GEOG 3205 Lecture Notes - Lecture 9: Community Reinvestment Act, Equal Credit Opportunity Act, Predatory Lending
Document Summary
Growth of the ownership society: between 1950 & 1960, the number of owner-occupied homes doubled, today, more than 67% of americans own their own homes, driven by: Supportive government policy: arguments that homeownership is a stabilizing force & generates personal wealth. Segregation in housing: redlining: spatially discriminating lending practices excluded or discouraged would-be home buyers in low-income, minority households from obtaining homes in certain geographic areas, 1968 fair housing act, 1974 equal credit opportunity act & 1977 community. Segregation in housing: subprime mortgage crisis: financial services modernization act of 1999 & fannie mae eased credit restrictions to encourage extending home mortgages to those who could not qualify for conventional loans. Increased home ownership rates along with housing prices: contributed to segregation through predatory lending, housing market collapse, subprime mortgage crises & resulting foreclosures hit the hardest in low-income communities of color. Large congregation of low-income led to extreme conditions of crime and uncleanliness.
