This is what institutional racism looks like.

Despite what you may hear from the Right-wing media, institutional racism is still a very real problem in the United States. And, it creates a vicious cycle that keeps minority families from rising out of poverty.

According to a recent study from the National Community Reinvestment Coalition, the racial makeup of neighborhoods in Baltimore is “the most significant predictor of whether a [mortgage] loan gets made.”

After widespread unrest following the death of Freddie Gray earlier this year, researchers began to look at causes of persistent, racial wealth disparities. They discovered that black families have a far more difficult time getting home loans in Baltimore, and banks are rejecting loans more often in black neighborhoods.

Researchers looked at government mortgage data and found that banks have issued twice as many loans to white people in Baltimore as they do to African Americans – regardless of income.

And, the President of the National Community Reinvestment Coalition, John Taylor, explained, “If lenders are not making loans in a community, the opportunities for people to work their way out of poverty is pretty slim.”

Without loans, communities miss out on investment and jobs, and without mortgages, black families are denied the opportunity to build generational wealth. That's why African American families continue to hold dramatically less wealth than white families, and that's why unemployment rates in cities like Baltimore continue to linger far above the national average.

This type of institutional racism exacerbates poverty, crime, and many other serious issues that plague the black community. And, those issues lead to more negative stereotypes, more police violence, and more of our fellow Americans feeling shut out of the system.

Racial disparities in loans and mortgages is extremely difficult to prove, but this research shows that red lining is still happening in this day and age. Now, the only thing left to do is make sure that this institutional racism comes to an end.

Comments

ChicagoMatt 7 years 2 weeks ago
#1
After widespread unrest following the death of Freddie Gray earlier this year

I think the Left's definitions of "widespread" and "unrest" are interesting. A few dozen people - maybe even a few hundred - protesting and/or rioting in a few blocks - maybe even a few square miles - contitutes "widespread unrest"?

By that definition, there's even more "widespread unrest" after sports championships.

Racial disparities in loans and mortgages is extremely difficult to prove, but this research shows that red lining is still happening in this day and age. Now, the only thing left to do is make sure that this institutional racism comes to an end.

If it's difficult to prove, then how can you force it to end? You're only pointing out a problem, but not offering a solution. That's just complaining.

Should the government set quotas on how many loans must be given to Blacks? Or maybe percentages?

In that case, how are you going to test someone's "Blackness"? In this day and age, can't anyone say they "feel Black today" when they apply for the loan? If gender identity is fliud, shouldn't racial identity be too?

ckrob's picture
ckrob 7 years 2 weeks ago
#2

As we know, fear and hate short-circuit our brain's rational functioning. What proportion of the nation's police department members listen primarily to Fox (be afraid) News?

Hephaestus's picture
Hephaestus 7 years 2 weeks ago
#3

What do mean comparing riots here and there?

The point is institutionalized racism

Akin to South Afican apartheid that to this day very sadly still exists in usa

I know personally american people that hate those who just happen to have black skin

Kend's picture
Kend 7 years 2 weeks ago
#4

The only reason loans are not granted is because the risk is too high. Maybe not burning down your neighbourhood every time you disagree with something would help as well. . No one wants to put a mortgage on a home that can't be insured.

RLTOWNSLEY's picture
RLTOWNSLEY 7 years 2 weeks ago
#5

Couldn't agree more with you Thom ! The real irony is that most of this institutional racism is driven by the same advocates who fully support a reduction in the rights of women to fully control their own medical decisions. They have long worked to establish a Theocracy where all actions are guided entirely by Christian religious dogma !

Mark J. Saulys's picture
Mark J. Saulys 7 years 2 weeks ago
#6

Rioting after sporting events may indeed be more widespread than after police murders and it is even more common - here in Chicago - amongst middle-class white brats. Every time the Bulls or Black Hawks win a championship it hits the fan. Doesn't seem to affect insurance rates though.
You can enforce and perhaps prove red lining is occurring by seeing if loans are being denied for having bad credit or unreliable means of repayment or because of their race by comparing data of black and white applicants.

RJ Schundler's picture
RJ Schundler 7 years 2 weeks ago
#7

If the Government feels that Loans that should be made are not being made, then they should pass a law that would let the would be "home owner" get a Mortage directly from Fanni Mae, by passing the banks altogether ... as I remember there was a small business that use to hire people in the local area around where the riots took place. They were good people, they did nothing wrong, yet the business was set on fire due to where it was, well the bank and insurance company lost .... so is it wise and responisble to do business in an area where do only to location a building can be set on fire?

RJ Schundler's picture
RJ Schundler 7 years 2 weeks ago
#8

It is not fear, it is experience .... studies have been done that a White Police officer is slower to draw his gun when faced by a blacks .... more blacks are killed by blacks, and those that want to live in peace want more police in their community rather then less. There are issues that promote black violents ... the NEA cares more for the teachers than for the students, and back teachers that do not do their jobs, causing a high rate of drop outs in the black community. Black communities should have SCHOOL CHOICE so that blacks can get as good of an education as wealthy whites.

RJ Schundler's picture
RJ Schundler 7 years 2 weeks ago
#9

RLROWNSLEY ... that is foolishness, it has little to do with religion, it has to do with the proper role of government .... unless a women was raped, she has a choice. Where poor people do not have a choice, is what school their children are going to go to .... a failing school fails the students and the community. Real "CHOICE" would be for the govenment to fund the school of the parents' CHOICE .... yet the institution racism seems to be with Progressives who do not want to let poor kids to be educated.

Mark J. Saulys's picture
Mark J. Saulys 7 years 2 weeks ago
#10

Schundler, riots like in Baltimore occur once every 40 years and only because racism in our society makes it more acceptable for police to kill blacks. "Black on black crime" is also a long term result of racism and the cycle of discriminational and poverty.
You may think "school choice" is a new idea but it has been tried and has failed. It is not a solution and makes education LESS attainable for poor kids.
Don't fall for the Fox News talking points, they are a fraud.

happyashell's picture
happyashell 7 years 2 weeks ago
#11

The way the economy is managed by monetary policy and government policy creates poverty too. It is explained in this article. Http://wp.me/p42WQA-7c

Kend's picture
Kend 7 years 2 weeks ago
#12

Mark, don't you agree that it starts with the parents. It doesn't matter how much money you throw at schools and home loans it will not get better until the parents take responsibility. We decidec to have our kids in a community school where the parents are more involved. If we needed something we all pitched in and found a way to get it done. We had more control and it was great and much less expensive. It sure doesn't help to have four kids from four different fathers none of which is around. It all starts at home or at least at the community level.

Kilosqrd's picture
Kilosqrd 7 years 2 weeks ago
#13

"Researchers looked at government mortgage data and found that banks have issued twice as many loans to white people in Baltimore as they do to African Americans – regardless of income." Thom H

Income is only one part of the equation Thom. Credit history plays a big part. If your credit history says you don't pay your debts, you are not going to get a loan, no matter what your income is. Debt to income ratio is another factor. You can have a lot of income but if you already have lots of obligations, your chances of obtaining more credit become slimmer. One more example of the progressive liberal side of the argument missing over half the total picture and then jumping to a pre-determined conclusion.

Mark J. Saulys's picture
Mark J. Saulys 7 years 2 weeks ago
#14

Kilosqrd, credit history is a legitimate criteria criteria to give or deny a loan, race is not. I wouldn't presume all the denials of African American applicants were due to unacceptable credit, anyway that's verifiable.
Kend, you're very simplistic, social problems affect many aspects of life. If mom and dad don't have a decent job - ultimately because of discrimination - and there is great, constant upheaval and insecurity in the home that affects all of home life a lot and the kids' orientation to education and the parents' too.
Many factors are involved, here in Illinois and elsewhere local property taxes determine school appropriation and budgets so that poorer communities in the state and poorer neighborhoods in Chicago, who need education the most, get funding for their schools at a corresponding, very much lower level than middle class and wealthy ones. In Chicago one public high school in a very wealthy area has state of the art everything, electronic devices replacing books, etc. while high schools in poorer communities can't afford books. The disparities are positively criminal!
Also, African-Americans have been denied education for so many generations that it may've just become more acceptable in black society for a black teenager to quit school and find a job - especially when your school can't even afford books and it doesn't seem like there is much prospect for you to compete with wealthier kids. And it may be more acceptable in black society that the job be in a criminal enterprise given the discrimination in hiring that is prevalent combining with the dismal educational prospects and discrimination in housing.
Also, government policy undermined poor families forever by cutting a family off welfare if there was a man or husband living in the house.
So a lot of things figure in and I don't really think the one you mentioned is too relevant at all.

Kilosqrd's picture
Kilosqrd 7 years 2 weeks ago
#15

Mark, reread Thom's piece. Thom claims blacks are being denied loans strictly on race. I will not deny that it is a possibility in some cases. However, he completely overlooks the other criteria as if those are non factors or don't exist at all. You did it too.

Kilosqrd's picture
Kilosqrd 7 years 2 weeks ago
#16

"Also, African-Americans have been denied education for so many generations..."

Been denied? What are you....living in the 1930's? Look around dude, black people and all other races have never had it better as far as educational opportunities. I see people of all races in hgh places of authority, business, politics etc. How did they achieve their status/position? Oh, I guess they had white privelege.

Mark J. Saulys's picture
Mark J. Saulys 7 years 2 weeks ago
#17

Kilosqrd, that is one of the most obtuse comments I have ever seen. I just told you what happens in Chicago, dude.
Thom said that the denials of loans are largely because of race and that's provable, demonstrable and true. You, because you have a bad opinion of black people, have decided that it's because they all have bad credit.
That would also be provable and demonstrable if it were true and nobody, no liberals or lefties, would be taking issue with it. Liberals and lefties don't make those kind of unsupportable arguments. Only right winger racists and frauds do.

Mark J. Saulys's picture
Mark J. Saulys 7 years 2 weeks ago
#18

And yes, African-Americans have been denied education for generations and continue to be - in the ways I mentioned, the institutional ways.
Do you read what I write?

Ou812's picture
Ou812 7 years 2 weeks ago
#19

Saulys unless you cite sources, everything you wrote here is your opinion

Mark J. Saulys's picture
Mark J. Saulys 7 years 2 weeks ago
#20

Ou812, I give you facts, I give you leads - not links. Everything isn't on the internet and just because there isn't a link to it doesn't mean it doesn't exist and many links are to authoritatively dressed up falsehoods - as you well know ;^)).
I'm an old school oldster and do things the old fashioned way, from memory. You don't have to accept it at face value but I challenge you to refute or disprove it.
Anyway, my opinions are much better founded, and I cite facts to back them up, than the purely unfounded conjecture of the racists in this thread.
Anyway, what are your sources? My opinions are better founded than the contrary ones.

Mark J. Saulys's picture
Mark J. Saulys 7 years 2 weeks ago
#21

My opinions ate your opinions with lots of onions.

JKRASNER's picture
JKRASNER 7 years 1 week ago
#22

Brothers Allegedly Inspired by Trump to Attack Homeless Man Arraigned

http://www.necn.com/news/new-england/Brothers-Inspired-by-Trump-to-Be-In...

Thom's Blog Is On the Move

Hello All

Today, we are closing Thom's blog in this space and moving to a new home.

Please follow us across to hartmannreport.com - this will be the only place going forward to read Thom's blog posts and articles.

From The Thom Hartmann Reader:
"Thom Hartmann channels the best of the American Founders with voice and pen. His deep attachment to a democratic civil society is just the medicine America needs."
Tom Hayden, author of The Long Sixties and director, Peace and Justice Resource Center.
From The Thom Hartmann Reader:
"Thom Hartmann seeks out interesting subjects from such disparate outposts of curiosity that you have to wonder whether or not he uncovered them or they selected him."
Leonardo DiCaprio, actor, producer, and environmental activist
From Screwed:
"I think many of us recognize that for all but the wealthiest, life in America is getting increasingly hard. Screwed explores why, showing how this is no accidental process, but rather the product of conscious political choices, choices we can change with enough courage and commitment. Like all of Thom’s great work, it helps show us the way forward."
Paul Loeb, author of Soul of a Citizen and The Impossible Will Take a Little While