SOC 134 Lecture Notes - Lecture 13: Predatory Lending, Blockbusting, Redlining
Document Summary
Numerous historical incidents of white violence against blacks in major cities (chicago, detroit, philadelphia) Encourage building of new affordable homes with a government back mortgage system. Redlining: the practice of denying loans for those in primarily non-white neighborhoods (outlined in red on a map) Blockbusting: real estate speculators would intentionally sell homes to non-whites in white neighborhoods. Designed to accelerate white flight with fear of dropping property values. Get white homeowners to sell their homes below the property/market value. Restrictive covenants: contractual agreements among homeowners not to sell to non-whites. Steering: real estate agents show white neighborhoods only to whites; non white neighborhoods only to non-whites. Predatory lending: higher fees and interest rates for non- white homeowners. Subprime loans: loans to those with higher risk of default. Blacks and latinos about twice as likely to receive such loans. Prohibited discrimination in the sale or rental of housing. What about race-neutral (colorblind) practices that have discriminatory "effects?"