law, P.C., Highmark, MIDA Associates, PNC, Reed Smith, Rosen Bien Galvan & Grunfeld, LLP, and Vanguard Communications ASL, Open Captioning, and Audio Descriptions will be available; please contact communications@bazelon.org with additional accessibility requests. Re-watch our 2021 Awards (video) HERE.   Learn about sponsorship opportunities (PDF) HERE.

 JULY 26^TH WAS THE 32ND ANNIVERSARY OF THE PASSAGE OF THE AMERICANS WITH DISABILITIES ACT

Signed into law in 1990, this civil rights law works to ensure the rights of persons with disabilities in public accommodations, employment, transportation, state and local government services, and telecommunications. A great ADA celebration toolkit with resources, language tips, events, etc., is here. 

“The Americans with Disabilities Act embodies a national promise to eliminate discriminatory barriers and support full participation, community integration, independent living and economic self-sufficiency for people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue using this bedrock civil rights law to eliminate barriers and safeguard the rights of people with disabilities across the country.” 

In June, 2022, the Department made a multi million-dollar settlement agreement with Uber Technologies Inc. consisting of Uber commitments to policy changes and paying several million dollars in compensation to over 65,000 Uber users charged discriminatory fees due to disability. 

The Justice Department’s other recent enforcement efforts have included removing barriers that prevented people with disabilities from booking vaccine appointments on the web and finding critical vaccine information; enforced the ADA to safeguard the rights of people with opioid use disorder (OUD) who are in treatment or recovery; and starting statewide Olmstead investigations in response to complaints. 

Read the USDOJ's press release about the anniversary.

 National Study Finds Persistent Bias Against Non-White Renters

It also showed that landlords are less likely to reply to applicants with Black and Latino names. 

A recent National Bureau of Economic Research (NBER) study found that landlords are less likely to respond to applicants with African American and Latino sounding names when renting properties. This contributes to rising residential segregation. In the largest study of rental discrimination, fictitious renters with names associated with White, African American, or Hispanic identities, were used. The research tracked over 25,000 interactions between those people and 8,476 property managers in 50 of the largest U.S. cities. Renters with White-sounding name received a 60% response rate, compared to a 54% and 57% response rate for those with African American and Hispanic identities. Other research have documented similar trends in the buyer’s market. 

Research has found that appraisers consistently undervalue homes in Black and Latino neighborhoods. In the NBER analysis, it was found that a lack of a response to a renter of color decreased the likelihood that someone of that ethnic group would live in a property by around 17%. The most discrimination for Black renters was identified in Chicago, Los Angeles, and Louisville. Latinos in Louisville, Houston, and Providence, Rhode Island, faced the strongest constraints, according to a recent analysis by the Federal Reserve Bank of Cleveland. 

Read the research report Racial Discrimination and Housing Outcomes in the United States Rental Market. 

Article source: Read the Bloomberg article