To this day, Black and Latino households are far less likely to own their home compared to their white counterparts.
The practice effectively cut off entire communities from the primary pathway for wealth generation in the U.S.: homeownership. The neighborhoods were almost always areas where racial minorities lived, and even included other historically discriminated-against communities such as Jewish neighborhoods. government used to draw on maps in red marker those neighborhoods that were deemed undesirable to make home loans. Redlining is a term used to describe when banks deliberately avoid making loans to non-white communities. “We witnessed that discrimination in real time.” If it wasn’t for Berean and your dad, I wouldn’t have been able to buy my home,” Hughes said. “I’ve had people come up to me and say, ‘Vince, your dad gave me a mortgage for my first home when I was turned down everywhere else. Hughes’ father worked for one of the oldest Black-owned savings and loans, a company name Berean that would finance mortgages for Black families when they were turned away by other banks and lenders. Hughes said portions of his life have been framed by the discriminatory lending practices that prevent Black and brown communities from building wealth. Vincent Hughes, a Philadelphia Democrat, grew up a few blocks from the West Philadelphia park where a news conference on the settlement was held Wednesday. “Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth, and devalued properties in their neighborhoods,” said Kristen Clarke, an assistant Attorney General of the Justice Department’s Civil Rights Division, in a prepared statement. Trident Mortgage Co., a division of Berkshire Hathaway’s HomeServices of America, deliberately avoided writing mortgages in minority-majority neighborhoods in West Philadelphia like Malcolm X Park Camden, New Jersey and in Wilmington, Delaware, the Justice Department and the Consumer Financial Protection Bureau said in their settlement with Trident.Īs part of the agreement with the government, Trident will have to set aside $20 million to make loans in underserved neighborhoods.
NEW YORK (AP) - A Pennsylvania mortgage company owned by billionaire businessman Warren Buffett’s company discriminated against potential Black and Latino homebuyers in Philadelphia, New Jersey and Delaware, the Department of Justice said Wednesday, in what is being called the second-largest redlining settlement in history.
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