The FHA published a handbook that gave numerical ratings to neighborhoods based on religion, race, and national origin of the residents. Simple arithmetic for a simple public policy. The local FHA offices used these ratings to compute the "desiribility" of the proposed loan. This is one of the fundamental examples of institutional racism. Remember, the FHA issued mortgage insurance and the loans were written by the local banks and finance companies. The scores were based on aggregate numbers in a particular neighborhood. Negroes, Jews, and Mexicans got the lowest scores.
When this policy was phased out after the civil rights laws in the 60's, the effect was continued by the underwriters of property casualty insurance. You couldn't insure a house in certain neighborhoods. No insurance, no mortgage. Thus the beginning of private mortgages (known as contracts-for-deed in these parts). Private mortgages are unregulated and have been used historically in poor neighborhoods to take advantage of financially unsophisticed home buyers. The current incarnation is called "predatory lending" and the fleece is done very much within the letter of the law. Restrictive covenants were also attached to property deeds as some of you have noted. Fifty years ago, I couldn't have bought my former house in the Lynhurst neighborhood. Everything was legal. We don't discriminate, we just follow the law. By the way, I do have references for the examples that I gave, but don't have them handy. David Wilson Loring Park REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
