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The St Louis Contrarian

Providing Independent and Intelligent Insight on St. Louis Public Policy Issues

Archive for the category “fair housing”

Maplewood Nuisance Ordinance

Maplewood an inner suburb of St. Louis has had a nuisance ordinance which has been challenged by the ACLU. In a settlement the city agreed to change the ordinance.

The sticking point was that more than a certain number of calls to the police could get a tenant evicted. In the case of a woman suffering from domestic abuse, calling the police is usually a necessity.

I believe nuisance ordinances serve an important service. They need to be reasonable in how they are enforced.

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Prohibit and enforce bans on income discrimination | Business News | stlamerican.com

“Your money is no good here.” It may sound like a line spoken by the barkeeper in an old-timey Western movie.
— Read on www.stlamerican.com/content/tncms/live/

A great article by leadership of Empower Missouri about housing discrimination based upon source of income. If people can pay rent, have decent credit, and are good tenants, that is all that should matter. Written by Paul Dribin

The Not-So Hidden Truths About the Segregation of America’s Housing – Shelterforce

There are sometimes audible gasps in a room as Richard Rothstein talks about his book, The Color of Law, and the United States government’s work to create, encourage, and enforce racial segregation in housing in the 20th century.

Excellent interview with richard rothstein about housing segregation
— Read on shelterforce.org/2018/05/22/the-not-so-hidden-truths-about-the-segregation-of-americas-housing/

Ben Carson and Fair Housing Laws

nyti.ms/2IfjBuW

An editorial from New York Times

A Very Good Article About Housing Policy From Brookings

www.brookings.edu/blog/the-avenue/2018/05/02/nine-rules-for-better-housing-policy/

I particularly like that they talk about income subsidy as well.

Segregation in St. Louis-Dismantling the Divide

A report entitled Segregation in St. Louis-Dismantling the Divide is an outstanding document that carefully, accurately, and fairly analyzes the history of housing segregation in St. Louis. The report was prepared by a group of organizations and scholars led by the Metropolitan St. Louis Equal Housing and Economic Opportunity Council. It should be required reading for everyone and hopefully will be a blueprint for action. The website for the report is forthesakeofall.org. Written by Paul Dribin

Fair Housing Law

nyti.ms/2v3uF8n

Former Vice President Walter Mondale presents an excellent discussion on the federal Fair Housing Law of 1968 which was intended to outlaw racial discrimination and segregation in housing. Mr. Mondale presents some very accurate points about the serious flaws in implementing the law by the federal bureaucracy including HUD where I worked. The political consequences are still strong for politicians who support open housing. We do know that living in safe neighborhoods with good schools is the number one things a poor family can do to improve their lives. Written by Paul Dribin

A bad racist housing program

www.theatlantic.com/business/archive/2018/04/rent-to-own-redlining/557588/

This article itemizes a new form of land contract housing sales. It preys on African American people of limited means and marginal credit. People pay monthly but title to the property does not transfer until after a long number of years. The potential buyers build no equity and if they miss a payment they are out with no equity to show for it. These programs were used for blockbusting in Chicago when I grew up. Written by Paul Drib in

The Real Story Behind Racial Disparities in Mortgage Lending

There are numerous articles and discussions about the fact that African American borrowers are rejected at a higher rate that white borrowers. This disparity is present even when adjusting for income. On the face of it, this appears to be overt discrimination.

An important piece of the puzzle is missing from the discussion. That piece is the credit record and history of the borrower. This information is never made available in these studies and provides a more qualitative aspect of mortgage underwriting. Two other equally qualified borrowers will have different underwriting results if one has a negative credit record. Research I have conducted has shown that bad credit is the primary cause of a loan going bad.

Another factor shows this poor credit denies loans. Mortgage loan officers are extremely aggressive and make their fees off of closing loans. They would make a loan to anyone who would qualify. Race plays not factor in these decisions. Written by Paul Dribin

Real Facts Behind Alleged Racial Discrimination in Mortgage Underwriting

Once again articles have appeared alleging racial discrimination in mortgage underwriting. The allegations are very simplistic, they are based on the fact that fewer African Americans than white Americans get approved for mortgage loans even adjusting for income.

There are several key factors that go into underwriting a loan that belie this argument. A huge factor in loan underwriting is the creditworthiness of the borrower. I have conducted research which has shown that a poor credit rating was the biggest predictor of loan default. It makes sense. People could have a lot of money, but if they don’t pay bills, they are a risk. The analyses conducted by fair housing groups don’t take credit history into account. They are not being accurate to state they are comparing like borrowers.

A second reason which supports the argument that we have a credit worthiness problem is the nature of the mortgage business. Mortgage loan officers are hugely competitive and derive their income from closing loans. I can speak from experience they fight aggressively for each deal. They are not going to pass up a commission because they may be prejudiced against people of color.

Underwriting standards need to be constantly reviewed to insure they are fair to all and capture as best they can the experience of racial minorities. We can get better results. But let’s not go in for simplistic analysis. Written by Paul Dribin

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