About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

8 DePaul J. Soc. Just. 25 (2014-2015)
Race, Risk and Real Estate: The Federal Housing Administration and Black Homeownership in the Post World War II Home Ownership State

handle is hein.journals/depjsj8 and id is 31 raw text is: RACE, RISK AND REAL ESTATE: THE FEDERAL HOUSING ADMINISTRATION AND BLACK HOMEOWNERSHIP IN THE POST WORLD WAR II HOME OWNERSHIP STATE AMANDA TILLOTSON The existence of a property-owning majority in the United States was the result of federal institutional intervention in the period after World War II. This intervention both reduced the risks assumed by mortgage lenders and changed the terms on which mortgages were offered. By underwriting mortgages is- sued by lending institutions, the Federal Housing Administra- tion (FHA) made it possible for a larger share of working and middle class individuals to own homes, but arguably exacer- bated racial disparities: the property-owning majority that was created in the period after World War 1I was white. There is general agreement that FHA underwriting criteria played an im- portant part in this story. Existing explanations for these crite- ria focus on the FHA's incorporation of racialized criteria developed by its predecessor, the Home Owners Loan Corpora- tion, and on the role of political bargains made to secure the co- operation of local officials and real estate interests. In this paper, I suggest that an additional factor needs to be considered. I connect these requirements to dominant under- standings about the financial risks and variations in property value associated with race. I argue that these understandings were embedded in the national financial environment, and were legitimized by the legal order. I suggest that FHA underwriting requirements were shaped by the need to secure participation by financial institutions and by the need to minimize risk to

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most