Posts Tagged ‘foreclosure’

Report: Threat of Foreclosure on Calif. Homes Disproportionately Affects Minorities

Saturday, March 16th, 2013

(National Journal) An overwhelming majority of homes in California’s major cities that are in danger of foreclosure are also in majority-minority ZIP codes, according to a reportreleased this week. 

The report focuses particularly on homes with mortgages serviced by Wells Fargo. Of the 21 major California cities examined, more than eight in 10 homes in danger of foreclosure are in areas where at least half of its residents are minorities—evidence, the report’s authors say, that further supports the idea that the housing crisis has been particularly harmful to African-American and Hispanic homeowners.

The findings come on the heels of the housing-market decline and the ensuing Great Recession that ensnared many homeowners who have been fighting to maintain their financial standing and retain their homes. While the report focuses on the California economy, other Americans are in similar circumstances. Across the nation, homeowners—many of them minorities—struggle to stay afloat as they watch their savings plummet and their dreams of maintaining a middle-class American lifestyle disappear. In its place are notices of default and the impending threat of bankruptcy.

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African American churches protest foreclosures by black-run bank

Monday, November 5th, 2012

(Los Angeles Times) A coalition of African American ministers is protesting foreclosures on their churches — byBroadway Federal Bank, a savings bank established in the 1940s to serve Los Angeles' then-segregated black community.

About one-quarter of the money Broadway Federal has lent out has been for mortgages on church properties. In the tough economy, it's become a problematic business for the bank, which regulators have categorized as troubled since 2010.

The bank's annual report for 2011 with the Securities and Exchange Commission said regulators have barred it from making additional church loans. Broadway Federal, which continues to be run by African Americans, said its problems "raise substantial doubt about the company's ability to continue as a going concern."

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Bank of America accused of neglecting foreclosed homes in minority neighborhoods

Friday, October 26th, 2012

 

(IndyStar) Fair housing advocates accuse one of the nation’s largest banks of discriminating against black and Latino neighborhoods in how it maintains and markets foreclosed homes.

A coalition of fair housing agencies, including the Fair Housing Center of Central Indiana, made the allegations Tuesday in a complaint with the U.S. Department of Housing and Urban Development.

The coalition said it evaluated homes owned, serviced or held in trust by Bank of America in three Midwestern cities, including Indianapolis. The group said it found significant disparities in how houses in predominately non-white neighborhoods were maintained and marketed compared with houses in mostly white neighborhoods.

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Wells Fargo Racial Discrimination Investigation Launched By HUD

Monday, April 16th, 2012

(Huffington Post) Wells Fargo & Co., the nation's largest mortgage lender, is facing the second of at least two federal probes into how it treats minority borrowers and the properties it owns in minority neighborhoods. Department of Housing and Urban Development officials confirmed this week that the agency will investigate allegations lodged against the bank Tuesday by the National Fair Housing Alliance. The alliance complaint accused Wells Fargo of working to maintain and market bank-owned foreclosed properties in predominantly white communities far more aggressively than it does in mostly black and Latino neighborhoods.

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Foreclosing on the African American Community

Friday, January 20th, 2012

(Planetizen) Foreclosures continue to decimate communities around the nation, with black neighborhoods being the hardest hit. However, it is investors, not homeowners, who account for the adverse impact on the nation's black communities, write John Gilderbloom and Gregory Squires.

Foreclosures continue to decimate communities around the nation, with black neighborhoods being the hardest hit. Some pundits and politicians point to federal policies that encouraged homeownership in low- and moderate-income communities, coupled with reckless behavior on the part of greedy homeowners, as the crux of the problem. As Fox News reporter Neil Cavuto observed "loaning to minorities and risky borrowers is a disaster." But our recent research demonstrates that it is investors, not homeowners, who account for the adverse impact on our nation's black communities.

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Foreclosures drain African-American wealth

Friday, October 21st, 2011

(St. Louis American) Recently the Pew Research Center released an alarming report highlighting the fact that white Americans now have 20 times more wealth than African Americans and 18 times more wealth than Hispanic Americans. While this came as a shock to some, it is par for the course for others.

Historically, whites have always earned and accumulated more wealth than minorities in American society. Despite this, the white-black wealth gap is the widest it has been since the census began tracking the disparity in 1984, when the ratio was roughly 12 to 1.

The collapse of the housing market bubble coupled with the recession caused median wealth to fall by 53 percent for African-American households, 66 percent for Hispanics and 16 percent for whites. One of the main reasons for such a major decline in minority wealth is due to the fact that African Americans and Hispanic Americans tend to invest heavily in their homes without investing in other asset building products such as stocks, bonds and savings accounts.

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Historic African-American church faces foreclosure in Georgia

Friday, December 31st, 2010

(All Headline News) The oldest African American church in DeKalb County no longer has a place to worship.

Flat Rock Community Church was established 150 years ago. Now, one of the members said it is in financial limbo.

In November, the church separated from the United Methodist denomination in a disagreement over property, reports stated. In December, membership thinned out, and the church could no longer afford the $6,500 mortgage, resulting in the building going into foreclosure.

According to senior pastor Binita Miles, members are discouraged they have to deal with political and financial issues within the church, and not religious concerns.

For the past month, the church has been meeting at the Flat Rock archive building, and starting in January they will move to Flat Rock Elementary School.

Foreclosures in CA hit #latino #hispanic homes hardest

Wednesday, August 18th, 2010

(San Francisco Chronicle) A review of the damage wreaked on California communities by the housing bust shows that Latino households suffered nearly 50 percent of the foreclosures and that loan defaults are concentrated in the state’s Central Valley.

That area, which includes the Sacramento and San Joaquin valleys, features six of the top 10 California metro areas for foreclosure concentrations, according to the Center for Responsible Lending, which released a comprehensive report Tuesday.

No California communities have experienced a higher percentage of defaults than Modesto, Merced and Stockton – each of which had a foreclosure percentage of around 16 percent between late 2006 and 2009, the study found.

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Foreclosure crisis hits #minorities harder. #africanamerican #hispanic #housing

Saturday, June 19th, 2010

(CNN Money) The mortgage meltdown is hitting the African-American and Latino communities harder than whites, a new study has found.

Of borrowers who took out mortgages between 2005 and 2008, some 8% of both African-American and Latino borrowers have lost their homes to foreclosure, compared to 4.5% of non-Hispanic whites, according to a study by the Center for Responsible Lending, released Friday.

The racial and ethnic disparities continued even after controlling for income differences. The center’s research shows that African-American and Latino borrowers were about 30% more likely to get higher-rate subprime loans than white borrowers with similiar risk characteristics.

Of the total pool of homeowners, 17% of Latinos have lost their homes to foreclosure or are at imminent risk of losing their homes, while 11% of African-Americans are in that position. By comparison, 7% of non-Hispanic whites have lost their homes or are about to.

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