"The More Things Change...The More They Stay The Same!"

It's time to Break It Down!

Yesterday was Primary Election Day in North Carolina. It was a time reserved for sorting out the particulars regarding which candidates will vie for a variety of public elective local, state, and national offices in November. At that time, voters will execute their civic duty to determine whether Republicans regain control of one or both Houses of Congress, in the much ballyhooed Mid-term Elections.

In the wake of the Primary, and in anticipation of the General Election this fall, I am reminded of two points:

1. This time two years ago, a suave, urbane, debonair, yet intrepidly plucky candidate named Barack Obama worked fervently to close the deal, selling the American people on his Vision, “Change That You Can Believe In.” It sounded good at the time. Moreover, President Obama actually implemented several big change shifts, including the Stimulus Package, Automotive Industry Rescue, and Healthcare Reform.

2. On September 19, 2007 I wrote a post entitled, “Is The Foundation Crumbling;” a discussion about the disparity in mortgage loans in America. That edition of the blog referenced several sources that documented a dual standard in approving mortgage loans. The data, emanating from a variety of experts and institutions painted a clear picture that minorities, armed with similar and often superior levels of credit-worthiness were more likely than whites to have their applications for mortgage loans rejected.

Fast-forward two years from the season of Mr. Obama’s 2008 Primary, and two and two-thirds years from my 2007 blog, and we find our nation mired nearer the down-side of a prolonged recession than at any point that could be called a legitimate recovery. Not surprisingly, the pattern of disparity, evident in mortgage lending in 2007 is just as apparent in today’s foreclosure trends and rates.

The ever desirable “American Dream” of home ownership, first coined that by James Truslow Adams in 1931, was shown, by mounds of disturbing data, to be more elusive to obtain by African Americans than by whites. Recent research and evidence document that just as African Americans face a disproportionately steep curve on the front end of the home ownership attainment curve, they are also victims on the back end; ending up with higher rates of foreclosure, getiing foreclosed more quickly, and foreclosed at lower thresholds, even when they possess equivalent credit scores, comparable credit histories, and when they have similar assets.

One recent Washington Post report noted that research by the National Community Reinvestment Coalition (NCRC) found that minority homeowners in the Washington, DC area were more likely to be foreclosed, regardless of income or credit scores. Not only were African Americans in this area 20% more likely to face foreclosure than whites, Latino’s were 90% more likely. Coincidentally, Latinos and blacks were 1.7 and 1.8 times more likely, respectively, than whites to have bee assigned subprime loans. Those figures translate to 70% and 80% higher likelihood. This is yet another instance where the disparity exists across credit scores, income, and loan size. The coalition looked at roughly 100,000 mortgage loans in the area from 2004 to 2008. Similar studies found comparable results in Boston, Chicago, and Baltimore. Several industry experts concede the pattern is one that can be found in any city.

So what is the point in raising this issue now, you ask? I am glad I was able to impute your infectious level of interest in securing the answer to that question. Quite simply, for every person who has said (or thought, or wanted to say), “I’m so tired of you people talking about discrimination,” key points (and there are several) include these:

• Discrimination is alive and well; a very basic part of our very everyday existence; as mortgage and foreclosure
  data underscore

• Living in a post-Obama America has not extinguished discrimination

• America is not a post-racial society; believe that

• Ignoring discrimination is not a prescription for making it go away

• Out of sight equates to out of mind; the only way to address this issue is to refuse to act as if it is an acceptable
  condition

America is a glorious nation. We have created a standard of living that is the envy of the world. But the world is dynamic; not standing still. We are challenged every day to think and work strategically, innovatively, and perhaps most important, purposefully. We must enhance our skill sets, improve ourselves, and continue to focus on building sustainable communities. Satchel Paige once said, “Don’t look back. Someone might be gaining on you.” Perhaps in his day, that was sage advice. But at this moment in time, it is imperative to take stock constantly, and to survey 360 degrees.

If we are to build sustainable communities, we must develop and implement a sound and constructive housing policy, based upon living wages, affordable housing, non-discriminatory access to credit, and practices that support home ownership, rather than foreclosure. To do otherwise is to ensure, “The More Things Change…The More They Stay The Same!”

I’m done; holla back!

Read my blog anytime by clicking the link: http://thesphinxofcharlotte.blogspot.com. A new post is published each Wednesday. For more detailed information on a variety of aspects relating to this post, consult the links below:

http://thecharlottepost.com/index.php?src=news&srctype=detail&category=Business&refno=2534

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/27/AR2010042705238.html

http://www.google.com/search?hl=en&source=hp&q=disparity+in+mortgage+forclosures+among+blacks+and+latinos&aq=f&aqi=&aql=&oq=&gs_rfai

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/27/AR2010042705238.html?wpisrc=nl_headline

http://washingtonindependent.com/80845/survey-finds-racial-disparities-under-white-house-anti-foreclosure-program

http://theticasystems.com/blog/?p=16

http://www.thehousingcenter.org/All-News/Racial-Ethnic-Disparities-Remain-in-Ohio-Mortgage-Lending.html

http://www.nytimes.com/2007/10/15/nyregion/15subprime.html

http://www.irpumn.org/website/projects/index.php?strWebAction=project_detail&intProjectID=51

http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6WJR-45S9466-8&_user=10&_coverDate=12%2F31%2F1995&_rdoc=1&_fmt=high&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1322750473&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=164ded07a73ce88910c4a35dc50926e1

http://ips.jhu.edu/pub/Racial-Disparity-Still-Haunts-Housing-Market

http://www.clevelandfed.org/Community_Development/publications/CRReport/2009_1/03_23_09.cfm

http://www.chicagoreporter.com/index.php/c/Web_Extras/d/An_Equal_Opportunity_To_Pay_More

http://www.huduser.org/Publications/pdf/brd/12Bunce.pdf

http://www.credit.com/news/housing-market/2010-04-28/report-shows-foreclosure-discrepancies-along-racial-lines.html