More evidence of discrimination in mortgages by race and ethnicity

The Center for Investigate Reporting went through 31 million records created by the Home Mortgage Disclosure Act and found disparities:

The analysis – independently reviewed and confirmed by The Associated Press – showed black applicants were turned away at significantly higher rates than whites in 48 cities, Latinos in 25, Asians in nine and Native Americans in three. In Washington, D.C., the nation’s capital, Reveal found all four groups were significantly more likely to be denied a home loan than whites.

Reveal’s analysis included all records publicly available under the Home Mortgage Disclosure Act, covering nearly every time an American tried to buy a home with a conventional mortgage in 2015 and 2016. It controlled for nine economic and social factors, including an applicant’s income, the amount of the loan, the ratio of the size of the loan to the applicant’s income and the type of lender, as well as the racial makeup and median income of the neighborhood where the person wanted to buy property.

Credit score was not included because that information is not publicly available. That’s because lenders have deflected attempts to force them to report that data to the government, arguing it would not be useful in identifying discrimination. 

This is an ongoing pattern. While I was in graduate school, I had a little experience working with the millions of HMDA records since my advisor, Rich Williams, had published on the topic. For example, see his 2005 article in Social Problems.

And lest we think that this is just about applicants of different races or ethnicities with equal standing receiving different treatment (generally the point of audit studies), it was even worse before the housing bubble burst:

In 2006, at the height of the boom, black and Hispanic families making more than $200,000 a year were more likely on average to be given a subprime loan than a white family making less than $30,000 a year…

Relative to comparable white applicants, and controlling for geographic factors, blacks were 2.8 times more likely to be denied for a loan, and Latinos were two times more likely. When they were approved, blacks and Latinos were 2.4 times more likely to receive a subprime loan than white applicants. The higher up the income ladder you compare white applicants and minorities, the wider this subprime disparity grows.

Or another study:

According to the study’s authors, the economists Patrick Bayer, Fernando Ferreira, and Stephen L. Ross, race and ethnicity were among two of the key factors that determined whether or not a borrower would end up with a high-cost loan, when all other variables were held equal. According to them, even after controlling for general risk considerations, such as credit score, loan-to-value ratio, subordinate liens, and debt-to-income ratios, Hispanic Americans are 78 percent more likely to be given a high-cost mortgage, and black Americans are 105 percent more likely.

Or see the $175 million fine leveled at Wells Fargo for steering minorities to worse loans.

This reminds of the conclusion of American Apartheid where the sociologists Doug Massey and Nancy Denton argue that Americans lack the will to enforce existing laws about housing discrimination. Even with a variety of laws and regulations intended to eliminate discrimination in housing, there is not a completely level playing level field.

Defining a social problem: “transit gaps” or “transit deserts”

One skeptic of the concept of transit gaps explains his concerns:

The Chicago-based nonprofit Center for Neighborhood Technology recently unveiled its AllTransit Gap Finder—an online mapping tool designed to point out areas with “inadequate” transit service. It’s a good effort, and it’s certainly good that we have more tools for understanding transit demand…

A transit gap is some kind of difference between transit service and transit need or demand. But need and demand are different things. A need means that there are people whose lives would be better if they had transit. A demand is an indication that transit service, if it were provided, would achieve high ridership.

These terms correspond to the two opposing goals of transit service. If the goal of service is ridership, then it should provide excellent service where there is demand. On the other hand, many people who need transit wouldn’t be served if transit agencies ran only high-ridership service. So transit agencies run a certain amount of service for the non-ridership goal of coverage, which responds to need. In other words, they spread service out so that everyone has a little bit, even though low ridership is the predictable outcome. This critical distinction is explained more fully here. It’s a difficult budgetary choice about dividing resources between competing goals, one that local governments need to think about…

Although AllTransit’s claims are framed in misleading terms, the idea of being able to accurately see exactly how well any given neighborhood is served by transit is a laudable one. Over the years I’ve written about other efforts to get this right. An especially important idea, buried deep in the overly complex methodology, is that a transit quality index should be about where you can get to in a given amount of time, rather than what transit is available. In my own work I routinely use this measure to describe the human benefits of transit service changes, because getting to destinations, and having a choice of more destinations, is what makes for a great life.

There seems to be two issues here: separating community values from possibilities as well as how to best measure transportation options. No city has an endless pot of money with which to fund mass transit. Yet, I imagine proponents of transit deserts would note that the general American orientation is toward driving and roads while mass transit has to regularly scrap for money. The measurement issue is hopefully an ongoing conversation as researchers with different decisions and aims work to find measures that both reflect the social realities as well as provide helpful information for residents and local governments.

But, I also suspect that this is critique is missing a key concern of some of those working in the food/transit/grocery stores/parks/medical care desert literature: the key is which groups are most affected by these deserts or have less access to these necessities. Many of the deserts – however defined and regardless of the goals of the community – seem to affect lower class and non-white residents. One could argue that a community might not have the resources or vision to extend mass transit to a particular area but this does not necessarily address the issue of residential segregation that is alive and well in the United States.

How Census questions muddle race and ethnicity for Latinos

Sociologist Richard Alba explains how the Census does not accurately capture racial and ethnic change:

Sticking with the two-question format means that the great majority of young people with mixed Hispanic and white origins will be categorized only as Hispanic — and therefore as “nonwhite,” in census terminology. This classification will often contradict how they perceive and experience their identity, and how they’re treated by the world around them.

And it is sociological nonsense. A growing body of data reveals that individuals from mixed families look more like whites than they do like minorities — except for those who are partly black. The exception demonstrates, it should be emphasized, the persistent and severe racism that confronts Americans with visible African heritage.


And these measurements then affect projections for the future as well as political reactions:

And classifying those from mixed Hispanic and white families as “nonwhites” results in Census Bureau population projections of a majority-minority society by the mid-2040s. But such projections are grossly misleading because of the binary thinking that undergirds them and the misclassification of individuals who are partly white and partly minority…

In the 2016 presidential election, according to research Michael Tesler has reported here at The Monkey Cage, President Trump appears to have gained many votes from whites because of their anxiety about a rapidly changing society that would soon leave them as part of a minority.

At the least, we should keep in mind that racial and ethnic definitions can and do change over time due to a variety of factors: understandings within particular groups (self-understanding), understandings from other groups in society (pressures from the outside, particularly dominant groups), and how race and ethnicity are measured.

This could also raise questions about forecasts for the future of society – especially decades out. On one hand, we want to be able to prepare for changes and trends. On the other hand, demographic trends and shifts in behaviors and attitudes are not set in stone. Both researchers and leaders need to be flexible – or in terms of one of the current buzzwords, resilient  – enough to adapt.

Bringing art and renovation to outdoor basketball courts

Project Backboard seeks to both renovate and bring public art to urban basketball courts:

The transformation of mural-style courts across America has its roots in Memphis, where Daniel Peterson noticed the majority of courts had fallen into disrepair. It was then, in 2014, that Peterson founded Project Backboard, a nonprofit that has renovated public basketball courts in cities from Los Angeles to St. Louis. More renovations in Memphis, Maryland, and New Rochelle, New York, are underway, and Peterson has consulted on projects in Oregon, Virginia, and Belgium, and talked to several other urban parks departments.

In Memphis, where one in four residents lives beneath the poverty line, Peterson found in 2014 that around two-thirds of basketball courts across the city didn’t even have basic lines: foul, three-point, or out-of-bounds. Backboards were tagged with Coke logos or vinyl stickers. The courts just didn’t work. Today, mostly teen boys and young men play on more than 20 renovated courts, whose 30 public works of art include whimsical silhouettes on Lewis-Davis Park, bright profiles and symbols in Chickasaw Park, and geographic shapes in Pierotti Park.

All of this is in the context of making basketball courts more inviting spaces. This is not necessarily easy to do when some residents dislike outdoor courts:

Fear-driven efforts to shut down outdoor courts seem to disproportionately affect people of color. A so-called “kill-the-hoops movement” has spread across small towns and cities, including Chicago, Cleveland, and Los Angeles, as a maneuver against guns, noise, fights, and drugs. In 2016, a neighborhood group in Brooklyn proposed replacing basketball courts with tennis courts to curb crime, and was accused of racist motivations.

“Obviously, I don’t subscribe to the belief that inviting more people into an area is going to have a negative impact on your community,” Peterson said. “We think the more people you bring into the community, into public spaces, the more positive impact it’ll have in the community.”

See these earlier posts from 2011: Thinking about the lack of outdoor basketball courts – Part One and Thinking about the lack of basketball courts – Part Two. Compared to some other park options, basketball courts can be relatively low maintenance (concrete, poles and backgrounds, replace the nets fairly regularly) and they require participants to bring little more than a basketball (and you may only need one for a large group). Yet, basketball courts tend to attract young males and this may not be welcomed by nearby residents.

The idea of infusing public art with outdoor courts is a clever one but I am curious about the long-term effects. Do the courts help attract a broader range of nearby residents? Is the artwork maintained? Does the artwork change behaviors on and near the court or perceptions from insiders and outsiders about the neighborhood? I could see some interesting opportunities arise with artwork and competitions; NBA and college teams have similar gotten into some crazier court designs in recent years to create a home court advantage as well as attract attention.

Five decades later, white evangelicals commonly invoking MLK

In recent years, I think I noticed something within white evangelical circles: a regular use of the words of Martin Luther King Jr. I do not know if this is a certifiable trend or not; it simply popped into my mind after a few recent experiences.

On one hand, this could be viewed as a positive sign. White evangelicals are turning around to addressing issues of race and justice. They recognize the importance of the work of MLK. They are willing to learn from others outside of their theological tradition.

On the other hand, I wonder if this is all five decades too late. Are the evangelicals of today the same “white moderates” King criticizes in “Letter From a Birmingham Jail“? Is King now acceptable for use because his words and ideas are a normal part of American society? Are those invoking King today willing to go to the same lengths as King and other Christians to fight injustice?

May this Martin Luther King Day help lead to true justice.


How postwar DuPage County used zoning to limit poorer and non-white residents

I was recently reading the 1976 political science book Poliscide and part of Chapter 8 on the postwar zoning practices of DuPage County caught my attention:

Although no county can place guards at the county line to inspect the socioeconomic and racial characteristics of newcomers, such powers as zoning and control over subdivision and building codes make the county a highly effective arbiter of the types of structures to be built and, hence, the final arbiter of the types of people who will live in its jurisdiction.

For example, DuPage County enacts a subdivision ordinance requiring a developer to retain a large portion of his prospective subdivision for public facilities such as parks and schools; the county combines this with a zoning ordinance requiring single-family dwellings and a large minimum lot size. This effectively prohibits a developer from profitably building anything but high-cost housing not accessible to lower-income persons.

Stringent county building code standards, requiring expensive building materials and high-quality plumbing, wiring, and heating systems, also serve to increase housing costs. The county’s industrial zoning policy restricting heavy industry serves to limit job opportunity for lower-income persons and to prevent a decline in residential property values surrounding an industrial development – which might create housing opportunities for lower-income groups. Moreover, the county’s relations with various financial institutions make it difficult for a developer to secure financing for a project not approved by the county. Indeed, because of the obstacles the county is capable of placing in the path of a developer, the county’s objection may be sufficient to convince a financial institution that investment in a project would be unwise.

The county’s relations with other units of government give it yet another means of influencing the course of residential and industrial development. It is not, for example, an uncommon practice in Illinois for the county forest preserve district to condemn, at the count government’s behest, land on which an unwelcome development is planned…. And courts have made it a point not to intervene. If the acquisition was for a “public purpose,” there is no inclination to examine the underlying motives. (179-180)

And, as the political scientists point out, these were all legal procedures. Local governments, whether at the municipality, township, or county level, often have the power to dictate what can be built on the land over which they have jurisdiction.

At the same time, there have been court cases seeking to reverse these zoning powers. In 1971, DuPage County residents and a local fair-housing group brought suit against the county for exclusionary zoning practices. The Mount Laurel cases in New Jersey led to famous decisions suggesting municipalities cannot completely restrict cheaper housing (even if implementation has been messy).

More broadly, Sonia Hirt argues zoning in the United States serves one primary purpose: single-family homes. When wealthier suburbanites or urban dwellers get the opportunity to live in the homes they want or ones that have plenty of desirable traits, they tend to resist efforts to include cheaper housing nearby. (For a more recent urban case, see Portland.)

To some degree, the plan worked for a while in DuPage County. The authors of Poliscide say the county was the 3rd wealthiest in the nation, businesses were growing, and much of the development was relatively high-end. Yet, things changed over time. In the 2010 Census, DuPage County was the 62nd wealthiest county in the United States. (It would be interesting to analyze what role zoning played in vaulting all those other counties above DuPage County.) In the same census, the white along population was just over 70%. Some of this might be due to how the authors of Poliscide suggest municipalities fought back against the county: they moved to incorporate themselves as well as annex land so that they took over jurisdiction of land and DuPage County had less control over new development.

How a foreclosure can slow momentum toward the American Dream

The effects of foreclosures after the burst housing bubble may be long-lasting for many individuals and households:

A foreclosure is a one-time event, but for many families it’s something that never ends, wrecking years of their lives and the hopes they once had. The story of the Santillans’ foreclosure illustrates the way that the recession changed the American economy, and for millions of Americans, forever changed their lives. Some nine million families lost their homes to foreclosure or short sale between 2006 and 2014. But many lost more than that: They lost their momentum, too. Families like the Santillans had been moving up a ladder towards the American Dream, and fell off into a deep pit. They’re still at the bottom of the ladder a decade later, trying to get back to where they had been…

A foreclosure set them back them even further. Academic studies point to the many negatives associated with foreclosure: Families in foreclosure have more frequent emergency-room visits and worse mental-health outcomes. Their children do worse in school and have higher truancy rates. They are more likely than other families to rely on the social safety net. Losing a home can also mean becoming disconnected from the community where you lived, and the connections that might have helped you find a new job or get a loan, Roberto Quercia, the director of the Center for Community Capital at the University of North Carolina at Chapel Hill, told me. It’s for these reasons that many of those families are still struggling today. White families had largely recovered financially from the Great Recession by 2013, according to the Federal Reserve, while even today, the median income for black and Latino households has still not reached 2007 levels…

But they learned what many American families did during the financial crisis—that while America prides itself on being a place where people can climb up the economic ladder, it’s also a place where people can fall fast, and far. “We just can’t forget, that in any given moment, things can change,” Karina told me. This has implications beyond the fates of these individual families. The American economy thrives when people are in the jobs they want, being as productive as they can, and when they feel financially stable enough to make purchases that will raise their standard of living. The aftermath of the foreclosure crisis and recession means that many families have not felt secure like that in a long time.

Three points stick out to me:

  1. Social mobility in public conversation usually means moving up the class ladder but people also can fall down that ladder, particularly with major changes like loss of a job, foreclosure, or a major medical issue.
  2. It will be interesting to see how long it will take to truly recover from the burst housing bubble. Ten years? A full generation or two?
  3. There has long been a gap in homeownership and wealth between whites and both Latinos and blacks. The foreclosure issues only seem to have exacerbated these issues as whites as a whole have recovered while blacks and Latinos have not. How will these long-lasting ill effects of foreclosures affect inequalities between racial and ethnic groups?