6 Wm. & Mary Bus. L. Rev. 601 (2015)
Lending Discrimination, the Foreclosure Crisis and the Perpetuation of Racial and Ethnic Disparities in Homeownership in the U.S.

handle is hein.journals/wmaybur6 and id is 622 raw text is: 








              LENDING DISCRIMINATION, THE
    FORECLOSURE CRISIS AND THE PERPETUATION
         OF RACIAL AND ETHNIC DISPARITIES IN
               HOMEOWNERSHIP IN THE U.S.


                      ALEATRA P. WILLIAMS*


                              ABSTRACT

   For decades the agencies charged with minding the fair credit and
lending' shop turned a blind eye to those (lenders) who pilfered minority
homeownership (and consequently minority wealth) by extending mortgage
lending products that were, in many cases, unequal to similarly situated
non-minority counterparts. Since the 1950s, when the federal government
endorsed homeownership policies for minorities, and the 1960s, when anti-
discriminatory lending laws were enacted, access to fair mortgage credit
has been unattainable. Unbridled lending discrimination culminated in
massive foreclosures for a disproportionate number of minority homeown-
ers during the Housing and Foreclosure Crisis. Lenders disparately fore-
closed upon upper class, middle class and lower class minority homeowners.
The effect of these foreclosures widened homeownership gaps between whites
and minorities. Foreclosures were more prevalent for minority homeowners
regardless of economic class. Lending discrimination, and subsequent forfei-
ture of homes, undoubtedly altered the perception of the American Dream,
and resulted in losses of generational wealth for minorities, furthered
racial segregation and prolonged the stagnancy of the real estate market.
Unquestionably then, lending discrimination is not a minority problem, but
is an American problem. Therefore, agencies with jurisdiction to enforce
lending and credit laws must, first, duly enforce these laws and, second,
create civil or criminal mechanisms that effectively and finally eliminate
unfair lending.


   * Associate Professor of Law, Charleston School of Law; University of California,
Berkeley (LL.M.), University of Oklahoma (J.D.), Purdue University (B.A.). My gratitude
goes to my beloved father, Clarence Williams, for his unwavering support, love and above all,
his example. I also wish to thank Adrienne Barry (Charleston 2014) for her dedication
and assistance in researching this Article and instrumental help with early edits, and
Rebecca Wolfe (Charleston 2016) for her amazing diligence and invaluable assistance
with editing this Article.

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