With proposed changes to Community Reinvestment Act rules expected in late summer or early fall, we must remind federal regulatory agencies not to diminish the importance of home mortgage lending in CRA exams.
Fair housing laws protect minorities from discrimination, but they haven’t eliminated bad behavior in the lending and housing industries.
Data is the sunlight that makes possible the fight against discrimination. The Consumer Financial Protection Bureau (CFPB), however, is considering changing its method of disseminating loan data that would make it less readily available to the public and significantly hamper our collective ability to root out unfair and discriminatory practices.
The bill, S. 3503, addresses discriminatory lending, affordable homeownership, modernization of the Community Reinvestment Act and relief for families still recovering from the Great Recession.
The evidence of a strong link between redlining, racial segregation and the value of homes just got stronger.
Government maps from the 1930s offer a ‘smoking gun’ that helps explain the redlined, segregated and disinvested nucleus of more than 200 cities, which persists today.
Federal policy prevented people of color from buying homes in certain neighborhoods. The effects of this racist policy, called redlining, shapes Tacoma neighborhoods decades later.
Nationally, the median home value in redlined areas is $276,100, compared with $324,489 outside of them—a difference of nearly $50,000.
The racist lending policy continues to affect consumers to this day