black…MYstory

I can remember, from many years back, the Congressional Black Caucus railing against subprime lending.  Back then, they called it by a more appropriate term, “predatory lending”.

What they were seeing was evidence, both anecdotal and empirical, that minority homebuyers, particularly Black and Latino homebuyers, were being steered toward these predatory loans, even while White borrowers in similar financial situations were being steered toward conventional loans.

A new report issued by the National Community Reinvestment Coalition (NCRC) sheds light on just how prevalent the racial disparities in these home loans really really are.

Below is a an excerpt of an article discussing this report:

According to the report, minorities are paying more for mortgages, even as their income levels increase. Loan price disparities, as compared to white counterparts, were more common for middle to upper-income (MUI) African-American and Hispanic borrowers than pricing disparities were for low- and moderate-income minority borrowers.

Lending disparities for African-Americans and Hispanics also increased significantly as income levels increased. During 2006, middle- and upper-income (MUI) African-Americans were twice or more as likely to receive high-cost loans as MUI whites in 155 of the metro areas analyzed (71.4 percent). Furthermore, MUI Hispanics were twice or more as likely to receive high-cost loans as MUI whites in 45 of the metro areas analyzed (22.5 percent).

In comparison, while low- and moderate-income (LMI) minorities are more likely to receive high-cost loans than LMI whites, the disparity was less significant than disparities among MUI borrowers. LMI African-Americans were twice or more as likely to receive high-cost loans as LMI whites in 87 metro areas (47.3 percent). Furthermore, LMI Hispanics were twice or more as likely to receive high-cost loans as LMI whites in 8 metro areas (4.9 percent).

Significant levels of high-cost lending unnecessarily impede wealth building in minority communities. High-cost loans have significantly contributed to the current foreclosure crisis, wiping out hundreds of millions of dollars in mortgage equity. The overwhelming and unexplained prevalence of high-cost lending in minority communities suggests that some level of discriminatory behavior continues in the mortgage finance market, as has been shown by other studies, including those utilizing creditworthiness data conducted by NCRC, the Center for Responsible Lending and the Federal Reserve.

The last paragraph is particularly telling.  It states that creditworthiness is not necessarily the determining factore in whether or not a minority borrower would get a more expensive/riskier loan.

Granted, the onus is on us to become more financially-literate but, by no means, does this excuse away discriminatory practices on the part of lenders.

Popularity: 10% [?]

An Indiana staffing firm has just agreed to a substantial settlement to settle discrimination claims.

The Renhill staffing company will pay $585,000 in an age, race and retaliation discrimination suit. According to the suit, brought forth by the EEOC, “Renhill’s Fort Wayne office and a former office in Decatur violated federal law by failing to refer African-American applicants and applicants ages 40 and older for work assignments.” Furthermore, the EEOC claimed that employees of the firm were retaliated against when they complained about these practices.

In addition to the financial settlement, Renhill will be under a consent decree for the next three years, so that monitors can ensure that the company’s discriminatory practices are not continuing.

Popularity: 79% [?]

Craig Holcomb is a white man suing his former employer for discrimination. Now, some might say, “what happened, did they hire a black person for a job he should have gotten?” In a word, no.

Holcomb is alleging he was fired because of who he chose to love and marry. Holcomb was the top assistant basketball coach at Iona College in New York. In 2004, Holcomb was fired from his coaching job by what he says were a group of racists in the athletict department. Specifically, he names the school’s Vice President and former Athletic Director Richard Petriccione as one of the main perpetrators. According to Holcomb, Petriccione repeatedly referred to players as “ni**ers” and called a Nigerian employee a “jungle bunny”. When it was clear that Holcomb was going to marry his then-fiancee Pamela Gauthier, a black woman, Holcomb said Petriccione told him, “You’re really going to marry that Aunt Jemima? You really are a ni**er lover.”

Originally, his case was thrown out of court because the judge ruled that Holcomb couldn’t file racial discrimination because the racial hostilities alleged were aimed at Holcomb’s wife. However, the 2nd Circuit U.S. Court of Appeals in Manhattan has reinstated his case, ruling that it would be possible for Holcomb to be discriminated against due to his association with his wife.

Holcomb with have his day in court and a college will have to answer questions of discrimination. If true, this is a sad commentary and a reminder that, even today, some people want to enact their own miscegenation laws.

Popularity: 16% [?]