These three landmark pieces of legislation pushed back against discrimination and segregation and the impact of each cannot be overstated: Schools and universities across America were forced to take meaningful steps to desegregate; African Americans, especially in Southern states, were granted unprecedented access to the ballot box; and racial discrimination in the sale and rental of housing was banned, a first step in desegregating entire neighborhoods.
While that progress should be celebrated, it is now more important than ever to acknowledge how far we’ve strayed from their intended purposes. When black homeownership is plunging across the country — with the worst losses of all here in Michigan — something is broken.
In Detroit for example, we are seeing more and more of our families renting instead of owning their own homes. The result is less economic stability for residents and communities, especially when 56.8% of households in the 13th congressional district pay more than 30% of their income for housing — the threshold for affordability.
Census Bureau data shows that black homeownership nationwide has fallen to the lowest rate in nearly 50 years. And last year, a series of reports released by the Urban Institute showed Michigan suffered the steepest decline, from 60% in 2000 to 41% in 2016.
While there are a number of contributing factors, including the Great Recession spurred by Wall Street greed and predatory lending, one thing is certain: Provisions in the Fair Housing Act of 1968 do not go far enough to protect our communities in this time of corporate-driven economics that puts profits before people.
An analysis of 31 million mortgage records by The Center for Investigative Reporting found that mortgage lending redlining persisted in 61 metro areas — including Detroit — with people of color, especially African Americans and Latinos, being denied home loans at disproportionate rates.
And the White House is determined to make the situation worse.
The Trump administration is eliminating existing protections that serve as the last line of defense against the declining rate of minority homeownership. The US Department of Housing and Urban Development (HUD), for example, recently proposed gutting the disparate impact protection granted by the Fair Housing Act, which says that banks, landlords and other housing providers may not enact any policy that has a discriminatory effect — even if the policy was not intended to be explicitly discriminatory. This is critical, especially when lenders have used practices that get around showing intentional discrimination.
Trump’s Consumer Financial Protection Bureau (CFPB) has announced its intention to roll back the 2014 expansion of Home Mortgage Disclosure Act (HMDA), an Obama-era set of rules meant to combat modern-day redlining.
The CFPB intends to give 1,720 banking institutions, many of which serve low-income and communities of color, a pass on having to report the race and gender of…
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