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jerryking : redlining   5

Opinion | The Jim Crow South? No, Long Island Today
Nov. 21, 2019 | The New York Times |

White Americans have long found comfort believing that racial discrimination is a thing of the past.

Black Americans feel they know better, and a three-year investigation of Long Island real estate agents by the local newspaper Newsday provides the latest depressing evidence that they are right.

More than half a century after the great civil rights battles to end discrimination, the newspaper found that black home buyers are being steered to black neighborhoods and more closely scrutinized by brokers.

Newsday sent white investigators posing as buyers to meet with 93 real estate agents about 5,763 listings across Long Island. Then, they sent a second buyer — either black, Hispanic or Asian — to meet with the same agents. The practice is a gold-standard methodology known as “paired testing,” in which real estate agents are contacted by pairs of prospective clients with similar financial profiles.

Black testers were treated differently than white ones 49 percent of the time. Hispanic buyers encountered unequal treatment 39 percent of the time and Asian buyers 19 percent of the time.

Along with steering minority testers to majority-minority areas, and white testers to mostly white areas, some agents required black buyers to meet additional financial conditions that they didn’t demand of white buyers with the same profile.
African-Americans  editorials  Jim_Crow  housing  New_York  racism  racial_disparities  Fair_Housing_Act  Long_Island  pairs  racial_discrimination  real_estate  redlining  segregation 
november 2019 by jerryking
Opinion | The American Dream Isn’t for Black Millennials
Jan. 5, 2019 | The New York Times | By Reniqua Allen. Ms. Allen is the author of “It Was All a Dream.”

....I marched up to my new, small, one-bedroom apartment on the Hill, satisfied. It felt as if I’d broken barriers.

But when I got a notice in the mail about five years after I closed, I felt dizzy. It was not long after the financial crisis. The letter said that my mortgage company had been charged with giving subprime loans to black and Hispanic people around the country and asked if I wanted to join a class-action suit. I had most likely been the target of predatory lending. I had known from the start that my income could make me a target. I’d heard the words of the broker. But because of my race? It hadn’t crossed my mind. I was devastated......How much room is there in anyone’s life for a mistake or the perception of a mistake if you’re young and black in America? How much of the American dream hangs in the balance? For the dozens of people I talked to, the reality is that if we want our dreams to come true, all too often we have to be almost perfect, making the right decisions all the time. Not getting that ticket. Not listening to that mortgage broker. Not speaking up.....I know the history of this country, know the history of redlining, know how my grandparents were locked out of neighborhoods because of their skin color. But for some reason I was still surprised. I would say I was mad, but more than that, I was hurt that I had been lulled into some kind of false bourgeois comfort that had made me think that my life was different from my predecessors’ lives. Sure, I had made it up that Hill, but at what cost?
African-Americans  downward_mobility  economic_downturn  millennials  the_American_dream  subprime  predatory_practices  racial_disparities  redlining  home_ownership 
january 2019 by jerryking
As Black-Owned Banks Withdraw, Community Sounds Alarm - WSJ
By Sharon Nunn
Aug. 6, 2017

The number of black-owned banks operating in the U.S. has been dropping steadily for the past 15 years and fell to 23 this year, the lowest level in recent history, according to the Federal Deposit Insurance Corp. That has left many African-American communities short of access to capital and traditional financial services, according to some banking experts....The 2008 recession hit the black banking sector especially hard, and if the current rate of closures of about two a year, as well as the industry-wide reluctance or inability to start banks, continues, black-owned banks could disappear entirely within the next eight to 12 years. The trend is worrisome to some analysts who argue fewer banks serving low-income, minority groups could expand “financial deserts”—communities with few or no banking institutions—and increase the likelihood that black and Hispanic communities could become susceptible to redlining, a discriminatory practice that excludes poorer minority areas from financial services....... [black-owned community banks were] the first bank some African-Americans had access to, making it a symbol of black enterprise and economic development, .......A survey of entrepreneurs by the U.S. Census Bureau in 2014 found that 47% of black business owners had gotten got the full amount of funding requested from banks, credit unions or other financial institutions, compared with 76% of whites.

That survey also showed fear of rejection was the top reason cited by black business owners who chose not to seek needed capital at all.
black-owned  banks  African-Americans  trends  decline  FDIC  financial_services  redlining  low-income  community_banks 
august 2017 by jerryking
The Widening Racial Wealth Divide
OCTOBER 10, 2016 ISSUE | - The New Yorker | By James Surowiecki
THE WIDENING RACIAL WEALTH DIVIDE
It would take black Americans two hundred and twenty-eight years to have as much wealth as white Americans have today.

As Thomas Shapiro, a sociologist at Brandeis and the co-author of the seminal book “Black Wealth/White Wealth,” told me, “History and legacy created the racial gap. Policies have maintained it.” Together, they contribute to what he’s called “the hidden cost of being African-American.”

Start with history. Beginning in the New Deal and on into the postwar years, the federal government invested heavily to help ordinary Americans buy homes and go to school, via programs like the Federal Housing Administration and the G.I. Bill. That fuelled an economic boom and fostered the growth of a prosperous middle class. But black Americans received little of this assistance. Redlining by banks and by government agencies prevented black families from buying homes in white neighborhoods; in a thirty-year period, just two per cent of F.H.A. loans went to families of color. G.I. Bill benefits went disproportionately to white veterans. Black agricultural and domestic workers were excluded from Social Security until the fifties. As Dedrick Asante-Muhammad, the co-author of the CFED/I.P.S. report, told me, “Massive government investment helped create an American middle class. But it was a white American middle class.”
racial_disparities  James_Surowiecki  race  African-Americans  redlining  discrimination  generational_wealth  racism  education  housing  intergenerational  New_Deal  wealth_creation  home_ownership  books  post-WWII 
october 2016 by jerryking
How Segregation Destroys Black Wealth
SEPT. 15, 2015 | NYT | By THE EDITORIAL BOARD.

The Federal Housing Administration, created during the New Deal to promote homeownership, openly supported these racist measures; it forbade lending to black people even as it subsidized white families that moved from the cities to the suburbs. Cut off from fairly priced home loan credit, black neighborhoods deteriorated and their values plummeted....Many discriminatory practices were formally ended with the civil rights and fair lending laws of the 1960s and 70s. But these were quickly replaced by subtler techniques that encouraged ghettoization, like channeling black families away from white areas and banks’ and mortgage brokers’ systematically pushing middle-income black families into high-cost, high-risk loans when they could have qualified for more affordable loans....This history of discrimination has taken an enormous toll on black wealth, as is shown in research by Douglas Massey and Jonathan Tannen at Princeton University’s Office of Population Research. In 1970, two years after the passage of the Fair Housing Act, for example, the average well-off black American lived in a neighborhood where potential home wealth, as measured by property values, stood at about only $50,000 — as opposed to $105,000 for affluent whites and $56,000 for poor whites.

By 2010, affluent African-Americans had passed poor whites in potential home wealth but had fallen further behind affluent whites. There is more than money at stake, Mr. Massey and Mr. Tannen write, because home values “translate directly into access to higher quality education given that public schools in the United States are financed by real estate taxes.”

Throughout history, ethnic groups have been able to translate economic gains into housing in better neighborhoods and advantages for their children. But for African-Americans, the researchers write, that transition has been “thwarted by segregation and the prejudice and discrimination that create and maintain it.” In other words, the damage reaches across generations and continues today
African-Americans  discrimination  education  Fair_Housing_Act  generational_wealth  home_ownership  housing  intergenerational  New_Deal  prejudices  public_education  public_schools  racial_disparities  racism  real_estate_taxes  redlining  segregation  wealth_creation  wealth_management 
september 2015 by jerryking

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