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Showing posts with label redlining. Show all posts
Showing posts with label redlining. Show all posts
Monday, April 7, 2025
Maryland Fair Housing Month Free Activities & Trainings
Friday, April 4, 2025
State Legislature Creates a Maryland Reparations Commission, One of Few States with a Statewide Panel
The House of Delegates has given final approval on April 2nd to a bill that would create a Maryland Reparations Commission, sending the measure to the governor for his signature. The 101-36 party-line vote would make Maryland one of the few states in the nation with a statewide body to study the inequality endured by African descendants. California became the first state in 2020 to pass legislation; then Illinois in 2021 and New York in 2023. According to the American Association of Medical Colleges' Center for Health Justice (ACHJ), as of March 6, 2024, 22 localities (including Washington, D.C.) have approved a reparations commission or task force and 11 states have introduced legislation to create one.
If approved, the Maryland commission would assess specific federal, state and local policies from 1877 to 1965, the post-Reconstruction and Jim Crow eras. Those years “have led to economic disparities based on race, including housing segregation and discrimination, redlining, restrictive covenants, and tax policies,” according to the bill. The commission would also examine how public and private institutions may have benefited from those policies, and would recommend appropriate reparations, which could include statements of apology, monetary compensation, social service assistance, business incentives and child care costs. The all-volunteer commission would consist of 23 people, including two employees from the state’s four historically Black colleges and universities with expertise in the history of slavery; a representative from the Maryland Lynching Truth and Reconciliation Commission; and the state archivist or a designee from that office.
A hearing on the Maryland Senate version was first held on February 27th and then approved by the full chamber on March 14th. The bill would go into effect July 1st and remain in effect until June 30, 2028.
You can view a discussion with Dr. Jamal Bryant and the Reverend Dr. Robert Turner, NAARC Commissioner and Pastor of Empowerment Temple, Baltimore, on the “Let’s Be Clear” Podcast. They explore reparations, the intersection of faith and justice, and the significance of the Tulsa race massacre centennial. Dr. Turner recounts his 1,169-mile advocacy journey and highlights the ongoing fight for equity and reparative justice. Source: The Jamal Bryant Podcast “Let’s Be Clear,” YouTube. It was made available by the National African American Reparations Commission (NAARC).
Monday, March 31, 2025
April is Fair Housing Month in the State of Maryland: Free Trainings Available!
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Friday, March 21, 2025
Historic Redlining in Syracuse Continues to Impact Public Schools
The recent executive order limiting DEIA within the U.S. has sparked conversations regarding the importance of diversity within public schools. This article considers Syracuse, New York, as an example. While Syracuse has a population one-fourth of Baltimore, it has many parallels.
The city of Syracuse is one of the nation’s most racially segregated, most redlined, economically polarized, and poorest cities. Its Syracuse City School District (SCSD) remains highly segregated as a result of neighborhood borders drawn a century ago. The borders’ effects still surface in the school’s demographics. SCSD continues to feel the effects of segregation despite the formal outlawing of redlining in 1968 through the Fair Housing Act. New federal orders limiting diversity, equity, inclusion and accessibility have local educators concerned for the future of these efforts.
SCSD (30 schools and 19,000 students) has seen low standardized test scores in recent years, according to U.S. News and World Report. From 2020-2022, 16% of students in SCSD elementary schools tested at or above a proficient level for English, while only 11% were found to be at that same level for math. Comparatively, the more suburban and predominantly white Fayetteville-Manlius Central School District (FMCSD) had 73% of students at or above the proficiency level for English, and 77% for math.
Christopher Cleveland, an assistant professor of education and education policy at Brown University, has said the current President’s policies are impacting the politicization of school segregation. While the president has not publicly spoken against integration efforts specifically, he said the cuts to federal funding likely will not help the cause. “(Integration) has not necessarily been considered a DEI issue. “So I think the question is how broadly framed DEI’s criticism is supposed to be relative to practices that have been in existence for the past 60-ish years.”
Syracuse remains one of thein the nation. When redlined maps are lined up with current maps showing the racial demographics of SCSD schools, the images reflect each other. The city still demonstrates a racial divide in schools, Searing said. The Century Foundation has reported that about 93% of Syracuse school segregation is a result of past segregation between districts. Neighborhoods that received a “D” rating from the Federal Housing Administration typically contain lower-performing schools and a majority Black student body. This contrasts neighborhoods that received an “A” rating, whose schools typically enrolled wealthier, white students and saw higher academic performance.
“Segregation has been illegal since 1964, but segregation still exists because the processes that created these realities have been in action for much longer,” Robert Searing, curator of history at the Onondaga Historical Association commented. Segregation within school districts can also be traced to districts’ current catchment borders that outline school districts, frequently shaped to protect white neighborhoods and separate them from communities with more Black and Brown residents.
Christine Ashby, director of the Center on Disability and Inclusion at Syracuse University said “In the redlined neighborhoods, students with disabilities, particularly students of color, were less likely to be included, less likely to be in general education, and more likely to have particular disability labels than kids in other neighborhoods.”
To be certain, in addition to redlining, white flight - more affluent and white people moving to suburban areas for improved education options - also has played and plays a large role in the segregation of SCSD.
“Restrictive racial covenants were outlawed by the Supreme Court in 1948, but they continued to be enforced, because, as with any law, the law is only as good as the enforcement mechanism,” Searing said. “Is redlining technically illegal? Sure it is, but the practices still continue.”
Read the March 21, 2025 Syracuse University The Daily Orange article.
Wednesday, February 26, 2025
CFPB Takes Action Against Draper & Kramer Mortgage for Discriminatory Mortgage Lending Practices Including Redlined Neighborhoods in Chicago and Boston
The Consumer Financial Protection Bureau (CFPB) has taken action against Draper & Kramer Mortgage Corporation (Draper) for discriminatory mortgage lending activities that discouraged homebuyers from applying to Draper for homes in majority-Black and Hispanic neighborhoods in the greater Chicago and Boston areas. The CFPB alleges that Draper located all its offices in majority-white neighborhoods, concentrated its marketing in majority-white neighborhoods, and avoided marketing to majority-Black and Hispanic areas. These actions resulted in disproportionately low numbers of mortgage loan applications and mortgage loan originations from majority-Black and Hispanic neighborhoods in Chicago and Boston compared to other lenders. If entered by the court, the proposed order announced today would ban Draper from engaging in residential mortgage lending activities for five years, and require Draper to pay a $1.5 million civil money penalty into the CFPB’s victims relief fund.
Draper & Kramer Mortgage Corporation is a non-depository mortgage lender based in Downers Grove, Illinois. Draper received applications and originated mortgage loans across the country, including in Illinois, Indiana, Massachusetts, New Hampshire, and Wisconsin.
The CFPB alleges that, from 2019-2021, Draper engaged in redlining majority-Black and Hispanic neighborhoods in the greater Chicago and Boston areas, resulting in it significantly underperforming its peers in lending activity to these areas. Draper discouraged mortgage applicants from making or pursuing an application for credit on the basis of race, color, and national origin, violating the Equal Credit Opportunity Act and Regulation B.
Specifically, the CFPB alleges that Draper violated the law by:
(1) Intentionally focusing mortgage lending activities in majority-white neighborhoods and excluding Black and Hispanic neighborhoods: Draper had no offices, no loan officers, and virtually no marketing or outreach in majority- or high-Black and Hispanic neighborhoods in Chicago and Boston. Draper did not assign any loan officers to solicit applications in majority-Black and Hispanic communities and failed to train or incentivize its loan officers to lend in these communities. Draper’s outreach and marketing specifically targeted majority-white neighborhoods and mostly avoided majority-Black and Hispanic neighborhoods.
(2) Discouraging mortgage applicants from pursuing properties in majority-Black and Hispanic neighborhoods: Draper’s business model discouraged borrowers from applying for loans to purchase property located in these neighborhoods. Draper’s peer lenders generated applications for properties in majority-Black and Hispanic areas in the Chicago metro area at over two and-a-half times the rate and in the Boston metro area at three times the rate that Draper generated such applications. Draper also originated disproportionately low amounts of mortgage loans for properties in these neighborhoods, with peers in Chicago and Boston originating two and-a-half times more loans than Draper in majority-Black and Hispanic neighborhoods.
Under the Consumer Financial Protection Act, the CFPB has the authority to take action against institutions violating consumer financial laws, including the Equal Credit Opportunity Act and engaging in unfair, deceptive, or abusive acts and practices.
If entered by the court, the order would require Draper to:
- Cease residential mortgage lending activities for five years: For that period, Draper cannot perform any residential mortgage lending activities, nor receive any compensation for any residential mortgage lending.
- Pay a $1.5 million civil penalty to the CFPB’s victims relief fund.
Consumers can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
Employees who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to whistleblower@cfpb.gov. To learn more about reporting potential industry misconduct, visit the CFPB’s website.
Friday, February 21, 2025
Chicago Non-Profit Transforming Vacant Land Stripped by Redlining & Other Discrimination
Chicago's Emerald South is working to reverse the negative effects of historic redlining by revitalizing and transforming 205 acres of vacant land. Ghian Foreman leads the Emerald South Economic Development Collaborative, a nonprofit. Its Terra Firma initiative. begun in 2021, is a multiyear, $50 million land care initiative to beautify, maintain, and activate vacant land in the community.
The Collaborative's mission is "to attract and coordinate investment through community convening and collaborative partnerships that increase local ownership and prosperity." It was started in 2017 with a $250,000 grant from the Chicago Community Trust and funding from the Polk Bros. Foundation. The goal is to create ways for local businesses and residents to benefit from the tourists expected to come to the area once the Obama Presidential Center is built in Jackson Park.
The project focuses on revitalizing neighborhoods across what the organization calls the Mid South Side: from Bronzeville to the north, down to South Chicago, to the south. According to housing policy experts, many of these areas were shaped by discriminatory housing practices. "There were policies that were put in place - redlining, restrictive covenants, urban renewal - where a lot of these buildings that sat here were actually torn down," said Foreman.
According to the Cook County Assessor, there are over 30,000 vacant lots in Cook County, both city- and privately-owned. The vast majority, 93%, are in communities of color, while only 7% are in majority-white neighborhoods. On Chicago's South Side, vacant lots account for 67% of the total, compared to just 4% on the North Side.
Emerald South is still in phase one of its ambitious plan. So far, the organization has cleaned and beautified over 100 acres. That land is marked by its signature split-rail fencing, a symbol of what's to come. "First, it's just clean and green, no trash, a fence, a sign that this land is cared for," explained Foreman. "Then, we activate spaces with murals and community art. And after that, we start imagining- What if we owned the land? What if we built on it?"
Friday, January 24, 2025
The Mortgage Firm to Invest $1.75M to Settle DOJ Redlining Housing Discrimination Case
The Mortgage Firm, a Florida-based mortgage lender, has agreed to invest $1.75 million to settle a redlining case with the U.S. Department of Justice (DOJ), the parties announced. The DOJ accused the company of discrimination against predominantly Black and Hispanic neighborhoods in the Miami-Fort Lauderdale-West Palm Beach metropolitan area. The company ‘significantly underperformed’ its peers in generating applications from majority-Black and majority-Hispanic neighborhoods during 2016-2021. The complaint, filed in the Southern District of Florida, alleges violations of the Fair Housing Act and Equal Credit Opportunity Act. DOJ opened an investigation into The Mortgage Firm’s lending practices after receiving a referral from the Consumer Financial Protection Bureau.
A spokesperson at The Mortgage Firm told HousingWire that “throughout its 29-year history, the company has been committed to providing equal credit access to all communities within its lending footprint. The complete absence of legal or regulatory violations on The Mortgage Firm’s record speaks for itself.”
The company received 9,375 mortgage applications during 2016-2021, of which 30.4% were from residents of majority-Black and majority-Hispanic neighborhoods. Its peers’ share was 59%. The complaint also pointed out that the company had its offices located predominantly in white neighborhoods and took inadequate steps to market to and develop referral networks within Black and Hispanic neighborhoods.
The proposed consent order, which awaits court approval, would require The Mortgage Firm to:
- Conduct a Community Credit Needs Assessment to identify the credit needs of residents of predominantly Black and Hispanic neighborhoods in the Miami MSA and to consider the results in developing future loan programs, marketing campaigns, and outreach efforts.
- Provide $1.75 million for a loan subsidy program to offer affordable home purchase, refinance, and home improvement loans in predominantly Black and Hispanic neighborhoods in the Miami MSA. The program may provide lower interest rates, down payment assistance, closing cost assistance, or payment of initial mortgage insurance premiums.
- Conduct a detailed assessment of its fair lending program in the Miami MSA regarding fair lending obligations and lending in predominantly Black and Hispanic neighborhoods.
- Enhance its fair lending training and staffing to ensure equal access to credit is provided across their market area, including by employing a Director of Community Lending.
- Expand its outreach and advertising efforts by having an office location in a majority-Black and Hispanic neighborhood in Miami-Dade County, translating its website into Spanish, and requiring all of its loan officers in the Miami MSA to market to majority-Black and Hispanic neighborhoods.
- Bolster connections with the community and build referral sources in predominately Black and Hispanic neighborhoods by providing four outreach events annually, six financial education seminars per year, and partnering with at least one community partners to increase access to credit in predominately Black and Hispanic neighborhoods in the Miami MSA.
A copy of the complaint, proposed consent order, and information about DOJ’s fair lending enforcement work, is at www.justice.gov/fairhousing. Anyone may report lending discrimination by calling DOJ’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Sunday, January 19, 2025
CFPB Takes Action Against Draper & Kramer Mortgage for Discriminatory Mortgage Lending Practices
The Consumer Financial Protection Bureau (CFPB) has alleged that Draper & Kramer Mortgage Corporation (Draper) committed discriminatory mortgage lending activities by discouraging homebuyers from applying to Draper for homes in majority-Black and Hispanic neighborhoods in the greater Chicago and Boston areas. The CFPB alleges that Draper located all its offices in majority-white neighborhoods, concentrated its marketing in majority-white neighborhoods, and avoided marketing to majority-Black and Hispanic areas. This resulted in disproportionately low numbers of mortgage loan applications and mortgage loan originations from majority-Black and Hispanic neighborhoods in Chicago and Boston compared to other lenders. If entered by the court, the proposed order would ban Draper from engaging in residential mortgage lending activities for five years, and require the lender to pay a $1.5 million civil money penalty into the CFPB's victims relief fund.
The CFPB alleges that, from 2019-2021, Draper redlined majority-Black and Hispanic neighborhoods in the greater Chicago and Boston areas, resulting in it significantly underperforming its peers in lending activity to these areas. Draper discouraged mortgage applicants from making or pursuing an application for credit on the basis of race, color, and national origin, violating the Equal Credit Opportunity Act and Regulation B.
Specifically, the CFPB alleges that Draper violated the law by:
(1) Intentionally focusing mortgage lending activities in majority-white neighborhoods and excluding Black and Hispanic neighborhoods: Draper had no offices, no loan officers, and virtually no marketing or outreach in majority- or high-Black and Hispanic neighborhoods in Chicago and Boston. Draper did not assign any loan officers to solicit applications in majority-Black and Hispanic communities and failed to train or incentivize its loan officers to lend in these communities. Draper's outreach and marketing targeted majority-white neighborhoods and largely avoided majority-Black and Hispanic neighborhoods; and
(2) Discouraging mortgage applicants from pursuing properties in majority-Black and Hispanic neighborhoods: Draper's business model discouraged borrowers from applying for loans to purchase property in these neighborhoods. Draper's peer lenders had applications for properties in majority-Black and Hispanic areas in the Chicago metro at over two and-a-half times the rate and in the Boston metro area at three times the rate that Draper generated such applications. Draper also originated disproportionately low amounts of mortgage loans for properties in these neighborhoods, with peers in Chicago and Boston originating two and-a-half times more loans than Draper in majority-Black and Hispanic neighborhoods.
If entered by the court, the CFPB order would require Draper to: (1) Cease residential mortgage lending activities for five years: Draper cannot perform any residential mortgage lending activities, nor receive any compensation for any residential mortgage lending; and (2) Pay a $1.5 million civil penalty to the CFPB's victims relief fund.
Consumers can submit complaints about financial products and services by visiting the CFPB's website or by calling (855) 411-CFPB (2372).
Employees who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to whistleblower@cfpb.gov. To learn more about reporting potential industry misconduct, visit the CFPB's website.
Friday, December 13, 2024
Book Review: "Before Gentrification: The Creation of DC's Racial Wealth Gap"
Before Gentrification: The Creation of DC's Racial Wealth Gap by Tanya Maria Golash-Boza. University of California Press, 2023. 311 pages. Paperback. $27.95.
Amazon.com's description:
"Before Gentrification shows how a century of redlining, disinvestment, and the War on Drugs wreaked devastation on Black people and paved the way for gentrification in Washington, DC. Golash-Boza tracks the cycles of state abandonment and punishment that have shaped the city, revealing how policies and policing work to displace and decimate the Black middle class.
Through the stories of those who have lost their homes and livelihoods, she explores how DC's "troubling history makes clear that the choice to use prisons and policing to solve problems faced by Black communities in the twentieth century—instead of investing in schools, community centers, social services, health care, and violence prevention—is what made gentrification possible in the twenty-first. Before Gentrification unveils a pattern of anti-Blackness and racial capitalism in DC that has implications for all US cities."
This book is a personal project: as Golash-Boza states, “I have a personal investment in understanding how and why my neighborhood became plagued by violence, why so many of my childhood friends were murdered, why a generation of Black boys and men was put behind bars, and why so few of my childhood friends can afford to live in the neighborhood where we were raised” (p. 24).
Regarding the book's reception, Golash-Boza posted in her Twitter (X) account: "I just read the first published review of Before Gentrification and it's a good reminder my book is not for everyone. The book clearly generates a different response in different readers - and that's fine. So far, the audience I most wanted to reach has responded positively."
Read the abstract of the book review in the December 2024 Social Forces.
Read the December 2023 Twitter (X) post.
Friday, November 22, 2024
HSBC Commits $25M to NCRC Partnership Following Redlining Allegations
HSBC, a British universal bank and financial services group headquartered in London, has agreed to direct $25 million over the next four years to support underserved communities in an agreement with the National Community Reinvestment Coalition (NCRC) following allegations of redlining.
HSBC had been under investigation by the Department of Housing and Urban Development (HUD) after NCRC filed a complaint alleging violations of the U.S. Fair Lending Act. According to the document, HSBC allegedly engaged in discriminatory lending practices in majority Black and Hispanic neighborhoods in six U.S. metropolitan areas from 2018-2021 - including New York (NY), Seattle (WA), Orange County (CA), Los Angeles (CA), Oakland (CA), and the Bay Area (CA).
The new HSBC-NCRC partnership begins in January 2025, and is dedicated to expand economic opportunities in low—and moderate-income, diverse and underserved communities through loan subsidies, grants, and donations. The HSBC US and Americas CEO Michael Roberts stated that the partnership “reflects our shared commitment to fostering economic resilience and opportunity in communities across the U.S., and we are honored to support these efforts through our loans, investments and grants.”
HSBC has committed $10 million in loan subsidies, including $3.5 million to certain California markets. An additional $4 million will be for grants to Community Development Financial Institutions (CDFIs) and community-based nonprofit organizations, $6 million will be donated to NCRC, and $1 million will fund community engagement initiatives.
According to the mortgage tech platform Modex, HSBC originated about $3.5 billion in mortgages in the last 12 months, 77% of them purchases and 90% conventional loans. California and Washington are the bank’s main markets.
Read the November 20, 2024 HousingWire article.
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