Those 200,000 where part of the scam which put people who were fully qualified for conventional loans into sub-prime loans because the person writing the loan would get 3 or 4 times as much in incentive pay for approving a sub-prime versus a conventional loan. This is where the problem really got started but since so many people were making so much money they just kept going until the bubble, which they were inflating with each unnecessary sub-prime loan issued, burst and the tax payers had to come to their rescue. By rights it should have been the federal marshals coming to arrest them and throw them in jail. But of course, the Republican controlled congress a decade before had made sure that while these practices may have been highly unethical, that the regulations had been changed so that they were NO longer illegal.
"The complaint alleged that the borrowers in 41 states and the District of Columbia were charged higher fees and interest rates because of their race or national origin -- not because of their creditworthiness or other financial risk.
It also alleges that qualified African-American and Hispanic borrowers were placed in subprime loans rather than prime loans even when similarly-qualified non-Hispanic white borrowers were placed in prime loans."
Excerpt taken from:
http://www.marketwatch.com/story/us-in-335-mln-settlement-with-b-of-a-2011-12-21-1554200?reflink=MW_news_stmp
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