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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

6 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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Federal Raids Target Migrant Kids, Split Families

BLACKPRESSUSA NEWSWIRE — The Trump administration has reportedly removed at least 500 migrant children from their homes across the United States and placed them into government custody, according to multiple sources familiar with the matter.

Published

4 days ago

June 13, 2025

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

The Trump administration has reportedly removed at least 500 migrant children from their homes across the United States and placed them into government custody, according to multiple sources familiar with the matter. The children, many of whom were living with family members or other vetted sponsors, were taken during so-called “welfare checks” carried out by Immigration and Customs Enforcement (ICE) and other federal agencies. According to CNN, the operations are part of a larger campaign launched shortly after President Donald Trump returned to office, with federal authorities setting up a “war room” inside the Department of Health and Human Services (HHS) to review data on children who entered the country alone and were later released to sponsors. Officials have used the room to coordinate efforts between agencies, including ICE and the Office of Refugee Resettlement (ORR), which oversees the custody of unaccompanied migrant children.

Trump officials claim the effort is aimed at protecting children placed in unsafe conditions or with unqualified sponsors, pointing to cases where children were released to individuals with criminal backgrounds or those involved in smuggling. Homeland Security spokesperson Tricia McLaughlin said the welfare checks have led to the arrests of some sponsors and the transfer of children into ORR custody. Federal data shows more than 2,500 children are currently in ORR custody. CNN reported that the average stay has grown significantly, from 67 days in December 2024 to 170 days by April 2025. Former Health and Human Services officials say new vetting rules—including income requirements, government-issued ID, and DNA tests—have made it far more difficult for parents and guardians, particularly those who are undocumented, to reclaim their children.

In some cases, reunifications that had already been scheduled were canceled. A recent lawsuit details how two brothers, ages 7 and 14, remain in government care because their mother cannot meet new documentation requirements under the revised policies. Mark Greenberg, a former senior HHS official, stated that the approach puts children in a difficult situation. “To the extent, the goal is to determine whether children are in danger or in need of help, this isn’t a good way to do that because it creates fear that anything they say could be used against their parent or family member,” he said. Immigration enforcement agents reportedly have visited children’s homes and asked about their journey to the U.S., school attendance, and upcoming immigration court appearances. Legal advocates say these visits, which sometimes include the FBI, are not standard child welfare procedures and can create fear and confusion among minors.

An FBI spokesperson confirmed the agency’s role, saying, “Protecting children is a critical mission for the FBI, and we will continue to work with our federal, state, and local partners to secure their safety and well-being.” Multiple outlets noted that the Trump administration has not provided clear evidence that large numbers of children are missing. Instead, it has referenced a Department of Homeland Security inspector general report from 2023 that noted more than 291,000 unaccompanied minors had not received notices to appear in immigration court. Former officials note that these figures do not necessarily indicate that the children are missing; some lacked updated addresses or were affected by administrative backlogs.

Within HHS, officials were instructed to expedite policy changes. Former ORR Ombudsman Mary Giovagnoli stated that a senior ICE official, Melissa Harper, was temporarily appointed to lead ORR. Her short tenure was followed by Angie Salazar, another former ICE official who now frequently communicates with White House Deputy Chief of Staff Stephen Miller. Trump’s team argues the Biden administration allowed thousands of unaccompanied children to enter the country without sufficient oversight. Jen Smyers, a former ORR deputy director, stated that all sponsors underwent thorough vetting, including Department of Justice background checks and reviews of the sex offender registry. “No amount of vetting is a predictor of the future,” she said. The Miami Herald recently reported that a 17-year-old foster child in Florida was removed from his home in shackles and transferred to ICE custody. The boy and his mother had crossed the border without documentation, but he had been living in a state-supervised foster placement. The case raised concerns about the state’s cooperation with federal enforcement and the message it sends to immigrant families. Concerns about federal custody of vulnerable children are not confined to immigration.

In North Carolina, a 7-month-old baby died after being left in a hot minivan by her foster mother, who now faces charges of negligent child abuse and involuntary manslaughter. In Hawaii, dozens of children have been forced to sleep in government offices and hotels due to a shortage of foster placements. In North Dakota, a foster couple has been charged in the death of a 3-year-old after surveillance footage showed the child being repeatedly assaulted. “These cases show what happens when systems meant to protect children fail them,” said Laura Nally, director of the Amica Center for Immigrant Rights Children’s Program. “There’s a growing concern that these welfare checks are being used to carry out mass detentions of sponsors and unnecessarily return children to government custody.”

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Protests of a Costly and Historic Parade

BLACKPRESSUSA NEWSWIRE — President Trump is planning an elaborate and costly celebration for the 250th anniversary of the U.S. Army that coincides with his birthday.

Published

4 days ago

June 13, 2025

Oakland Post

By April Ryan

It will rain on President Trump‘s parade on Saturday if most weather forecasts correctly predict the chance of storms. President Trump is planning an elaborate and costly celebration for the 250th anniversary of the U.S. Army that coincides with his birthday. When asked if he plans to attend the massive D.C. celebration, New York Democratic Congressman Greg Meeks exclaimed,” Heck no!” He elaborated, saying, “It is clear to me that what Donald J. Trump is trying to do is to emulate Vladimir Putin.” Trump and Putin, the Russian president, are friends. Meeks feels “that’s where he initially got the idea from when he saw the tanks going down the street and how people bow down to Vladimir Putin, how…that authoritarian runs his country where no one questions what he does.”

Meanwhile, around the nation 1600 protests are scheduled to coincide with what is happening in Washington, D.C. Democratic Congressman Al Greene confirms he will attend several “No King Day” protest rallies and marches in his home state of Texas. The congressman questions the president’s comments about using “force” for anyone trying to stop the parade. Reverand William Barber plans to be in Philadelphia on Saturday. “We are having a rally bringing people together,” the civil rights leader confirmed. The leader of Repairers of the Breach added, “Those rallies are gonna be massive and multiracial of every race, color, creed, religion, geographic area, so this is not a moment. We must have a constant movement.”

Weeks ago, DC Mayor Muriel Bowser warned the parade, and all its military might, and pageantry would cost “many millions of dollars” just to repair District streets after the heavy artillery tanks rolled down the historic roads in the nation’s capital. Tall gates and other barricades around the White House are part of the parade’s security measures. The Secret Service has warned of a high-security presence in the area for the parade. You can expect to see military tanks, dozens of other military vehicles, and thousands of service members marching along a route stretching nearly four miles from the Pentagon to the White House.

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Critics Question 2024 Results as Musk Tactics Surface

BLACKPRESSUSA NEWSWIRE — Now, a Wisconsin nonprofit has filed a legal complaint accusing Musk, his America PAC, and a Musk-affiliated group called United States of America Inc. of violating state election laws by bribing voters.

Published

5 days ago

June 12, 2025

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

Donald Trump’s return to the White House in 2024 has reignited questions about election integrity, particularly after his remarks thanking Elon Musk for what he called a “landslide” win in Pennsylvania. “He knows those computers better than anybody… all those vote-counting computers,” Trump said. “So, thank you to Elon.” The comment set off alarm, including Texas Rep. Jasmine Crockett. “So, Trump is rambling on about he and Elon rigging the election?! Am I missing something or is he confessing to yet another damn crime?!” she posted on social media.

Now, a Wisconsin nonprofit has filed a legal complaint accusing Musk, his America PAC, and a Musk-affiliated group called United States of America Inc. of violating state election laws by bribing voters. The Wisconsin Democracy Campaign and two voters allege Musk handed out $1 million checks and that his PAC paid $100 to registered voters who signed petitions and gave their contact information. Wisconsin law prohibits offering anything of value over $1 to encourage someone to vote. The complaint also cites violations of the state’s lottery ban. The plaintiffs are asking a court to declare the actions illegal, prevent future violations, and award damages if applicable.

The lawsuit follows a failed attempt by Wisconsin Attorney General Josh Kaul to block Musk’s actions earlier this year. Kaul argued that Musk’s conduct amounted to illegal inducement, but courts declined to intervene before the April state Supreme Court election. Jeff Mandell, president and general counsel for Law Forward, which represents the plaintiffs, said this new case is being filed under more typical legal timelines. “We’re trying to create … accountability in a more regular timeline, in a way that gives the courts the opportunity to look at this more carefully,” Mandell said.

Musk, who served briefly as a Trump adviser and led a short-lived federal agency focused on cost-cutting, has denied wrongdoing. He initially promoted the giveaways as rewards for early voters but later revised eligibility criteria following legal scrutiny. The controversy has added fuel to growing concerns over anomalies in places like Rockland County, New York, where Vice President Kamala Harris reportedly received virtually no votes despite Democratic victories in other races. “We know exactly what happened and how it unfolded, and we’re asking the court to say this is not acceptable,” Mandel has said.