Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

When the Dream of Owning a Home Became a Nightmare
New York Times ^ | October 19, 2019 | Keeanga-Yamahtta Taylor

Posted on 10/19/2019 4:22:22 PM PDT by karpov

When tens of thousands of African-Americans held the keys to their first homes in the early 1970s as part of a new federal program that encouraged black homeownership, they thought they were about to fulfill the American dream. Instead they got an American nightmare.

The story begins with the urban uprisings of the late 1960s, which were reactions to decades of poverty, racism and a lack of opportunity. According to the Kerner Commission, a major cause was government-sponsored housing segregation that had confined African-Americans to rental housing in urban neighborhoods while subsidizing white flight to the suburbs. Black people, too, wanted to enjoy the benefits of homeownership and the uprisings pressured Washington to take that seriously.

Richard Nixon gave voice to a shift in government policy in 1968 when he declared that “people who own their own homes don’t burn their neighborhoods.” The Housing and Urban Development Act of 1968 created policies that let low-income black renters, long excluded from conventional mortgages and other standard ways of financing homes, become homeowners.

At the core of the law were three components: A down payment cost only $200; a buyer’s mortgage was linked to her income, not her house’s value; and the interest rate on the loan, subsidized by the federal government, was capped at 1 percent.

It was a boon — at least for banks and the real estate industry.

The Federal Housing Administration backed mortgages arranged through this program and bankers didn’t have to worry about foreclosures or defaults because if buyers fell behind on their payment, Washington would simply pay off the loan. An unprecedented number of black renters in Philadelphia, Detroit, Chicago and other urban centers became homeowners.

But the program was troubled from the start. The conditions that allowed for homeownership also set the groundwork for fraud.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: democrats; fakenames; fakenews; housing; hud; keeangayamahtta; liberalagenda; newyorkslimes
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-82 next last
Bankers will make a lot of bad loans if you insulate them from the consequences. This caused the 2008 financial crisis too. "Insanity is doing the same thing over and over again and expecting different results."
1 posted on 10/19/2019 4:22:22 PM PDT by karpov
[ Post Reply | Private Reply | View Replies]

To: karpov

I thought the banks were ordered to make loans with lower financial standards so that it would ‘be fair,’ against their better business sense but mandated by the House, no?


2 posted on 10/19/2019 4:26:54 PM PDT by bboop (does not suffer fools gladly)
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov

“Keeanga-Yamahtta”

Someone overturned a scrabble box to pick out a name?


3 posted on 10/19/2019 4:27:18 PM PDT by dynachrome (Build the wall, deport them all. And send her back!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov
...while subsidizing white flight to the suburbs.

Say what?

4 posted on 10/19/2019 4:28:25 PM PDT by jeffc (The U.S. media are our enemy)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dynachrome
😂
5 posted on 10/19/2019 4:29:56 PM PDT by ex91B10 (Powered by the Penguin)
[ Post Reply | Private Reply | To 3 | View Replies]

To: karpov
Once upon a time the chant was "banks unfairly deny mortgages to minorities".Then came Attorney General Re No who announced that any bank that denies a mortgage to a "minority" will have the weight of the US Government fall on its head.Banks got the message.

Then,about 15 years later,the chant changed to "predatory lending".

Banks just can't seem to get it right in the opinion of the Rat Party.

6 posted on 10/19/2019 4:31:39 PM PDT by Gay State Conservative (A joke: Brennan,Comey and Lynch walk into a Barr...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bboop

See Post #6


7 posted on 10/19/2019 4:32:26 PM PDT by Gay State Conservative (A joke: Brennan,Comey and Lynch walk into a Barr...)
[ Post Reply | Private Reply | To 2 | View Replies]

To: karpov

The rest of us get to pay for those bad loans.


8 posted on 10/19/2019 4:32:41 PM PDT by bgill
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov
Richard Nixon gave voice to a shift in government policy in 1968 when he declared that “people who own their own homes don’t burn their neighborhoods.

Well, that theory has been disproven.

9 posted on 10/19/2019 4:33:57 PM PDT by ealgeone
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov
A down payment cost only $200; a buyer’s mortgage was linked to her income, not her house’s value; and the interest rate on the loan, subsidized by the federal government, was capped at 1 percent.

Wow...wish I could have gotten that deal.

10 posted on 10/19/2019 4:36:13 PM PDT by ealgeone
[ Post Reply | Private Reply | To 1 | View Replies]

To: dynachrome
Keeanga-Yamahtta Taylor

Ahh, the days when reporters had names like "H.L. Mencken."

11 posted on 10/19/2019 4:36:22 PM PDT by JennysCool
[ Post Reply | Private Reply | To 3 | View Replies]

To: bgill

Which is why we must get rid of the Federal Reserve. Bank decisions should benefit or cost the bank officials, board directors, and stockholders only. American taxpayers must stop the nonsense of bailing out bad decision makers.


12 posted on 10/19/2019 4:40:41 PM PDT by Demanwideplan
[ Post Reply | Private Reply | To 8 | View Replies]

To: karpov

If you don’t lend to them, you’re a racist.

If you DO lend to them, you’re a predatory lender.

= No Win


13 posted on 10/19/2019 4:43:07 PM PDT by Professional
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov

Bankers will make a lot of bad loans if you insulate them from the consequences

This is the mechanism behind “student loans”.


14 posted on 10/19/2019 4:43:46 PM PDT by CIB-173RDABN (I am not an expert in anything, and my opinion is just that, an opinion. I may be wrong.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: JennysCool
A hyphenated first name, that's a new one.

Seems to be a whole lot of anger there, just a guess.

15 posted on 10/19/2019 4:44:35 PM PDT by Fungi
[ Post Reply | Private Reply | To 11 | View Replies]

To: karpov

Is part of what’s going on, that people misunderstand what’s involved in home ownership?

For example, this house in the article needed lots of repairs and maintenance. The mother in the story may not have realized that it is her responsibility, her money needed, to maintain the home. If someone has been a renter their entire life, they may not understand/appreciate the fact, that the homeowner pays for all repairs out of pocket.


16 posted on 10/19/2019 4:45:22 PM PDT by Dilbert San Diego
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov
You are either a troll or you have a poor grasp on what really happened. Banks were forced into making loans available regardless of the realities.

Plenty of proof to back that up

17 posted on 10/19/2019 4:45:26 PM PDT by Robert DeLong
[ Post Reply | Private Reply | To 1 | View Replies]

To: Fungi

YOW!

Lots of “Keep Me From Killing People” drugs going on in THAT head!


18 posted on 10/19/2019 4:46:25 PM PDT by JennysCool
[ Post Reply | Private Reply | To 15 | View Replies]

To: ealgeone

To be fair, you don’t really own your home until you pay off your mortgage.


19 posted on 10/19/2019 4:46:35 PM PDT by SamAdams76
[ Post Reply | Private Reply | To 9 | View Replies]

To: Robert DeLong

Yup,I believe the Community Reinvestment Act was a big part of that...as was Attorney General Re No.


20 posted on 10/19/2019 4:49:24 PM PDT by Gay State Conservative (A joke: Brennan,Comey and Lynch walk into a Barr...)
[ Post Reply | Private Reply | To 17 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-8081-82 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson