New Study Finds Banks Are Cheating Black People Out of Mortgages Based on Race, Not Income
By David Love
Biddle St. and N Chester St., East Baltimore. Photo: Robyn Dorsey
A new study sheds more light on Baltimore and the racial and economic exploitation of its Black residents, particularly in the area of mortgage denials. According to Home Mortgage and Small Business Lending in Baltimore and Surrounding Areas, a report just released by the National Community Reinvestment Coalition, a consumer advocacy group, although Blacks are double the population of whites in Baltimore, banks gave mortgages to twice as many whites. And as it turns out, the racial composition of a neighborhood—as opposed to income– is the most important criteria in determining whether a loan is granted.
In light of the death of Freddie Gray by police this year, the unrest and protests and followed, and the underlying issues of racial injustice and economic disparities between Blacks and whites in that city, the new report is both timely and revealing.
“While many Americans take the ability to obtain a mortgage for granted, majority African American neighborhoods in Baltimore City are largely closed off from access to responsible credit and economic opportunity,” said NCRC President and CEO John Taylor in a statement. “These neighborhoods are lending deserts. This is part of …read more
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