African American Business Loans

The effect of these policies may have afforded an array of opportunities to white Americans, but they had a very different effect on the African American population. The establishment of these policies contributed to a state of unequal and segregated housing among African Americans and whites referred to as the dual housing market. In a dual housing market, the price of any given home was assigned two separate prices depending on the race of the buyer. White families were being given substantially lower prices and more options by realtors for homes than African American families were. Realtors were at the root of this problem, “Chicago’s realtors were thus instrumental in the creation of a dual housing market both locally and nationally- that is, a “white” market of low

Up until the 1960s many African-American could not own any homes or get mortgages instead they had to buy their homes by contracts. The Home sellers made African-Americans pay high rates for the homes through contracts, and when they failed to pay, their homes were taken away. These high rates were meant to prevent blacks from owning any properties. In the article, Coates talks about Clyde Ross who migrated to the north looking for the protection of the law; but like many others who tried get to mortgages legally through loans, they were told that there was no “financing available” (Coates 58). Financing was indeed there, but it was only offered to whites not African-Americans. A lot of whites went to extreme measure to keep

Economically, African-Americans are still far behind compared to white people in the south. In the Jstor journals, Kenneth Ng and Nancy Virts write about a study on the income

The American way of life through homeownership has its roots in the 1950s, the war had just ended and houses were being mass produced. “Domestic Engineering (Oct. 1981) estimates that ‘Three out of five families became homeowners and suburban living became a national phenomenon.’” (Brohl 1). Owning a home quickly became the American way of life. Where did this leave African American families like Lena’s, they were excluded from towns and from being able to take out home loans that were exclusively for veterans and the rest of

We saw a video of how 1960s African Americans were being discriminated against getting home mortgages and getting contracts instead and were basically paying much more than their house were worth and, had rules like if they missed 3 payments they will be evicted from their house. Most of them didn’t even know they were a target of institutional racism. It is hard to believe that this was about 50 years ago and that the law was allowing for banks to let this happen. Even after protest and boycotts it took a while for this issue to get resolved.

In the Cuban community, lenders would give out loans to fellow Cubans out of a collective will to expand and cultivate Cuban enterprise. Cuban, along with other minorities, experienced discrimination when coming to the United States, so it was much more difficult for Cubans to access capital from more common commercial banks. The loans in this case are described as “character loans.” However, unlike the Dominican community in NYC, Cuban lenders relied on a lendee’s reputation “back home.” Hence, when a new wave of Cuban immigrants came to the US during the 70s, lenders began to cut back. Lenders did not share as deep a connection with these newcomers and therefore could not establish the trust that was needed to give out a

extended to the entire population. Based on Oliver and Shapiro’s study of Federal Reserve data, “…discrimination follows Blacks no matter where they want to live and how much they earn” (20). For instance, in 1991 the Federal Reserve performed a study of over 6 million residential mortgage applications by race and earnings, and the report resulted in a “systematic pattern of institutional discrimination in the nation’s banking system” (Oliver and Shapiro 19). Black applicants were rejected twice as much as white applicants. Hispanics were also included in the Federal Reserve study regarding mortgage discrimination, and the study found that Blacks and Hispanics were denied mortgages two to three times as much as Whites. Financial profiles

Therefore, I’m going to justify this information I have acquainted you with.First thing, you need to know is that I’m not against anyone I’m neither racist or bias.I was born in a city of diversity which is called New York City. However, the things I’m about to tell you may be uncomfortable or maybe even interesting.Digging deep into America’s seventeen trillion dollar economy and you’ll find fractures beneath the surface.The spoils are split unevenly between men and women, old and young. But, one of the most massive disparities is only skin deep.Everything you own houses, stocks, and cars are your wealth. According to “Blacks still far behind whites in wealth and income” by Tanzina Vega, In 2011 the wealth of the median white household was over $110,000. African American on average was 17 times less just over $6,314.” Housing has a lot to do with this massive separation.For the average American, their home is the most valuable

27. This document shows the poverty rates by race and ethnicity from 1959 to 2010 and how it has decreased over 51 years. In addition, it demonstrates a significant difference between the white and the black. The whites have maintained a consistent low percentage compared to the blacks that have made a major drop

As integration gained momentum, several factors were involved in the fall of the Negro Leagues. One of the most detrimental factors was solely economics. As society and businesses began to desegregate, more and more employers were not employing African Americans. The 1950s posed a new struggle for businesses, as white residents began the “White Flight” and fled to suburban areas, leaving the city centers mainly composed of African Americans. Just as white residents fled, so did capital. Businesses struggled and crime became more prevalent. This loss in capital caused previously black business to lose their source of labor since they were ultimately left unable to complete in the labor market. Additionally, most black businesses relied on largely

Black Wall Street was one of the most prominent displays of African American economical accomplishment and standing of the modern world in spite of the fact that American culture as a whole wasn't, and still isn't, supportive or conducive to the rise of minorities. The unprovoked hostility isn't new, but it is dangerous because it accommodates the behavior that is responsible for systematic discrimination and is the reason why were are permanently relegated to second class and seemingly destined to fail. The fact that this injustice is rationalized, accepted and ignored is the precise reason that African American ownership and community sustainability is vital in correcting the misrepresentation of us to the rest of the the world and continuing

In addition to the studies done on poverty in America, I turned my focused on poverty over the state of North Carolina. North Carolina has a poverty universe of 9,396,989 and a ninety percent confidence interval of 1,687,683 to 1,734,979. From these estimates you can conclude that around 17 percent of North Carolina citizens are below the poverty line. In the graph below you will notice that in North Carolina the rate of poverty amongst the minorities in this state is very high. The Hispanic or Latino origin has the highest poverty rate sitting at thirty four percent followed by American Indians and then African Americans. Majority of the citizens living under the poverty line in North Carolina are residing in small counties around the state.

This examination of poor housing areas also focusses on contemporary racial exploitation. Examples that can be seen in today’s era is the relationship between black customers and insurance and/or mortgage loans. (Lipsitz, 8). Regardless of who they are, data shows that they already pay more for insurance or mortgage than white people. (Lipsitz, 10 - 11). They have little insurance coverage for communities of larger black communities than compared to predominantly white communities. (Lipsitz 10). Although the black community of the present appears to have much more rights (such as being “possible” to obtain services that whites have access to) than compared to the slavery era of blacks, the constant witnessing of unfairness in economics can still be witnessed. With such obstacles, it increases the chance of foreclosure for black families and thus

A new study, based on censes figures from 1950 to 1980 shows that “the United States largest cities have growing concentration of black Americans living in property”. While the overall rate of property in the nation increased slightly in those years to about 13 percent in 1980, the number of people in property in the 50 cities jumped 12 percent at a time, when the cities were losing population. During this time the urban problems are getting worse at precisely the time the nation is doing less about them. Black living in property in major cities has become a big concern for many political scientists, who see the increasing isolation of the poor as perpetuating the

Simultaneously, the Community Reinvestment Act (CRA) of 1977 was forcing banks “to make loans to low-income borrowers, especially minorities and particularly African Americans, with a focus on home loans...In order to make acquisitions, open branches, and generally grow its business, a bank must have a satisfactory CRA rating” (Allison, 2013, pp. 55-6). This essentially forced banks to make riskier loans than they otherwise would have.