Politics and Black Mortgages
Believe it or not, there are still cities in America where it is more difficult, if not impossible, for Black People and other “minorities” to get a home loan – a mortgage.
In an article titled, “Cities Where Black Homebuyers are Least Likely to get a Mortgage,” by Tendayi Kapfidze, we found Sacramento to be number 5 on the list.
To be fair, the author did not say or use data that explicitly alleged discrimination. The only criteria for getting on the list was the percentage of loans that were declined. In Sacramento’s case, approximately 20 percent of all loans were denied. But 39.5 percent of all Black Mortgages were denied.
Up until 1968, there was widespread use of a tactic called “Redlining” in American cities and neighborhoods. The term refers to, “A discriminatory practice by which banks, insurance companies, and others, refuse or limit loans, mortgages, insurance, etc., within specific geographic areas, especially inner-city neighborhoods.”
It was based on the belief that certain “hoods” were more likely to default on their loans than other, more “loan-worthy” neighbors. It had some merit as many low-income neighborhoods did not have a history of paying debt on time or at all.
However, when it was discovered that even potential borrowers who were more than qualified were also being turned away, the government stepped in and created the Fair Housing Act to solve the problem. Passed in 1968, The FHA has helped millions of people that would otherwise have not been able to get home loans.
So, is the list of cities where Black People still have more trouble than others helping to identify continued racism? Or is it simply the economic fact that our government has failed us in other areas?
Areas like public education, or after school programs, or daycare for working mothers. Is it possible that some in our great country still do not receive the same benefits as others? What happens when a neighborhood or entire cities are implicitly biased? What effect does being poor have on future generations?
Success is the study of the obvious, and obviously, throwing money at it does not fix the problem. Neither will giving loans to people who cannot afford them. But people who can afford them should never be denied simply for their heritage!
Carol Does Loans has always been in the underdogs’ corner. We have arranged home mortgages for people of color – all colors! People of different nationality – any nationality! And people of alternative lifestyles – whatever sex you feel like!
We have, however, turned a few away. A very few, and only because they were not in a position in their life where securing a mortgage was in their best interest. Some people need help with their finances. Others need to spend a little more time preparing. And some are simply not credit-worthy.
In all cases, we go out of our way to start them on a path to prosperity. We are NOT financial advisors! We are not credit repair folks! And we do not sell insurance.
But we know people who are and we are familiar with their strategies. We also know every home loan program available to the American people! There are over 57 varieties of mortgages and we know them all, so you don’t have to. If you want a home loan, we can get one for you. And if you are one of the rare few that aren’t yet ready, we will steer you in the right direction to get you started.
But rest assured, we will never, never, never, turn you down because, like Joe Biden says, “You ain’t white…”