Protecting Fair Lending Is Key To Our Economic Recovery

Most Americans correctly understand that the economic meltdown was caused by a perfect storm of misconduct in the lending and financial industries and inadequate rules and enforcement.  A 2010 Pew Financial Reform Project poll, for example, found that American likely voters overwhelmingly blamed banks for making unsustainable mortgages (42%) and too little regulation of Wall Street (24%) for the crisis.

Fewer are aware, however, of the role that racial bias and discrimination by lenders and brokers played in creating the crisis.  Understanding that role and the tools available to correct it is key to ensuring our nation's full economic recovery.

Despite the progress we've made as a nation toward the goal of equal opportunity for all, significant barriers remain, especially when it comes to mortgage lending by banks and brokers.  In a 2005 report using federal data that presaged the current crisis, for example, The Opportunity Agenda, the National Community Reinvestment Coalition, and the Poverty and Race Research Action Council warned that-even controlling for income-African-American and Latino borrowers were significantly more likely to be sold high cost, subprime loans than whites, despite the fact that as many as 50% of those borrowers qualified for prime loans. Racial inequity in lending actually increased with borrower income levels, and with the degree of neighborhood segregation.

Loans in these communities were more costly, and were frequently predatory, carrying hidden fees and conditions or marketed through deceptive practices.  Some, for example, were designed with built-in rate adjustment features making them unsustainable over the loan's lifespan.

More recently, a series of lawsuits and settlements have revealed pervasive patterns of racial discrimination in home lending.  In December 2011, for example, the U.S. Department of Justice reached the largest fair lending settlement in its history with the lender Countrywide.  The Department says that Countrywide discriminated on the basis of race and national origin against qualified African-American and Hispanic borrowers between 2004 and 2008, charging more than 200,000 of these borrowers higher fees and interest rates than non-Hispanic white borrowers, and steering borrowers of color into subprime loans.

The Justice Department has settled similar discrimination cases against AIG Federal Savings Bank, Wilmington Finance Inc., PrimeLending, C&F Mortgage Corporation, Midwest BankCentre, Citizens Republic Bancorp, Inc., and others, reinforcing the reality that these practices are pervasive.

Why would subprime lenders disproportionately target minority communities for risky loans and, often, deceptive and predatory lending practices?  There are several possibilities.  Many minority neighborhoods, even middle-classed ones, lack banks or other traditional lending institutions, making them more susceptible to exploitation.  People of color are more likely to be first generation homebuyers, with fewer sources of information, experience, or advice.  Many lenders assume them to be poor credit risks, even when they are well qualified for traditional loans.

Lenders' discriminatory treatment toward communities of color previewed and paralleled exploitative practices that they visited upon moderate-income white communities, senior citizens, military servicemembers, and more broadly. Today, consequently, we are all in it together, with some two million homes in foreclosure.  In addition to homeowners, the mortgage crisis is displacing millions of renters whose landlords are in default.

Fortunately, solutions exist that can put homeownership back on track, repair devastated communities, and restore the promise of equal opportunity and fair housing for all Americans.  Just as the Obama administration has correctly insisted on a review of loans to servicemembers, for instance, they should demand a review of loans in communities with high concentrations of discriminatory and predatory loan practices.  The administration should direct the Treasury Department to issue long-overdue civil rights and fair housing regulations for programs it oversees.  And Congress should modernize the Community Reinvestment Act to reach a wider range of institutions and to strengthen equal opportunity protections.

Other needed reforms include increasing homeowners' access to financial counseling, reducing the principal of loans owned or backed by Fannie Mae and Freddie Mac, and maintaining a government role in the secondary mortgage market to ensure that qualified working Americans of all races have access to 30-year fixed mortgages going forward.

Acknowledging the role that racial bias has played in the financial and mortgage crisis is crucial to understanding the scope and scale of that crisis.  Concrete steps toward greater and more equal opportunity for all are important to ending it.

How 'Un-American' are Peter King's Congressional Hearings?

From the Restore Fairness blog-

On Friday, March 4, two elderly Sikh men were gunned down without provocation while they were out for a casual stroll in a suburb of Sacramento. One of them, Surinder Singh (67), died immediately while his friend Gurmej Atwal (78), who was shot twice in the chest, is said to be in critical condition. The police who are investigating the attack have called on any witnessed to come forward and said that while they are still searching for evidence, there is a high probability that the there was a “hate or bias motivation for the crime.” This unfortunate attack took place just days before Rep. Peter King (R-NY) began his controversial House Homeland Security Committee hearings on the “The Extent of Radicalization” among American Muslims. With the upcoming 10th year anniversary of the 9/11 attacks and the endless spate of hate crimes against minority groups, it is difficult to ignore the implications that this Congressional hearing will have on the future of this country.

In the aftermath of 9/11,  heightened national security measures and increased suspicion of immigrant communities have placed a harsh spotlight on Muslim Americans as well as the wider South Asian and Arab American communities, deeply impacting the ways in which these communities are perceived and damaging their sense of national identity.

The first of the King hearings took place in Washington D.C. yesterday. Rep. Peter King said that he initiated these hearings in response to a string of arrests in 2010 concerning Muslim Americans who were connected to intercepted plots against American targets. In an interview with the Associated Press, King stated-

There is a real threat to the country from the Muslim community and the only way to get to the bottom of it is to investigate what is happening.

The committee yesterday heard from a panel of witnesses that argued for and against the premise of the hearings. Those who argued that the country needs to be more vigilant about the “radicalization” of the Muslim community included Dr. M Zuhdi Jasser, a doctor and Navy veteran who called on his fellow Muslims to be more outspoken against radical Islam, and Abdirizak Bihi, a Somali American activist whose nephew joined a militant group in Somalia and was subsequently killed in 2009. During the hearing, the most pointed questions against the premise came from Representatives who raised concerns over why other extremist groups – affiliated with various religions – were not even being considered by King and his committee. Speaking to the press after the hearing yesterday, King called it a success, emphasizing that the purpose was to “inform, not to inflame.”

The run-up to the hearings saw a very polarized response, with groups like Fox News expressing substantial support for them, while human rights advocates consistently condemned them. The greatest criticism of the hearings was not that extremist acts of terror pose a threat to national security and need to be investigated, but that King’s approach is biased and isolationist. The criticism holds that by scapegoating a community based on their religious affiliation, the King hearings will have widespread repercussions on how American Muslims will be perceived by the wider public. For a community that is already the subject of suspicion and profiling, the Congressional hearings, by calling for greater accountability for American Muslims above any other group, has very real implications for community identity, public perception, integration and collective healing.

One of the most vocal opponent of the hearings is the country’s largest Muslim civil rights and advocacy organization, The Council on American-Islamic Relations (CAIR), a group that Peter King has accused of conspiring with radical Islamist groups. In addition to asserting their identity as a peaceful organization, CAIR said that they would have supported the hearings if they were “balanced and fair.” Also opposing King’s approach to the issue is the civil rights organization, the Southern Poverty Law Center (SPLC), that stated in their 2010 annual report on “hate and extremism” that the “radical right in America expanded explosively in 2010,” as the number of hate groups topped 1,000.

A number of critics also held that this kind of focalized criticism of a specific community could result in the loss of trust these groups have towards law enforcement agencies and the government, impeding the work of law enforcement and thus work against ensuring the safety of all communities. At the hearing, Rep. Keith Ellison (D-MN), the first Muslim member of Congress, gave an emotional testimony about Mohammad Salman Hamdani, a NYPD cadet who was under suspicion for being involved with the attacks even as died trying to help victims on September 11, 2001. Breaking into tears, Ellison described -

After the tragedy…some people tried to smear his character … solely because of his Islamic faith. Some people spread false rumors and speculated that he was in league with the attackers because he was a Muslim. But it was only when his remains were identified that these lies were exposed. Mohammad Salman Hamdani was a fellow American who gave his life for other Americans. His life should not be identified as just a member of an ethnic group or just a member of a religion, but as an American who gave everything for his fellow Americans.

This anecdote, from an event still fresh in public memory, highlights the deeply damaging impact that continued demonization of an entire religious group can and does have on people’s lives. Moreover, by coming from an institutionalized source such as the House of Representatives (despite a marked distance by the Obama administration), the hearings put out a very strong message to the American public, and need to be understood for the authority that they wield. Even after Rep. King diluted his more aggressive original agenda, the hearings signal and amplify a deep sense of suspicion towards one group of Americans. Especially when ratified by the political leaders of the country, such trends pose a threat to the fundamental American principles of dignity and respect towards everyone. And that, perhaps, is a bigger threat to national security, especially in these testing times.

For a lighter, yet insightful take on King’s track record and alleged hypocrisy in this issue, watch Jon Stewart’s analysis of the hearings.

Learn. Share. Act. Go to restorefairness.org

 

How 'Un-American' are Peter King's Congressional Hearings?

From the Restore Fairness blog-

On Friday, March 4, two elderly Sikh men were gunned down without provocation while they were out for a casual stroll in a suburb of Sacramento. One of them, Surinder Singh (67), died immediately while his friend Gurmej Atwal (78), who was shot twice in the chest, is said to be in critical condition. The police who are investigating the attack have called on any witnessed to come forward and said that while they are still searching for evidence, there is a high probability that the there was a “hate or bias motivation for the crime.” This unfortunate attack took place just days before Rep. Peter King (R-NY) began his controversial House Homeland Security Committee hearings on the “The Extent of Radicalization” among American Muslims. With the upcoming 10th year anniversary of the 9/11 attacks and the endless spate of hate crimes against minority groups, it is difficult to ignore the implications that this Congressional hearing will have on the future of this country.

In the aftermath of 9/11,  heightened national security measures and increased suspicion of immigrant communities have placed a harsh spotlight on Muslim Americans as well as the wider South Asian and Arab American communities, deeply impacting the ways in which these communities are perceived and damaging their sense of national identity.

The first of the King hearings took place in Washington D.C. yesterday. Rep. Peter King said that he initiated these hearings in response to a string of arrests in 2010 concerning Muslim Americans who were connected to intercepted plots against American targets. In an interview with the Associated Press, King stated-

There is a real threat to the country from the Muslim community and the only way to get to the bottom of it is to investigate what is happening.

The committee yesterday heard from a panel of witnesses that argued for and against the premise of the hearings. Those who argued that the country needs to be more vigilant about the “radicalization” of the Muslim community included Dr. M Zuhdi Jasser, a doctor and Navy veteran who called on his fellow Muslims to be more outspoken against radical Islam, and Abdirizak Bihi, a Somali American activist whose nephew joined a militant group in Somalia and was subsequently killed in 2009. During the hearing, the most pointed questions against the premise came from Representatives who raised concerns over why other extremist groups – affiliated with various religions – were not even being considered by King and his committee. Speaking to the press after the hearing yesterday, King called it a success, emphasizing that the purpose was to “inform, not to inflame.”

The run-up to the hearings saw a very polarized response, with groups like Fox News expressing substantial support for them, while human rights advocates consistently condemned them. The greatest criticism of the hearings was not that extremist acts of terror pose a threat to national security and need to be investigated, but that King’s approach is biased and isolationist. The criticism holds that by scapegoating a community based on their religious affiliation, the King hearings will have widespread repercussions on how American Muslims will be perceived by the wider public. For a community that is already the subject of suspicion and profiling, the Congressional hearings, by calling for greater accountability for American Muslims above any other group, has very real implications for community identity, public perception, integration and collective healing.

One of the most vocal opponent of the hearings is the country’s largest Muslim civil rights and advocacy organization, The Council on American-Islamic Relations (CAIR), a group that Peter King has accused of conspiring with radical Islamist groups. In addition to asserting their identity as a peaceful organization, CAIR said that they would have supported the hearings if they were “balanced and fair.” Also opposing King’s approach to the issue is the civil rights organization, the Southern Poverty Law Center (SPLC), that stated in their 2010 annual report on “hate and extremism” that the “radical right in America expanded explosively in 2010,” as the number of hate groups topped 1,000.

A number of critics also held that this kind of focalized criticism of a specific community could result in the loss of trust these groups have towards law enforcement agencies and the government, impeding the work of law enforcement and thus work against ensuring the safety of all communities. At the hearing, Rep. Keith Ellison (D-MN), the first Muslim member of Congress, gave an emotional testimony about Mohammad Salman Hamdani, a NYPD cadet who was under suspicion for being involved with the attacks even as died trying to help victims on September 11, 2001. Breaking into tears, Ellison described -

After the tragedy…some people tried to smear his character … solely because of his Islamic faith. Some people spread false rumors and speculated that he was in league with the attackers because he was a Muslim. But it was only when his remains were identified that these lies were exposed. Mohammad Salman Hamdani was a fellow American who gave his life for other Americans. His life should not be identified as just a member of an ethnic group or just a member of a religion, but as an American who gave everything for his fellow Americans.

This anecdote, from an event still fresh in public memory, highlights the deeply damaging impact that continued demonization of an entire religious group can and does have on people’s lives. Moreover, by coming from an institutionalized source such as the House of Representatives (despite a marked distance by the Obama administration), the hearings put out a very strong message to the American public, and need to be understood for the authority that they wield. Even after Rep. King diluted his more aggressive original agenda, the hearings signal and amplify a deep sense of suspicion towards one group of Americans. Especially when ratified by the political leaders of the country, such trends pose a threat to the fundamental American principles of dignity and respect towards everyone. And that, perhaps, is a bigger threat to national security, especially in these testing times.

For a lighter, yet insightful take on King’s track record and alleged hypocrisy in this issue, watch Jon Stewart’s analysis of the hearings.

Learn. Share. Act. Go to restorefairness.org

 

How 'Un-American' are Peter King's Congressional Hearings?

From the Restore Fairness blog-

On Friday, March 4, two elderly Sikh men were gunned down without provocation while they were out for a casual stroll in a suburb of Sacramento. One of them, Surinder Singh (67), died immediately while his friend Gurmej Atwal (78), who was shot twice in the chest, is said to be in critical condition. The police who are investigating the attack have called on any witnessed to come forward and said that while they are still searching for evidence, there is a high probability that the there was a “hate or bias motivation for the crime.” This unfortunate attack took place just days before Rep. Peter King (R-NY) began his controversial House Homeland Security Committee hearings on the “The Extent of Radicalization” among American Muslims. With the upcoming 10th year anniversary of the 9/11 attacks and the endless spate of hate crimes against minority groups, it is difficult to ignore the implications that this Congressional hearing will have on the future of this country.

In the aftermath of 9/11,  heightened national security measures and increased suspicion of immigrant communities have placed a harsh spotlight on Muslim Americans as well as the wider South Asian and Arab American communities, deeply impacting the ways in which these communities are perceived and damaging their sense of national identity.

The first of the King hearings took place in Washington D.C. yesterday. Rep. Peter King said that he initiated these hearings in response to a string of arrests in 2010 concerning Muslim Americans who were connected to intercepted plots against American targets. In an interview with the Associated Press, King stated-

There is a real threat to the country from the Muslim community and the only way to get to the bottom of it is to investigate what is happening.

The committee yesterday heard from a panel of witnesses that argued for and against the premise of the hearings. Those who argued that the country needs to be more vigilant about the “radicalization” of the Muslim community included Dr. M Zuhdi Jasser, a doctor and Navy veteran who called on his fellow Muslims to be more outspoken against radical Islam, and Abdirizak Bihi, a Somali American activist whose nephew joined a militant group in Somalia and was subsequently killed in 2009. During the hearing, the most pointed questions against the premise came from Representatives who raised concerns over why other extremist groups – affiliated with various religions – were not even being considered by King and his committee. Speaking to the press after the hearing yesterday, King called it a success, emphasizing that the purpose was to “inform, not to inflame.”

The run-up to the hearings saw a very polarized response, with groups like Fox News expressing substantial support for them, while human rights advocates consistently condemned them. The greatest criticism of the hearings was not that extremist acts of terror pose a threat to national security and need to be investigated, but that King’s approach is biased and isolationist. The criticism holds that by scapegoating a community based on their religious affiliation, the King hearings will have widespread repercussions on how American Muslims will be perceived by the wider public. For a community that is already the subject of suspicion and profiling, the Congressional hearings, by calling for greater accountability for American Muslims above any other group, has very real implications for community identity, public perception, integration and collective healing.

One of the most vocal opponent of the hearings is the country’s largest Muslim civil rights and advocacy organization, The Council on American-Islamic Relations (CAIR), a group that Peter King has accused of conspiring with radical Islamist groups. In addition to asserting their identity as a peaceful organization, CAIR said that they would have supported the hearings if they were “balanced and fair.” Also opposing King’s approach to the issue is the civil rights organization, the Southern Poverty Law Center (SPLC), that stated in their 2010 annual report on “hate and extremism” that the “radical right in America expanded explosively in 2010,” as the number of hate groups topped 1,000.

A number of critics also held that this kind of focalized criticism of a specific community could result in the loss of trust these groups have towards law enforcement agencies and the government, impeding the work of law enforcement and thus work against ensuring the safety of all communities. At the hearing, Rep. Keith Ellison (D-MN), the first Muslim member of Congress, gave an emotional testimony about Mohammad Salman Hamdani, a NYPD cadet who was under suspicion for being involved with the attacks even as died trying to help victims on September 11, 2001. Breaking into tears, Ellison described -

After the tragedy…some people tried to smear his character … solely because of his Islamic faith. Some people spread false rumors and speculated that he was in league with the attackers because he was a Muslim. But it was only when his remains were identified that these lies were exposed. Mohammad Salman Hamdani was a fellow American who gave his life for other Americans. His life should not be identified as just a member of an ethnic group or just a member of a religion, but as an American who gave everything for his fellow Americans.

This anecdote, from an event still fresh in public memory, highlights the deeply damaging impact that continued demonization of an entire religious group can and does have on people’s lives. Moreover, by coming from an institutionalized source such as the House of Representatives (despite a marked distance by the Obama administration), the hearings put out a very strong message to the American public, and need to be understood for the authority that they wield. Even after Rep. King diluted his more aggressive original agenda, the hearings signal and amplify a deep sense of suspicion towards one group of Americans. Especially when ratified by the political leaders of the country, such trends pose a threat to the fundamental American principles of dignity and respect towards everyone. And that, perhaps, is a bigger threat to national security, especially in these testing times.

For a lighter, yet insightful take on King’s track record and alleged hypocrisy in this issue, watch Jon Stewart’s analysis of the hearings.

Learn. Share. Act. Go to restorefairness.org

 

How 'Un-American' are Peter King's Congressional Hearings?

From the Restore Fairness blog-

On Friday, March 4, two elderly Sikh men were gunned down without provocation while they were out for a casual stroll in a suburb of Sacramento. One of them, Surinder Singh (67), died immediately while his friend Gurmej Atwal (78), who was shot twice in the chest, is said to be in critical condition. The police who are investigating the attack have called on any witnessed to come forward and said that while they are still searching for evidence, there is a high probability that the there was a “hate or bias motivation for the crime.” This unfortunate attack took place just days before Rep. Peter King (R-NY) began his controversial House Homeland Security Committee hearings on the “The Extent of Radicalization” among American Muslims. With the upcoming 10th year anniversary of the 9/11 attacks and the endless spate of hate crimes against minority groups, it is difficult to ignore the implications that this Congressional hearing will have on the future of this country.

In the aftermath of 9/11,  heightened national security measures and increased suspicion of immigrant communities have placed a harsh spotlight on Muslim Americans as well as the wider South Asian and Arab American communities, deeply impacting the ways in which these communities are perceived and damaging their sense of national identity.

The first of the King hearings took place in Washington D.C. yesterday. Rep. Peter King said that he initiated these hearings in response to a string of arrests in 2010 concerning Muslim Americans who were connected to intercepted plots against American targets. In an interview with the Associated Press, King stated-

There is a real threat to the country from the Muslim community and the only way to get to the bottom of it is to investigate what is happening.

The committee yesterday heard from a panel of witnesses that argued for and against the premise of the hearings. Those who argued that the country needs to be more vigilant about the “radicalization” of the Muslim community included Dr. M Zuhdi Jasser, a doctor and Navy veteran who called on his fellow Muslims to be more outspoken against radical Islam, and Abdirizak Bihi, a Somali American activist whose nephew joined a militant group in Somalia and was subsequently killed in 2009. During the hearing, the most pointed questions against the premise came from Representatives who raised concerns over why other extremist groups – affiliated with various religions – were not even being considered by King and his committee. Speaking to the press after the hearing yesterday, King called it a success, emphasizing that the purpose was to “inform, not to inflame.”

The run-up to the hearings saw a very polarized response, with groups like Fox News expressing substantial support for them, while human rights advocates consistently condemned them. The greatest criticism of the hearings was not that extremist acts of terror pose a threat to national security and need to be investigated, but that King’s approach is biased and isolationist. The criticism holds that by scapegoating a community based on their religious affiliation, the King hearings will have widespread repercussions on how American Muslims will be perceived by the wider public. For a community that is already the subject of suspicion and profiling, the Congressional hearings, by calling for greater accountability for American Muslims above any other group, has very real implications for community identity, public perception, integration and collective healing.

One of the most vocal opponent of the hearings is the country’s largest Muslim civil rights and advocacy organization, The Council on American-Islamic Relations (CAIR), a group that Peter King has accused of conspiring with radical Islamist groups. In addition to asserting their identity as a peaceful organization, CAIR said that they would have supported the hearings if they were “balanced and fair.” Also opposing King’s approach to the issue is the civil rights organization, the Southern Poverty Law Center (SPLC), that stated in their 2010 annual report on “hate and extremism” that the “radical right in America expanded explosively in 2010,” as the number of hate groups topped 1,000.

A number of critics also held that this kind of focalized criticism of a specific community could result in the loss of trust these groups have towards law enforcement agencies and the government, impeding the work of law enforcement and thus work against ensuring the safety of all communities. At the hearing, Rep. Keith Ellison (D-MN), the first Muslim member of Congress, gave an emotional testimony about Mohammad Salman Hamdani, a NYPD cadet who was under suspicion for being involved with the attacks even as died trying to help victims on September 11, 2001. Breaking into tears, Ellison described -

After the tragedy…some people tried to smear his character … solely because of his Islamic faith. Some people spread false rumors and speculated that he was in league with the attackers because he was a Muslim. But it was only when his remains were identified that these lies were exposed. Mohammad Salman Hamdani was a fellow American who gave his life for other Americans. His life should not be identified as just a member of an ethnic group or just a member of a religion, but as an American who gave everything for his fellow Americans.

This anecdote, from an event still fresh in public memory, highlights the deeply damaging impact that continued demonization of an entire religious group can and does have on people’s lives. Moreover, by coming from an institutionalized source such as the House of Representatives (despite a marked distance by the Obama administration), the hearings put out a very strong message to the American public, and need to be understood for the authority that they wield. Even after Rep. King diluted his more aggressive original agenda, the hearings signal and amplify a deep sense of suspicion towards one group of Americans. Especially when ratified by the political leaders of the country, such trends pose a threat to the fundamental American principles of dignity and respect towards everyone. And that, perhaps, is a bigger threat to national security, especially in these testing times.

For a lighter, yet insightful take on King’s track record and alleged hypocrisy in this issue, watch Jon Stewart’s analysis of the hearings.

Learn. Share. Act. Go to restorefairness.org

 

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