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Reparations Must Include the Costs of Predatory Lending

NNPA NEWSWIRE — “Although in some respects racial equality has improved in the intervening years,” states the report, “in other respects today’s Black citizens remain sharply disadvantaged in the criminal justice system, as well as in neighborhood resources, employment, and education, in ways that seem barely distinguishable from those of 1968.”

Published

3 years ago

July 23, 2019

Oakland Post

In terms of lost household wealth, nationally foreclosures took $23,150. But for families of color, the household loss was nearly double — $40,297. (Photo: iStockphoto / NNPA)

New university studies track high costs of discriminatory housing

By Charlene Crowell, Communications Deputy Director with the Center for Responsible Lending

In recent years, the spate of homicides linked to questionable uses of deadly weapons and/or force, have prompted many activist organizations to call for racial reparations. From Trayvon Martin’s death in Florida, to Michael Brown’s in Missouri, Eric Garner’s in New York and many other deaths — a chorus of calls for reparations has mounted, even attracting interest among presidential candidates.

While no amount of money could ever compensate for the loss of Black lives to violent deaths, a growing body of research is delving into the underlying causes for high poverty, low academic performance and — lost wealth. Public policy institutes as well as university-based research from the University of California at Berkeley and Duke University are connecting America’s racial wealth gap to remaining discriminatory policies and predatory lending.

This unfortunate combination has plagued Black America over multiple decades. And a large part of that financial exploitation is due to more than 70 years of documented discriminatory housing.

The Road Not Taken: Housing and Criminal Justice 50 Years After the Kerner Commission Report, returns to the findings of the now-famous report commissioned by President Lyndon Johnson. In the summer of 1967, over 150 race-related riots occurred. After reviewing the 1968 report’s recommendations and comparing them to how few were ever enacted, the Haas Institute tracks the consequences of recommendations that were either ignored, diluted, or in a few cases pursued. Published by Berkeley’s Haas Institute for Fair and Inclusive Communities, it weaves connections between education, housing, criminal justice – or the lack thereof.

“Although in some respects racial equality has improved in the intervening years,” states the report, “in other respects today’s Black citizens remain sharply disadvantaged in the criminal justice system, as well as in neighborhood resources, employment, and education, in ways that seem barely distinguishable from those of 1968.”

In 1968, the Kerner Commission report found that in cities where riots occurred, nearly 40% of non-white residents lived in housing that was substandard, sometimes without full plumbing. Further, because Black families were not allowed to live wherever they could afford, financial exploitation occurred whether families were renting or buying a home.

As many banks and insurance companies redlined Black neighborhoods, access to federally-insured mortgages were extremely limited. At the same time, few banks loaned mortgages to Blacks either. This lack of access to credit created a ripe market for investors to sell or rent properties to Black families, usually in need of multiple needed repairs. Even so, the costs of these homes came at highly inflated prices.

In nearly all instances, home sales purchased “on contract” came with high down payments and higher interest rates than those in the general market. The result for many of these families was an eventual inability to make both the repairs and the high monthly cost of the contract. One late or missed payment led to evictions that again further drained dollars from consumers due to a lack of home equity. For the absentee owner, however, the property was free to sell again, as another round of predatory lending. As the exploitive costs continued, the only difference in a subsequent sale would be a home in even worse physical condition.

The Plunder of Black Wealth in Chicago: New Findings on the Lasting Toll of Predatory Housing Contracts, also published this May, substantiates recent calls for reparations, as it focuses on predatory housing contracts in Illinois’ largest city. Published by Duke University’s Samuel DuBois Cook Center on Social Equity, this report analyzed over 50,000 documents of contract home sales on the Windy City’s South and West Sides and found disturbing costs of discriminatory housing in one of the nation’s largest cities, as well as one of the largest Black population centers in the nation. Among its key findings:

During the 1950s and 1960s, 75-95% of Black families bought homes on contract;
These families paid an average contract price that was 84% more than the homes were worth;
Consumers purchasing these homes paid an additional $587 each month above the home’s fair market value;
Lost Black Chicago wealth, due to this predatory lending ranged between $3.2-$4 billion.

“The curse of contract sales still reverberates through Chicago’s Black neighborhoods (and their urban counterparts nationwide,” states the Duke report, “and helps explain the vast wealth divide between Blacks and Whites.”

Now fast forward to the additional $2.2 trillion of lost wealth associated with the spillover costs from the foreclosure crisis of 2007-2012. During these years, 12.5 million homes went into foreclosure. Black consumers were often targeted for high-cost, unsustainable mortgages even when they qualified for cheaper ones. With mortgage characteristics like prepayment penalties and low teaser interest rates that later ballooned to frequent and eventually unaffordable adjustable interest rates, a second and even worse housing financial exploitation occurred.

A 2013 policy brief by the Center for Responsible Lending, found that consumers of color – mostly Black and Latinx – lost half of that figure, $1.1 trillion in home equity during the foreclosure crisis. These monies include households who managed to keep their homes but lost value due to nearby foreclosures. Households who lost their homes to foreclosures also suffered from plummeting credit scores that made future credit more costly. And families who managed to hold on to their homes lost equity and became upside down on their mortgages – owing more than the property is worth. Both types of experiences were widespread in neighborhoods of color.

In terms of lost household wealth, nationally foreclosures took $23,150. But for families of color, the household loss was nearly double — $40,297.

CRL’s policy brief also states. “We do not include in our estimate the total loss in home equity that has resulted from the crisis (estimated at $7 trillion), the negative impact on local governments (in the form of lost tax revenue and increased costs of managing vacant and abandoned properties) or the non-financial spillover costs, such as increased crime, reduced school performance and neighborhood blight.”

As reparation proposals are discussed and debated, the sum of these financial tolls should rightly be a key part. While the Kerner Commission recommendations remain viable even in 2019, it will take an enormous display of public will for them to be embraced and put into action.

“The Kerner Report was the ‘road not taken’, but the road is still there,” noted John A. Powell, the Hass Institute’s Director.

Charlene Crowell is the Communications Deputy Director with the Center for Responsible Lending. She can be reached at charlene.crowell@responsiblelending.org.

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COMMENTARY: Coach Saban, Shut Up and Coach

NNPA NEWSWIRE — Jackson State will continue to get its fair share of 5-Star recruits. Coach Prime and all HBCUs can offer an experience that Alabama certainly can’t. It’s nothing like an HBCU experience. This is just the beginning. We will continue to see 5-Star Black athletes signing with HBCUs.
The post COMMENTARY: Coach Saban, Shut Up and Coach first appeared on BlackPressUSA.

Published

3 weeks ago

June 5, 2022

admin

By Burl “The Coach” Jones, Sports Editor, Houston Forward Times

Recently, Alabama Head Football Coach Nick Saban made a statement that Texas A&M bought every player they signed with NIL (Name, Image, and Likeness) deals.

Alabama came in second in recruiting this year. That has rarely happened since Saban stepped on campus at Alabama. He also stated that Jackson State University, an HBCU coached by Deion Sanders, signed the #1 recruit in the country to a $1 million NIL deal.

The NIL phenomenon was created in June 2021 by the NCAA. This allows athletes to be paid for the use of their name, image, and likeness. Previously, the NCAA made billions in revenue off the backs of college athletes. With the advent of the NIL, expect a shift in the landscape of college football recruiting.

Schools like Texas A&M, Texas, and Oklahoma, have very rich boosters and alumni who have access to millions. They will come up with very creative ways to offer lucrative NIL deals to 5-star recruits. This apparently doesn’t sit well with Coach Saban, who is used to having his way, and getting most of the 5-Star recruits to sign with Alabama.

This will definitely level the playing field and gives schools like Texas A&M, that hasn’t won a National Championship in decades, a chance to recruit 5-Star athletes on a national level and could eventually lead to them winning a National Championship in the near future.

At least that’s what they hope in College Station.

As far as Coach Saban’s statement about Jackson State signing the #1 recruit in the country to a $1 million NIL deal is concerned, that was quickly debunked by Coach Prime, who immediately tweeted that he will address that lie. He followed that up with this statement:

“I haven’t talked to Coach Saban. I’m sure he tried to call. We need to talk publicly- not privately. What you said was public, that doesn’t require a private conversation. Let’s talk publicly and let everybody hear the conversation.”

Coach Saban is speaking from a place of privilege and bigotry. He is used to having his way and getting the players he wants. How dare a little old HBCU such as Jackson State get the #1 recruit in the country? It’s a slap in the face to all HBCUs to insist that they must pay a Black kid to attend an HBCU.

Paying recruits is certainly not new; it has been going on for years.

Former Houston Texan Travis Johnson, who was a 5-Star recruit, recently stated that Alabama offered him six figures in 2000 when he was being recruited.

“Y’all were the NIL before the NIL,” he said.

Jackson State will continue to get its fair share of 5-Star recruits. Coach Prime and all HBCUs can offer an experience that Alabama certainly can’t. It’s nothing like an HBCU experience. This is just the beginning. We will continue to see 5-Star Black athletes signing with HBCUs.

Coach Saban needs to be concerned about that pipeline that he had in Texas, getting those 5-Star recruits to leave the state. That oil money in Texas will be keeping those boys at home. Texas and Oklahoma will be joining the SEC in a few years and that will also influence Saban’s ability to recruit in Texas.

With all those factors coming into play, here is a bit of advice Coach Sabin:

SHUT UP AND COACH!!

“I’m just Telling It Like It Is!!”

The post COMMENTARY: Coach Saban, Shut Up and Coach first appeared on BlackPressUSA.

#NNPA BlackPress

COMMENTARY: Racism Rears Its Ugly Head in the Buffalo Shootings

NNPA NEWSWIRE — Racial tragedy struck Buffalo, New York, on May 14th. Hate came up from the ground and reared its inhumane and immoral head. Ten Black people were murdered by a White man who hated Black people. It’s that simple and that sad. Payton S. Gendron, 18 years old, was the shooter. He also injured 3 people as well during this shooting spree.
The post COMMENTARY: Racism Rears Its Ugly Head in the Buffalo Shootings first appeared on BlackPressUSA.

Published

3 weeks ago

June 5, 2022

admin

By James B. Ewers Jr. Ed.D., Houston Forward Times

Racism is a longstanding social illness in the United States of America. Seemingly, there is no cure for it.

It has been with us for as long as I can remember. The result of it has created heartache and heartbreak.

Lives have been lost and it has left the stain of disgrace on this country. Accomplishments, it could be argued, are sometimes overshadowed by our blatant disregard for some members of our beloved community.

I know for sure that racism will be around for as long as I live. It has been a part of my life experiences.

Unfortunately, and I say this with no pride, I have witnessed racism up close and personal.

I have been around long enough to watch the many levels of racism that exist in this country.

For example, we have had educational racism. Segregated schools were the norm until the case, Brown versus the Board of Education of Topeka ended it.

Did that stop us from getting an education?

The answer is a resounding no!

Black colleges, now called Historically Black Colleges and Universities (HBCUs), were founded in order that higher education was afforded to African Americans.

At this moment, HBCUs are the hottest and most talked about educational venue in the land.

Everybody wants to attend an HBCU. I am a graduate of an HBCU (Johnson C. Smith University), and I know the power and influence they have.

The right to vote has always been problematic for African Americans. It is a fundamental right for all Americans, according to the Founding Fathers.

The problem is that the ‘current fathers’ don’t see it that way.

Will that stop us?

The answer is another resounding no!

African Americans are now voting in record numbers and that trend will continue.

There are states in this union that are creating trumped-up rules to keep us from exercising our privilege at the polls.

Some in this country have taken racism below ground zero. There are people in our states who hate Black people and want to kill us.

That is a powerful statement, yet it is factual and true.

Interestingly, there are citizens who believe the opposite. I suspect their experiences are different, and they live in an almost contactless America.

If you are one of those people, pay close attention now.

Racial tragedy struck Buffalo, New York, on May 14^th.

Hate came up from the ground and reared its inhumane and immoral head.

Ten Black people were murdered by a White man who hated Black people.

It’s that simple and that sad.

Payton S. Gendron, 18 years old, was the shooter. He also injured 3 people as well during this shooting spree.

The victims were assaulted at a Tops Friendly Markets store and the victims ranged in ages from 20-86.

This crime of hate is unthinkable and was done with malicious intent.

The killer was not a Buffalo resident. He drove approximately 200 miles from Conklin, New York, to commit this heinous crime.

Gendron had already scouted out the place for his crime. He knew that many African Americans shopped at that location. That is sick beyond words.

According to reports, Police Commissioner Joseph Gramaglia said, “We found some things that show he was here in early March, and then again, we know he was here on Friday, basically doing reconnaissance on the area.”

Gramaglia added, “He was in the store, both on Friday and Saturday.”

These statements were made by him to CNN’s Erin Burnett.

Payton S. Gendron surrendered to police after this life-altering atrocity.

America, where are we headed? Only time will tell.

The post Racism Rears Its Ugly Head in the Buffalo Shootings appeared first on Houston Forward Times.

The post COMMENTARY: Racism Rears Its Ugly Head in the Buffalo Shootings first appeared on BlackPressUSA.

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American Petroleum Institute Lays Out Solutions to Rising Gas Prices

NNPA NEWSWIRE — A study of fact sheets provided by the American Petroleum Institute suggests that the complicated answer includes more production in America, which could add more supply. “More U.S. supply means relief for the global market,” Lem Smith, API’s vice president for Federal Relations, wrote in an op-ed.
The post American Petroleum Institute Lays Out Solutions to Rising Gas Prices first appeared on BlackPressUSA.

Published

3 weeks ago

June 5, 2022

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

The average price for a gallon of gasoline has hit record numbers in Los Angeles and Philadelphia.

This week prices rose nationally by four cents, and consumers wondered why the cost is so high.

A study of fact sheets provided by the American Petroleum Institute suggests that the complicated answer includes more production in America, which could add more supply. “More U.S. supply means relief for the global market,” Lem Smith, API’s vice president for Federal Relations, wrote in an op-ed.

“America has an abundance of resources right under our feet, and policymakers should send a clear message that America is open for energy investment,” Smith declared.

API noted that gasoline prices are determined by the supply and demand of crude oil and expenses for refining, distribution, retailing, and taxation. Those fundamental market realities drive prices at the pump, officials stated.

The main components of retail gasoline prices are the cost of crude oil, taxes, refining costs, and distribution and marketing costs, API officials stated.

Of those, the price of crude oil has the most significant impact – accounting for 56 percent of the cost.

“Because of this, changes in the price reflect the global cost of crude oil, which is influenced by current conditions and expectations of consumer demand, supply, inventories, geopolitical events, and other factors, generally have an effect on pump prices,” the organization stated in a fact sheet.

Further, federal, state, and local governments levy various taxes in fees on transportation fuels.

The nationwide average tax on gasoline is 57.09 cents per gallon, including a federal tax of 18.4 cents per gallon and state-level taxes that range from 68.15 cents per gallon in California and 15.13 cents per gallon in Alaska.

API President and CEO Mike Sommers recently discussed the critical importance of American energy leadership “at a time of geopolitical volatility and rising energy costs around the world.”

Sommers urged policymakers to advance U.S. natural gas and oil production to support stability in global energy markets and ensure access to affordable, reliable energy for American consumers and our allies overseas.

“Most everyone knows that the world needs oil and natural gas in a big way and will for decades or more to come; the only question is where that oil and gas is going to come from,” Sommers remarked.

“As much as ever, we need to think hard about that economic truth and our energy future. That means recognizing energy from natural gas and oil as the critical strategic asset it is to America.”

“We can’t treat oil and natural gas as a kind of switch that is turned on or off to suit the moment,” Sommers continued.

“Production and delivery don’t work that way. Yet the overriding policy lately has been to cancel pipelines, block permits and deny leases – all things that discourage investment.

“As more Americans face the consequences of bad policy, the elements of good policy become that much more apparent and desired. We have an opportunity together to re-center the energy discussion with basic realities and good common sense as our starting point.”

Sommers called on the administration and Congress to develop a new five-year offshore leasing program; hold onshore leases on federal lands per the Mineral Leasing Act; approve LNG export applications and allow the approval of exports to non-free-trade-agreement nations, and craft transparent, consistent permitting regulations to enable the development of vital energy infrastructure.

The U.S. has pledged to increase LNG exports to Europe by 65 percent over the next six years.

How quickly could U.S. oil producers scale up production to put downward pressure on domestic gasoline costs?

What could the federal government do to promote that production?

API officials said it begins with access to resources, advancing infrastructure, and enabling – rather than deterring – the industry’s financing.

“Importantly, financial markets have become less hospitable to the natural gas and oil industry partly because of the Biden administration’s positions, policies, and signals,” API officials asserted.

“Those who have capital may be reluctant to invest in long-lived energy assets in such a climate, and a relatively fixed pool of cash flows that could be re-invested by industry have been increasingly spread thin.”

API listed four “concrete actions” the organization believes the Biden-Harris administration could immediately take to support American production.

They include conducting federal lease sales, completing a new five-year program for federal offshore leasing, supporting energy infrastructure, and reopening access to Alaska.

“The administration should reinstate the leases it suspended in Alaska’s Arctic National Wildlife Refuge and the permit development it approved in the National Petroleum Reserve,” API officials wrote.

“These were permitted with stringent environmental standards and could prove a significant source of domestic production over time.”

The post American Petroleum Institute Lays Out Solutions to Rising Gas Prices first appeared on BlackPressUSA.