Hartman squires from foreclosure to fair lending; advocacy, organizing, occupy, and the pursuit of equitable credit (2013)

Praise for From Foreclosure to Fair Lending: “Realizing the objectives of the 1968 Fair Housing Act has long been considered one of the most critical pieces of unfinished business of the civil rights movement From Foreclosure to Fair Lending shows us what needs to be done to achieve those goals Hartman and Squires have assembled the nation’s leading fair housing advocates and scholars Given the continuing fallout of the foreclosure debacle, the timing could not be better for this book.” —Ben Jealous, President, NAACP “Occupy Wall Street’s biggest success was its impact on the national conversation But now, many voices ask, what’s next? This book offers some important answers In From Foreclosure to Fair Lending, leading experts and activists in housing and lending practices reflect on how the Occupy spirit revives the historic civil rights and grassroots organizing movements to take on new challenges in a new century.” —Clarence Page, Pulitzer Prize-winning syndicated columnist for the Chicago Tribune “Housing policies and practices are at the center of the ongoing economic crisis in the United States, and the consequences in lost homes and lost savings have been devastating for many Americans This collection gives us the essential background to understand these developments and to support the struggle for social justice in housing that is emerging.” —Frances Fox Piven, City University of New York Graduate School “Our nation is at a crossroads precipitated by the lending and foreclosure crisis that has the potential of erasing the gains of forty-five years of fair housing/fair lending enforcement Traditional responses to the current challenges may be reaching the limits of their effectiveness From Foreclosure to Fair Lending demonstrates another way.” —Michael P Seng, Co-Executive Director, The John Marshall Law School Fair Housing Legal Support Center and Clinic From Foreclosure TO Fair Lending Copyright 2013 by Chester Hartman and Gregory D Squires All rights reserved See chapter and image credits for usage authorization and copyright of individual contributions Except for brief portions quoted for purposes of review, no part of this book may be reprinted, reproduced or utilized in any medium now known or hereafter invented without permission in writing from the publisher Published in the United States by New Village Press @ Centre for Social Innovation 601 West 26th Street, Suite 325-11 New York, NY 10001 bookorders@newvillagepress.net www.newvillagepress.net New Village Press is a public-benefit, not-for-profit publishing venture of Architects/Designers/Planners for Social Responsibility In support of the Greenpress Initiative, New Village Press is committed to the preservation of endangered forests globally and advancing best practices within the book and paper industries The printing papers used in this book are 100% recycled fiber, acid-free (Process Chlorine Free), and have been certified with the Forest Stewardship Council (FSC) eBook ISBN 978-1-61332-014-3 Publication Date: October 2013 FIRST EDITION Library of Congress Cataloging-in-Publication Data From foreclosure to fair lending : advocacy, organizing, occupy, and the pursuit of equitable credit / edited by Chester Hartman and Gregory D Squires — First edition pages cm Summary: “Twenty-four well-known fair housing and fair lending activists and organizers examine the implications of the new wave of fair housing activism generated by Occupy Wall Street protests and the many successes achieved in fair housing and fair lending over the years The book reveals the limitations of advocacy efforts and the challenges that remain Best directions for future action are brought to light by staff of fair housing organizations, fair housing attorneys, community and labor organizers, and scholars who have researched social justice organizing and advocacy movements The book is written for general interest and academic audiences Contributors address the foreclosure crisis, access to credit in a changing marketplace, and the immoral hazards of big banks They examine opportunities in collective bargaining available to homeowners and how low-income and minority households were denied access to historically low home prices and interest rates Authors question the effectiveness of litigation to uphold the Fair Housing Act’s promise of nondiscriminatory home loans and ask how the Consumer Financial Protection Bureau is assuring fair lending They also look at where immigrants stand, housing as a human right, and methods for building a movement Chester Hartman is an urban planner, academic, author of more than twenty books, and director of research for the Poverty & Race Research Action Council Gregory Squires is a professor of sociology and public policy and public administration at George Washington University and advisor to the John Marshall Law School Fair Housing Legal Support Center.”— Provided by publisher Includes bibliographical references and index Housing—United States Housing policy—Citizen participation Mortgage loans—United States Economic policy—United States—Citizen participation Occupy movement—United States I Hartman, Chester W II Squires, Gregory D HD7293.F756 2013 332.7’20973—dc23 2013023686 Front cover design by Lynne Elizabeth Cover photograph by Brennan Cavanaugh Interior design and composition by Leigh McLellan Design Contents FOREWORD Undoing the Bitter Legacy of Segregation and Discrimination Douglas S Massey INTRODUCTION Occupy Wall Street: A New Wave of Fair Housing Activism? Gregory D Squires and Chester Hartman The Activists The More Things Change, the More They Stay the Same: Race, Risk, and Access to Credit in a Changing Market Debby Goldberg and Lisa Rice Onward and Upward: The Fight to Ensure Equal Access to Credit via the Federal Housing Administration David Berenbaum and Katrina S Forrest Five Lessons Offered by but Not Learned from the Recent Collapse of the US Economy and the Housing Market James H Carr and Katrin B Anacker Opportunity Lost: How Low-Income and Minority Households Were Denied Access to Historically Low Home Prices and Interest Rates M William Sermons Finding a Home for the Occupy Movement: Lessons from the Baltimore and Memphis Wells Fargo Litigation John P Relman A Tale of Two Recoveries: Discrimination in the Maintenance and Marketing of REO Properties in African American and Latino Neighborhoods across America Shanti Abedin and Shanna L Smith The Organizers Building the Power to Win the Battle of Big Ideas and Advance a Long-Term Agenda George Goehl and Sandra Hinson Forcing Banks to the Bargaining Table: Renegotiating Wall Street’s Relationship with Our Communities Stephen Lerner and Saqib Bhatti 10 Housing as a Human Right: Where Do Immigrants Stand? Janis Bowdler, Donald L Kahl, and José A Garcia The Scholars 11 The Limits of Litigation in Fulfilling the Fair Housing Act’s Promise of Nondiscriminatory Home Loans Robert G Schwemm 12 Housing, Race, and Opportunity john a powell 13 Winning Battles and Losing the War: The Progressive Advocacy World Mike Miller 14 Building a Movement for Fair Lending, Foreclosure Relief, and Financial Reform Peter Dreier CONTRIBUTORS ACKNOWLEDGMENTS INDEX FOREWORD Undoing the Bitter Legacy of Segregation and Discrimination Douglas S Massey of the twentieth century, the United States transformed itself into a racially segregated society in which black and white citizens occupied separate and vastly unequal segments of the urban landscape As African Americans moved out of the rural South en masse to take factory jobs and service positions in industrializing cities throughout the nation, ever higher levels of racial segregation were imposed by whites (Lieberson 1981) By 1940, the black ghetto had become a standard feature of urban America maintained through institutionalized discrimination in the real estate and lending industries and built into public policies at all levels of government (Katznelson 2005) From 1940 to 1970, black segregation persisted at extremely high levels across virtually all urban areas Despite significant changes in the size and geographic distribution of the urban black population, the ghetto remained a constant The residential color line simply moved in space as the ghetto expanded in size (Massey and Denton 1993) During this period, real estate agents refused to rent or sell homes to blacks within white neighborhoods and systematically steered African American home seekers to black or racially changing neighborhoods Lenders refused to grant mortgages to black home buyers and denied credit to anyone living in a black or racially changing neighborhood— practices that were built into the US Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) lending programs Given these structural constraints, segregation and urban decay were inevitable Any neighborhood that opened up to black settlement quickly became allblack, and once it became part of the ghetto, it was cut off from capital investment, leading to physical deterioration Conditions for African Americans began to improve during the civil rights movement, but the discriminatory supports for housing segregation proved to be intractable Although early drafts of the Civil Rights Act contained prohibitions on discrimination in housing and mortgage lending, they were dropped as the legislation worked its way toward passage As a result, the 1964 Civil Rights Act banned racial discrimination in labor markets, retail sales, and public service provisions and the Voting Rights Act of 1965 guaranteed black voting rights and banned practices used to keep blacks from the polls, but discrimination in lending and housing remained perfectly legal Even Lyndon Johnson’s formidable legislative skills were unable to change the status quo when it came to neighborhoods As black neighborhoods deteriorated in the face of political isolation and systematic disinvestment, race riots swept through America’s urban ghettos despite the Civil Rights Acts It was only in the wake of the assassination of Martin Luther King, Jr and a final spasm of racial violence that Congress finally acted to outlaw discrimination in the rental and sale of housing With National Guard troops stationed in the Capitol to protect it from rioters in adjacent neighborhoods, Congress passed the 1968 Fair Housing Act, which declared discrimination in housing markets to be unlawful I N THE FIRST DECADES but provided weak measures to enforce the law Congressional action against discrimination in mortgage lending was even later in coming Not until 1974 did Congress pass the Equal Credit Opportunity Act to outlaw discrimination against black borrowers, and it was not until 1977 that Congress passed the Community Reinvestment Act to ban the practice of redlining by which financial institutions had long channeled funds away from black neighborhoods By the late 1970s, of course, much of the damage to urban black America had been done Decades of isolation and disinvestment had left urban blacks in a very vulnerable position and the stage was set for even more pronounced declines with the rise of income inequality during the 1980s, which drove up the spatial concentration of poverty within black neighborhoods to unprecedented levels (Wilson 1987; Massey and Denton 1993) The concentration of poverty, in turn, only served to exacerbate the disadvantage that African Americans experienced because of their race and class, isolating them from societal resources and exposing them to uniquely high levels of violence and disorder (Peterson and Krivo 2010) that would have grave consequences for well-being on a variety of dimensions (Sampson 2012; Massey et al 2013) At present, the principal mechanism for the perpetuation of low socioeconomic status among African Americans is the intergenerational transmission of neighborhood disadvantage (Harding 2010; Sharkey 2013) Poor urban blacks routinely experience concentrations of poverty not experienced by any other group in the United States, a condition determined primarily by the persistence of black segregation at uniquely high levels (Massey and Fischer 2000; Quillian 2012; Massey and Rugh, forthcoming) Despite the Fair Housing Act, the Equal Credit Opportunity Act, and the Community Reinvestment Act, black segregation has been slow to change At the same time, levels of segregation and isolation have risen for Hispanics as their share of the population grew from 4.7 percent in 1970 to 16.3 percent in 2010 (Massey, Rothwell, and Domina 2009) As of 2010, 60 percent of blacks and 50 percent of Hispanics would have to exchange neighborhoods with nonHispanic whites to achieve an even distribution across neighborhoods The average urban African American lives in a neighborhood that is 45 percent black, while the average urban Latino lives in a neighborhood that is 47 percent Hispanic (Massey and Rugh, forthcoming) Trends and levels of segregation and isolation are conditioned by the size of the minority community, however, and in those metropolitan areas where a majority of blacks live, an extreme form of separation known as hypersegregation continues to prevail Likewise, in those metropolitan areas housing a majority of Hispanics, segregation levels are rising and hypersegregation has emerged (Wilkes and Iceland 2004) Segregation persists because of the weak enforcement measures authorized by civil rights legislation and weak actions on the part of public authorities to implement those statutory provisions for enforcement that exist What legislation did accomplish was an end to overt discrimination in housing and lending Although minorities are no longer openly denied access to homes and credit, audit studies reveal that discriminatory practices still continue surreptitiously (Squires 1994; Turner et al 2002; Ross and Turner 2004) At the same time, new and more subtle forms of discrimination have been invented (Massey 2005), such as name discrimination (Bertrand and Mullainathan 2004), linguistic profiling (Massey and Lundy 2001; Squires and Chadwick 2006), predatory lending (Squires 2004), and reverse redlining (Friedman and Squires 2005; Brescia 2009) Density zoning has also emerged as a powerful force promoting racial segregation, since limits on the density of residential construction drive up the cost of suburban housing and make it unaffordable to low- and moderate-income households, which are disproportionately minority (Rothwell and Massey 2009) In the twenty-first century, predatory lending and reverse redlining have been particularly vicious in affecting African Americans Predatory lending occurs when black households are targeted for subprime mortgages and other exploitive lending products Reverse redlining occurs when such products are systematically targeted to black neighborhoods Both forms of discrimination played an outsized role in the recent housing bust, heaping the pain of foreclosure disproportionately on already vulnerable black communities The disproportion occurred because ongoing segregation had concentrated black home owners spatially, enabling unscrupulous mortgage brokers to target them for exploitation easily and efficiently Indeed, the degree of black segregation was the strongest single predictor of the number and rate of home foreclosures across US metropolitan areas between 2006 and 2008 (Rugh and Massey 2010) Reverse redlining and predatory lending emerged as new forms of discrimination in the 1990s with the rise of securitized mortgages Securitized mortgages are not held by banks but pooled together to back bonds known as collateralized debt obligations (CDOs) that are then sold to private investors The advent of CDOs transformed mortgage lending from a bank-based to a securities-based system, vastly expanding the pool of money available for lending (Rugh and Massey 2010) Because virtually any mortgage, however shaky, could be bundled and sold as a CDO, borrowers in ghettos and barrios who were formerly shunned by lenders became very attractive, initiating a new wave of predatory lending and reverse redlining in which independent brokers generated as many high-risk mortgages as they could and immediately sold them to financial institutions, which then capitalized the shaky loans as securities and sold them to third party investors who bore the loss when the housing bubble burst and foreclosures spread In the course of the boom and bust cycle, housing wealth was created and then sucked out of black communities throughout the United States As a result, median black wealth fell from $14,000 in 2007 to $4,800 in 2009, well below its value two decades earlier While the ratio of black-to-white wealth was 10 percent in 1990, the figures stood at percent in 2010 (Massey, forthcoming) In essence, what little housing wealth black households had been able to accumulate in cities around the nation before 2006 was transferred into the pockets of white investors in and around New York In sum, discrimination in lending does much more than simply deny black families access to housing and capital Indeed, these discriminatory practices played a central role in extracting what little wealth existed in black communities and reducing black assets to their lowest level in decades, both absolutely and relative to whites Discrimination in lending actively promotes the perpetuation of socioeconomic deprivation among African Americans, underscoring the critical importance of equal access to credit for racial equality in the United States and the urgent need for advocacy, organizing, and occupying to achieve it References Bertrand, Marriane, and Sendhil Mullainathan 2004 “Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination.” American Economic Review 94: 991–1013 Brescia, Raymond H 2009 “Subprime Communities: Reverse Redlining, the Fair Housing Act and Emerging Issues in Litigation Regarding the Subprime Mortgage Crisis.” Albany Government Law Review 2: 164–216 Friedman, Samantha, and Gregory D Squires 2005 “Does the Community Reinvestment Act Help Minorities Access Traditionally Inaccessible Neighborhoods?” Social Problems 52: 209–231 Harding, David J 2010 Living the Drama: Community, Conflict, and Culture among Inner-City Boys Chicago: University of Chicago Press political science, or community organizing at numerous universities, including the University of California-Berkeley, Stanford University, San Francisco State University, and University of Notre Dame Miller is the author of A Community Organizer’s Tale: People and Power in San Francisco (2009) and Community Organizing: A Brief Introduction (2012) john a powell Robert D Haas Chancellor’s Chair in Equity and Inclusion and the Director of the Haas Diversity Research Center, University of California-Berkeley powel008@yahoo.com At the University of California-Berkeley, john a powell is Professor of Law and Professor of African American Studies and Ethnic Studies He is also Director of the Haas Diversity Research Center and holds the Robert D Haas Chancellor’s Chair in Equity and Inclusion He was recently the Executive Director of the Kirwan Institute for the Study of Race and Ethnicity at Ohio State University, where he held the Gregory H Williams Chair in Civil Rights & Civil Liberties at the Moritz College of Law He is an internationally recognized expert in the areas of civil rights and civil liberties and on a wide range of issues including race, structural racism, ethnicity, housing, poverty, and democracy John P Relman Managing Partner, Relman, Dane & Colfax PLLC JRelman@relmanlaw.com John P Relman is the founder and Managing Partner of Relman, Dane & Colfax PLLC, a public interest law firm specializing in civil rights litigation From 1989 to 1999, Relman headed the Fair Housing Project at the Washington Lawyers’ Committee for Civil Rights Relman has written and lectured extensively in the areas of fair housing and fair lending law and practice, and has provided numerous training classes and seminars for plaintiffs’ lawyers, fair housing organizations, the real estate industry, and lending institutions He is the author of Housing Discrimination Practice Manual (1992) and has served as an Adjunct Professor at Georgetown University Law Center and the Washington College of Law at the American University Lisa Rice Vice President, National Fair Housing Alliance LRice@nationalfairhousing.org Lisa Rice is Vice President of the National Fair Housing Alliance (NFHA), where she oversees the communications, resource development, public policy, and enforcement initiatives of the agency She is responsible for helping to achieve the organization’s goal of addressing the crisis of segregation in America and the ultimate goal of realizing a truly open society Under Rice’s leadership, NFHA played a major role in helping to establish the Consumer Financial Protection Bureau, which was formed under the Dodd-Frank Wall Street Reform and Consumer Protection Act Rice joined NFHA after serving as CEO of the Toledo Fair Housing Center and the Northwest Ohio Development Agency While serving at these organizations, she developed and implemented Ohio’s first predatory lending remediation program Robert G Schwemm Ashland-Spears Professor, University of Kentucky College of Law schwemmr@uky.edu Robert G Schwemm is the Ashland-Spears Professor at the University of Kentucky College of Law He began his legal career with Sidley & Austin in Washington, DC, and then was Chief Trial Counsel for the Leadership Council for Metropolitan Open Communities in Chicago His writings on fair housing law include the major treatise in the field, Housing Discrimination: Law and Litigation (1990 and annual updates), and numerous articles in leading law reviews throughout the country He has been plaintiffs’ counsel in several landmark housing discrimination cases, including three in the US Supreme Court From 1986 to 1990, he was Vice-Chair of the Kentucky Commission on Human Rights, and, in 1991, served as Special Attorney and Scholar-in-Residence with the Civil Rights Division of the Department of Justice M William Sermons Executive Vice President and Research Director, Center for Responsible Lending bill.sermons@reesponsiblelending.org M William Sermons is Executive Vice President and Research Director of the Center for Responsible Lending (CRL) He is responsible for advancing a policy research agenda into abusive lending practices and works to ensure the delivery of CRL’s programs and activities in the areas of research, California advocacy, litigation, and communications In addition to his work at CRL, he teaches cost-benefit analysis to students in the Carnegie Mellon University’s Heinz College Master in Public Policy program He is the former Director of the Homelessness Research Institute, where he directed both the research and communications functions of the National Alliance to End Homelessness Shanna L Smith President and CEO, National Fair Housing Alliance ssmith@nationalfairhousing.org Shanna L Smith is President and CEO of the National Fair Housing Alliance (NFHA) and has been engaged in fair housing and fair lending enforcement, education, and research for thirty-six years Prior to joining NFHA, Smith was Executive Director of the Toledo Fair Housing Center for fifteen years, where she developed groundbreaking cases that successfully challenged discriminatory policies and practices, including the denial of loans to African American and white borrowers because of minimum mortgage loan amounts, private mortgage insurance minimum home value amounts, discriminatory appraisal practices, and homes located in racially integrated neighborhoods Gregory D Squires Professor of Sociology and Public Policy and Public Administration, George Washington University squires@gwu.edu Gregory D Squires is a Professor of Sociology and Public Policy and Public Administration at George Washington University Prior to joining the faculty at George Washington University, Squires taught at the University of Wisconsin-Milwaukee and served as a Research Analyst with the US Commission on Civil Rights His recent books include The Integration Debate: Competing Futures for American Cities (with Chester Hartman, 2010), There Is No Such Thing As a Natural Disaster: Race, Class, and Hurricane Katrina (with Chester Hartman, 2006), Privileged Places: Race, Residence and the Structure of Opportunity (with Charis E Kubrin, 2006), Why the Poor Pay More: How to Stop Predatory Lending (2004), and Organizing Access to Capital (2003) Acknowledgments to this volume who we want to thank, and no doubt we will miss a few—to those, we apologize up front First, we want to thank all of the authors for their contributions to this book and for the work they every day Each and every one of them is deeply engaged in the struggles this book is about; these are not simply academic interests for any of them Second, we want to express our great appreciation to Michael Seng, who brought most of us together in Chicago at the John Marshall Law School to share ideas that led to the completion of this book As will become evident to every reader, each one of us has learned and benefited from the many who came before us Some, though certainly not all, are noted in the references and bibliographies in each chapter We also want to thank the Columbian College of Arts and Sciences and the Department of Sociology at George Washington University for their support Teri Grimwood did her usual stellar job creating the Index Finally, we want to express our gratitude to our editor at New Village Press, Laura Leone, who went way above and beyond the normal call of duty in putting all of this together We have made many friends in the production of this volume and, hopefully, we did not lose too many! We thank you all S EVERAL PEOPLE CONTRIBUTED Chester Hartman & Gregory D Squires Index Page references followed by fig indicate an illustrated figure or photograph Page references that include an “f” indicate a footnote A Abedin, Shanti, 10, 129 Accuracy in Academia, 294 adjustable rate mortgage (ARM), 86, 87, 88, 129, 311; cost of, 295–296 Advance America, 194 Alabama, and immigration law, 210, 214, 222 Alcoa, 293 Alexander, Michelle, 268 Alinsky, Saul, 277, 280 Alliance of Californians for Community Empowerment (ACCE), 187, 200, 200fig, 201 Ally Financial Inc., Alternative Banking Group (Alt Banking), Alternative Mortgage Transaction Parity Act, 58 American Bankers Association (ABA), 194, 201, 233, 289, 310 American Bankruptcy Institute, 177 American Civil Liberties Union (ACLU), 255, 259, 260 American Dream, 52, 62, 165, 189, 297 American Enterprise Institute, 294 American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), 307 American Institute of Real Estate Appraisers, American International Group, Inc (AIG), 69, 307 American Legislative Exchange Council (ALEC), 194, 294 American Recovery and Reinvestment Act (ARRA), 70, 71 Americans for Financial Reform (AFR), 2, 292, 302, 307, 308, 309, 312 Americans for Tax Reform, 299–300, 314 Anacker, Katrin B., 10, 55 Analyst Institute, 184 Ariely, Dan, 65–66 Arizona v United States, 213 Arizona, 211, 213, 214, 222 Arlington Heights v Metropolitan Housing Corp., 257 Asian Art Museum, 188 Association of Community Organizations for Reform Now (ACORN), 2, 276, 309, 312 Atlanta, Georgia, 109; and foreclosures, 147–149; and Occupy Our Homes, 199; and Wells Fargo, 244 B Bailey, Helen, 109 Baker, Ella, 277 Baltimore Housing Mobility Program, 259, 260 Baltimore, Maryland, and lawsuits, 106; and LIBOR panel banks, 188; and Thompson v HUD, 259; and Wells Fargo, 111–126, 239, 241, 244 Bank of America Corporation, 3, 24, 181, 191, 194, 196, 197fig, 231, 241, 289; and discretionary pricing, 240; and payday loans, 192; and REO properties, 244; and subprime lending, 296; as target, 291 Bank of New York Mellon Corporation, Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, 177 bankruptcy, 36, 177, 179, 181, 186, 310 banks See financial services industry Barclays, Barlett, Donald, 63 base Christian communities (BCCs), 272–275 Bear Stearns Companies, Inc., 69, 197fig Beck, Glenn, 212 Berenbaum, David, 10, 41 Bernanke, Ben, 58, 133 Bhatti, Saqib, 11, 177 Birmingham, Alabama, 109, 127, 278 Black Panthers, 277 Black, William K., Blankfein, Lloyd, 56, 58, 73, 194 Bleck, Sean, 251 Bocian, Debbie, 72 Boston Redevelopment Authority, Boushey, Heather, 65, 67 Bowdler, Janis, 11, 207, 216 Bradley Foundation, 294 Brazil, 59, 272–275 Bricker, Jesse, 64, 68 British Bankers Association (BBA), 187 Broker Price Opinion (BPO), 153 Brooke, Edward, 131 Brown v Board of Education, 255, 256 Brown, Amos, 282 Buffett, Warren, Bush, George H W., 162 Bush, George W., 289, 295 Business Roundtable, 293, 308, 311 C Cahill, Timothy, 191 California, 191; and ACCE, 200; and interest rates, 189; city bankruptcies, 186 California, University of Southern, 210 California, University of, 194, at Davis, Cantor, Daniel, 174 Cantor, Eric, 71 Capitol Heights, Maryland, 143fig Carr, James H., 10, 55 Cash America, 194 Cashin, Sheryll, 262 Cato Institute, 294 Census Bureau, US, 7, 63f1, 208f2, 208f3; and definitions, 138f7 Center for Community Change, 2; attacks on, 312 Center for Fair Housing, Inc., 215 Center for Responsible Lending (CRL), 2, 85, 133, 133f5, 134, 214, 246, 309; attacks on, 312 Central Alabama Fair Housing Center, 215 Chamber of Commerce, California, 294 Chamber of Commerce, US, 163, 194, 293, 311; and political power, 308 Change to Win, 307 Charleston, South Carolina, 148fig Chavez, Cesar, 283 Chavis, Ben, Chen, Bing, 95 Chicago Housing Authority (CHA), 255 Chicago Teachers Union, 201 Chicago, Illinois, 200, 201; and racial concentration, 4; as gateway, 209, 210 Chicago, University of, 194 Child Development Group of Mississippi, 279 China, 59, 72 Cigna, 291 Cincinnati, Ohio, 200 Cincotta, Gale, 1, 2, 14, 161, 162, 165, 166, 279 Citigroup Inc., 3, 69, 191, 197fig, 231, 289 Citizens for a Sound Economy, 294 Citizens United, 169 Civil Rights Act of 1866, 257 Civil Rights Act of 1964, 255 Civil Rights Act of 1968 See Fair Housing Act (FHA) civil rights movement, 2, 14, 107, 109; and alliances, 300; and Deep South, 278, 279, 281; and litigation, 126; and voter registration, 281; as model, 41, 42; infrastructure of, 174 Clean Air Act, 301, 303 Clean Water Act, 301 Cleveland, Ohio, and racial concentration, 4; litigation by, 239 climate change, 5, 169, 299, 313, 314, 318 Clinton, William, 289, 294 Coalition for Derivatives End-Users, 308 Coalition to Stop Goldman Sachs, 187 Collins, William, 26 Collum, Danny, 276 Communities United for Action, 200 Community Development Block Grant, 154 community organizing, 11, 111, 125, 163, 165, 166, 170, 276, 278, 317; connecting to, 184; shifts in, 171 Community Reinvestment Act (CRA), 2, 4, 49, 51, 52, 60, 165, 166, 178, 303; as reform, 310, 311; violations of, 47, 50; establishment of, 296 community reinvestment movement, 2, 4–5, 161 Comptroller of the Currency, Office of (OCC), 45, 60–61 Conard, Edward, 66 Concord, California, 143fig Congress of Industrial Organizations (CIO), 277 Congress, US, attitude of, 74; and bank deregulation, 290, 295; and FHA, 131, 256; and progress on issues, 294; and REO properties, 153–154; former members as lobbyists, 308; potential allies in, 309 Congressional Budget Office, 70–71 Consumer Expenditure Survey, 63, 88, 89fig Consumer Federation of America, 2; attacks on, 312 Consumer Financial Protection Bureau (CFPB), 45, 58, 61, 73, 153, 243, 244, 287, 312; and FICO requirements, 52 Consumer Price Index, 69 Consumers Union, 312 Coors, Joseph, 294 corporate-conservative thinkers, 175 corporate-conservative worldview, 165, 171, 172 corporations, political power, 179; reduction of power, 170; restructuring of, 169 Corrections Corporation of America (CCA), 194 Countrywide Financial Corporation, 3, 69, 88, 155f10, 197fig, 215, 231; and discretionary pricing, 240, 241; and predatory lending, 24; lawsuits against, 239 Countrywide Savings, and subprime lending, 296 credit overlay, 44, 47, 48, 52, 53 credit scoring, 24, 28–30, 35, 38, 181, 235–236, 243; and access to credit, 43–44; and FHA, 44–45; discrimination in, 45–48, 47fig; incorporation of, 36; minimum required, 51–52; raising of, 49; and predictive value, 31–32 See also FICO score Credit Suisse Group AG, 3; and derivatives, 308 D Dallas, Texas, 244 Dancy, Doris, 119 Dayton, Ohio, 145, 244 debt See financial services industry Declaration of the Occupation of New York City, 11–12 decline in membership, 61, 67; and immigrants, 222; and organizing, 178, 268, 269, 275–277, 285; as threat, 293 Defend Our Homes, 184 DeMarco, Edward J., 292f2 Democratic Party, 162, 175; and 1964 convention, 282; and civil rights movement, 279; and electoral coalitions, 318; decision making in, 173, 174 Denton, Nancy, 4, 110, 262 Depository Institutions Deregulation and Monetary Control Act, 58, 297 deRitis, Cristian, 37 Detroit, Michigan, Deutsche Bank, 231 Dimon, Jamie, 57, 58, 73, 194 Dobbs, Lou, 212 Dodd-Frank Wall Street Reform and Consumer Protection Act, 9, 32, 33, 34, 52, 56, 57, 73, 83, 84, 243, 287, 288, 307, 312 Donovan, Shaun, 259–260 down payment, and FHA loans, 51–52; and FHA policy, 44–45; and US Congress, 43–44; rates, 74; assistance programs, 125; discouragement of, 118, 122; requirements for, 243 See also homeownership; qualified residential mortgage (QRM) Draut, Tamara, 94 Dreier, Peter, 4, 7, 11, 268, 287 E East Bay, California, 144–145 Economic Analysis, Bureau of, 90 Economic Policy Institute, 22 Economic Stimulus Act of 2008, 70 Einstein, Albert, 271 Ellison, Keith, 127 Emergency Economic Stabilization Act (EESA), 70 eminent domain, 181, 185–186, 292 Engel, Kathleen, 59 environmental groups, 5, 317 Environmental Protection Agency, 301 Equal Credit Opportunity Act (ECOA), 2, 42; violation of, 47, 48, 51 Equal Rights Center (ERC), 215, 219–222 Ettlinger, Michael, 62 Evergreen Legal Services, 250 eviction, 106, 108 See also foreclosure crisis F Failures of Integration, The (Cashin), 262 Fair Housing Act (FHA), 2, 26, 27, 106, 131–132, 207, 256; and antidiscrimination laws, 217; enforcement of, 215; and housing desegregation, 254; and litigation, 11, 216, 229–247; and public housing, 254–255; as legal tool, 131; passage of, 110; as reform, 310; understanding of, 151; violations of, 113, 115, 223 Fair Housing Amendments Act (FHAA), 131, 234, 260 Fair Housing Center of Northern Alabama, 215 fair housing, 1; and credit scoring, 32; and training program, 150 Fannie Mae, 33, 37, 38, 60, 118, 165; and foreclosures, 135; and renegotiation of loans, 292f2; and transparency, 246; as regulatory agency, 296; engagement with, 184; replacement of, 38 Federal Bureau of Investigation (FBI), 212, 277, 300 Federal Deposit Insurance Corporation (FDIC), 70, 296; and mortgage lending, 45 Federal Home Loan Bank System, 296 Federal Housing Administration (FHA), 41–53, 135; and mortgage insurance, 38, 45–46; and mortgages, 58; and redlining, 1–2; and restrictive covenants, 26; decline in role, 296; increase in loans, 49; role of, 10 Federal Reserve Bank of New York, 194 Federal Reserve Bank of San Francisco, 28 Federal Reserve Board, 23, 31; and discretionary pricing, 242; and wealth loss, 23; and “invisible hand,” 56; and bailout programs, 189; and consumer credit, 190; and interest rates, 60, 86, 186, 187, 196; National Information Center, 178 FHA Secure program, 71 FICO score, 34, 47fig, 51–52, 85, 116 See also credit scoring Fifth Third Bank, 192 Financial Crisis Inquiry Commission, 261 financial services industry, 23–24, 28, 177–202; and antipredatory lending, 60–61; and bulk sales auctions, 154; and communities, 11; and deregulation, 296–297; and dual lending marketplace, 42; and economic havoc, 21; and FHA violations, 44–45; and foreclosures, 3, 4, 6; and fringe market, 27, 28; and interest rate swaps, 187; and lobbyists, 308; and Option ARMs, 24; and REO properties, 135–139, 151; and restrictive covenants, 2; and revitalization, 154; and savings-and-loan institutions, 296–297; and secondary mortgage market, 37–38, 47, 48; and securitization, 59–60; and subprime lending, 3, 4; as target, 6; behavior of, 295; deregulation of, 289; near collapse of, 32–33; power of, 4, 308; reform of, 287–318; regulation of, 307, 308; transfer to community banks, 168; transparency, 246 See also credit scoring; foreclosure crisis; mortgage lending; predatory lending; qualified residential mortgage (QRM); subprime lending Financial Services Modernization Act of 1999, 57 Financial Services Roundtable, 194 Financial Stability Act of 2009, 72 Flagstar Bank, 236 Fletcher, Bill, 175 Flowers, Gary, 109 Ford, Gerald, 162 foreclosure crisis, 21, 22, 31–32, 37, 55, 73, 84–85, 96, 183, 296; and eviction, 199; avoided foreclosures, 70, 242; causes of, 43; continuing, 74; effects of, 24–25, 34, 115, 116, 120–121, 130, 154, 155, 177, 215; escalation of, 87, 239; failure of response to, 132; and FHA, 49; and government intervention, 71; and Great Depression, 26; and justice, 111; and loss of wealth, 69; potency of, 124–125; prevention of, 72, 86; and relief, 287–292; and settlements with banks, 196; struggle against, 106, 108; and toxic loans, 46; and voter attitude, 291; and whistleblowers, 192 Forrest, Katrina S., 10, 41 France, Anatole, 281 Frank, Barney, 297 Franzen, Tim, 109 Freddie Mac, 33, 38, 60, 118, 165; engagement with, 184; and foreclosures, 135; and renegotiation of loans, 292f2; and REO properties, 152; replacement of, 38; and transparency, 246 Frederick, Maryland, 215 Frederickson, Steve, 251 Ft Lauderdale, Florida, 244 G Ganz, Marshall, 302, 305 Garcia, José A., 11, 94, 207 Gaudette, Tom, 166 Gautreaux v Chicago Housing Authority, 255–256, 257, 258 Geithner, Tim, 290, 291 General Electric, 291, 293 Georgia, 210 Germany, 67 Gingrich, Newt, 56 Ginnie Mae, 45, 48 Gitlin, Todd, 13–14 Glover, Danny, 175 Goehl, George, 11, 161, 291 Goldberg, Debby, 10, 21 Goldberg, John, 231 Goldblatt, Lou, 281 Goldman Sachs Group, Inc., 3, 193, 194, 260, 289, 307; boycott of, 187; and derivatives, 308; and subprime lending, 296 Government Accountability Office, 60 government-sponsored enterprises (GSEs), 33, 57, 60, 70, 73, 135, 165; reform of, 74, 83 Gramlich, Edward, 297, 309 Grassroots Policy Project (GPP), 171, 172 Great Depression, 6, 45, 161, 211, 295; and bank regulation, 296; and foreclosure crisis, 26 Great Recession, 42, 62, 64, 67, 68, 69–70, 90, 288; and debt load, 99; and wealth loss, 95, 96 Great Society, 294, 315 Greenlining Institute, 312 Greenspan, Alan, 43, 57–58, 73, 293, 297 gross domestic product (GDP), 68, 70, 88, 89fig , 90 Guinier, Lani, 253 H Hacker, Jacob, 65, 316 Hamer, Fannie Lou, 282 Hargraves v Capital City Mortgage Corp., 238 Harper v Union Sav Ass’n, 234 Harris, Kamala, 291 Hartman, Chester, 1, 110, 161 Hazelton, Pennsylvania, 213 Head Start Program, 303 Health Care for America Now (HCAN), 308, 309 health care, 28, 63; decisions on, 276; disparities in, 171; reform of, 301, 302, 309, 313, 314; universal, 262 Heritage Foundation, 294 Hersh, Adam, 65, 67 Hinson, Sandra, 11, 161 Hispanics, 47, 133, 295; access to financial services, 28, 42, 84–85; and discrimination, 4, 10, 46–47, 133, 295; and economic crisis, 165; and fair housing complaints, 217; and foreclosure rates, 108, 137–138; and government-backed finance, 52; growth rate of, 208–209; and homeownership, 23, 24, 207; and net worth, 22, 64–65; and Occupy Our Homes, 107; and predatory lending, 129; and REO properties, 144–145, 215; and wealth, 6–7, 23, 63, 83, 92, 101–102, 113 Home Affordable Modification Program (HAMP), 72 Home Affordable Refinance Program (HARP), 72 Home Defenders League, 183–184 Home Mortgage Disclosure Act (HMDA), 162, 166, 235, 296; as reform, 310 Home Owners’ Loan Corporation (HOLC), 26, 34 Home Ownership and Equity Protection Act (HOEPA), 60 homeownership, 22–23, 37–38, 45–46, 126, 179; as American Dream, 189–190; and down payment levels, 34–35; and governmentbacked finance, 52; opportunities for, 112, 114, 153, 155, 279; as wealth, 22, 55–56, 68–69, 90, 133–134 Hope for Homeowners (H4H), 72 Hope Now Alliance, 71 House Committee on Oversight and Government Reform, US, 293 Housing and Economic Recovery Act (HERA), 70, 72 Housing and Urban Development, US Department of (HUD), 3, 44, 110, 212, 216–217, 236, 256; employment policies of, 218; enforcement mechanism, 131–132; Fair Housing and Equal Opportunity Office, 220; and FHA-impact regulation, 246; and Gautreaux, 255–256; investigation by, 46–47; and mortgage lending, 45; and public housing, 259–260, 261; and redlining, 114; and Wells Fargo, 130 Housing Choice Vouchers, 221 housing, 11, 14; fair, 10, 106, 109, 178; market, 68–69; and immigrants, 207–223; public, 2, 254–255, 259; and race, 249–265; rental, 215 hypersegregation, 4, 110 I Illegal Immigration Relief Act Ordinance (IIRA), 213 Illinois, 106, 122, 191 Immigration and Customs Enforcement (ICE), 217 immigration, 11, 207–223, 214; and attacks on Hispanics, 215; reform of, 194, 209, 313 314; undocumented, 270 income See wealth India, 59 Industrial Areas Foundation, 166 IndyMac, 70 insurance 12, 27, 132 International Longshore and Warehouse Union, 281 Internet, 62, 153, 221, 272, 283–284 ISAIAH, 172 J Jackson, Jesse, 175 Jacobson, Beth, 117–118, 123 John M Olin Foundation, 294 Johnson, Lyndon B., 131, 256, 282, 300 Jones v Alfred Mayer Co., 257 Jordan, June, JPMorgan Chase & Co., 3, 6, 57, 109, 197fig, 200fig, 289; board memberships of, 194; and derivatives, 308; and interest rates, 189; and letters of credit, 188; and Occupy Oakland, 5; and payday loans, 192; risky bets, 196 Justice, US Department of (DOJ), 3, 24, 215; Civil Rights Division, 106, 122, 123; and enforcement mechanism, 131; fair lending taskforce of, 240–241; FHA lending cases and, 245; and mortgage lending, 45; and pattern or practice cases, 235; and racial demographics, 234, and settlement with Countrywide Financial, 155; and Wells Fargo, 111 K Kahl, Donald L., 11, 207 Kamasaki, Charles, 216 Kemp, Jack, 162 Kerner Commission, 256 King, Martin Luther, Jr., 109, 126, 127, 264–265, 300; assassination of, 131, 256; and Southern Christian Leadership Conference, 278 Kirwan Institute, Ohio State University, 258, 259, 260, 261 Koch Foundation, 294 Kochhar, Rakesh, 64 Krugman, Paul, 13, 14, 71 L Labor Statistics, Bureau of (BLS), 69 labor unions, 5, 10; assault on, 164, 295; in coalitions, 13–14; and collective bargaining, 280–281 Landless Workers’ Movement, 274 Law Enforcement Assistance Administration, 280 Leadership Conference on Civil and Human Rights, 127, 133f5 Lehman Brothers Holding Inc., 69, 289 Lender Processing Services (LPS), 49 Lerner, Avi, 70 Lerner, Stephen, 11, 177, 291 letter of credit (LOC), 186, 188, 189 Levin, Jack, 212 London Inter-Bank Offered Rate (LIBOR), 186–188, 196 Long, Huey, 269, 270 Los Angeles, California, 6, 200 Lost Ground (Center for Responsible Lending), 85 Lozano, Monica, 194 M Madland, David, 62 MakeWallStreetPay, Making Home Affordable (MHA), 72 Making Work Pay, 70 Manassas, Virginia, 213, 221 Manhattan Institute for Policy Research, 294 Margo, Robert, 26 Marshall, Thurgood, 127 Massachusetts, 191 Massey, Douglas S., 4, 110, 260, 262 MBNA, 181, 197fig McCoy, Patricia, 59 McMichael, Stanley, 26–27 McMichael’s Appraising Manual (McMichael), 26–27 Memphis, Tennessee, 106; and Wells Fargo, 111–126, 239, 241 Merrill Lynch, 69, 197fig Metro Fair Housing, 147 Mexican American Legal Defense and Education Fund, 212 MGIC, 34, 35 Miami Valley Fair Housing Center, 145 Miami, Florida, and ACCE, 200; and Wells Fargo, 244 Mihm, Stephen, 57 Miller, Mike, 11, 267 Milwaukee, Wisconsin, and racial concentration, Min, David, 60 Miner’s Canary, The (Torres), 253 Minneapolis, Minnesota, and Occupy Our Homes, 199, 199fig Minnesota, 127 Mississippi, 279 Model Cities program, 280 Mondale, Walter, 131 Montgomery County, Maryland, 142 Moody’s, 296, 311 Morgan Stanley, and subprime lending, 181, 296 Mortgage Bankers Association, 201 mortgage lending, 60, 70, 98; and antipredatory lending, 60–61; and credit scores, 29–31, 43; and discretionary pricing, 239–249; and Hispanics, 212; and legal violations, 242; and refinancing, 243–244; and secondary market, 112, 117, 234, 296; and securitization, 260, 261; attempts to reset, 183; renegotiation of loans, 106, 292; requirements, 57, 58 See adjustable rate mortgage (ARM); subprime lending Moving to Opportunity (MTO), 250, 256, 258–259 Mozilo, Angelo, 296 Murray, Peter, 283–284 Myrdal, Gunnar, 252 N Nashville, Tennessee, 6, 109 National Association for the Advancement of Colored People (NAACP), 42, 133f5, 254–255, 259; Legal Defense and Education Fund, 127, 260 National Association of Home Builders (NAHB), 37, 68 National Association of Manufacturers (NAM), 308, 311 National Association of Realtors, 2, 35, 37 National Community Reinvestment Coalition (NCRC), 2, 41–42, 246; analysis of FHA loans, 49; attacks on, 312; collaboration with FHA, 44, 45; and fair pricing, 52, 53; investigation by, 44, 45, 46, 47 National Council of La Raza (NCLR), 42, 133f5, 210, 212, 217, 218 National Fair Housing Alliance (NFHA), 2, 3, 4, 25, 127, 130, 131, 133f5, 214; and foreclosed properties, 244; and REO maintenance practices, 137–149, 151–152, 156; and suit against Wells Fargo, 149–150 National Farm Worker Association (NFWA), 283 National Foreclosure Mitigation Counseling (NFMC), 71, 72 National Labor Relations Act, 280 National Low Income Housing Coalition, 42 National People’s Action (NPA), 2, 161, 167, 170, 171, 191, 278, 279–280, 291; attacks on, 312; creation of, 166; fortieth convention, 167 National Rainbow Coalition, 175 National Training and Information Center, National Urban League et al v Office of the Comptroller of the Currency et al., 27 Neighborhood Stabilization Program, 72, 154 NeighborWorks, 71 neoliberalism, 162, 271 New Bottom Line, 6, 178, 185, 291–292 New Deal, 174, 270, 294, 300, 315, 316 New Jim Crow, The (Alexander), 268 New York City Metropolitan Transportation Authority (MTA), 187 New York Times, and Occupy Wall Street, 13; and foreclosure crisis, 290 New York, New York, 4, 5, 191, 209 Newby, Anthony, 108, 109 Niagara Movement, 174 Norquist, Grover, 299, 314 North Carolina, 60 Norton, Michael, 65–66 O Oakland, California, 6, 143fig, 144–145, 145fig, 187, 188; and ACCE, 201; and Wells Fargo, 244 Obama, Barack, 73; and percent, 313; and Elizabeth Warren, 287; and FHA solvency, 43; and mortgage lending practices, Occupational Safety and Health Act, 303 Occupy Atlanta, 109 Occupy Bank Group, Occupy Harlem, Occupy Homes MN, 108, 199fig Occupy Los Angeles, 108 Occupy Nashville, 109 Occupy Oakland, Occupy Our Homes, 6, 106, 107, 125, 126, 127, 184, 198–199, 199fig; evolution of, 109 Occupy the Dream, Occupy the Hood, Occupy the SEC, Occupy Wall Street (OWS), 1–14, 53, 41, 42, 105–127, 267, 291, 312, 313; and immigration issues, 222; and economic inequalities, 247; and fair housing movement, 125–126; and foreclosures, 129; goals of, 38, 41; lessons of, 172; as reflection, 21; and wealth disparities, 25 Organizing for Action, 318 P Pacific Legal Foundation, 294 Packer, George, 108 Paine, Thomas, 276 Partnership for New York City, 194 Paschal v Flagstar Bank, 236–237 Paschal, Tony, 117 Patriot Act, 316 payday loans, 28, 30, 189, 190, 191–192, 194 Paying More for the American Dream VI—Racial Disparities in FHA/VA Lending, 52 Pennsylvania, 106, 191; and litigation against Wells Fargo, 122–123 Perez, Tom, 3–4, 124 Perlstein, Rick, 293 Pettigrew, Thomas, 262 Pew Research Center, 101, 113; and effect of foreclosure crisis, 133; and wealth distribution, 7, 23, 177, 313 Philadelphia, Pennsylvania, 188, 189, 244 Pickett, Kate, 263 PICO National Network, attacks on, 312 Pinto, Edward, 60 PolicyLink, 142, 210–211 populism, 269 Portland, Oregon, 200 Poverty & Race Research Action Council (PRRAC), 110 Powell Memo, 163, 174, 294 powell, john a., 11, 164, 249 Powell, Lewis F., 163, 293 predatory lending, 24, 85, 87, 156, 202, 214, 297; consequences of, 309; and consumer debt, 192; continuing, 186; impact of, 198; interest rates, 191–192; laws against, 287; strategies to address, 310–311; targeting of, 50fig, 113, 129, 239, 261 Prince George’s County, Maryland, 141–142 Prince William County, Virginia, 213 Progressive Politics: The Strategic Importance of Race (powell), 164 Prosperity Economics: Building an Economy for All, 303 Proxmire, William, 296 Public Accountability Initiative, 191 Public Religion Research Institute, 312 Q qualified residential mortgage (QRM), 32, 33–34, 35, 36; and down payment, 35–36; exemption, 36–37 R racism, 215; and hypersegregation, 110; steering, 140; structural, 109, 171, 253–254 Ramirez, Luis, 223 real estate industry, and investor purchases, 144; and maintenance of REO properties, 140–149; responsibilities of, 135–137; real estate owned (REO), 129–156, 214 RealtyTrac, 137, 177 redlining, 114, 261, 279, 296; and federal law, 2; consequences of, 27, 31; and FHA cases, 233, 245; institutionalization of, 26; replacement of, 129; reverse, 2, 113, 114, 114f7, 115, 119, 120, 121, 122, 238–239, 242; strategies to address, 311; tradition of, refinancing See mortgage lending ReFund Transit Coalition, 187, 201 Reid, Harry, 287 Relman, John P., 10, 105 ReNew MN, 172 Republican Party, 174, 175, 315; assault by, 278; and consumer protection, 295 Residential Mortgage-Backed Securities Working Group, Rice, Lisa, 10, 21 Richmond, California, 143fig Right to the City Alliance, Romney, Mitt, 56, 313 Roosevelt, Franklin D., 174, 269–270, 300 Roubini, Nouriel, 57 Roy, Arundhati, 284–285 Rugh, Jacob, 260 Russia, 59 S San Bernardino County, California, 181, 185 San Diego, California, San Francisco, California, 181, 188–189, 209 Santelli, Rick, 290–191 Saudi Arabia, 59 Scaife Foundation, 294 Schneiderman, Eric, 291 Schoeni, Robert, 95 schools, access to, 25, 28, 64, 260 Schwartz, Gary, 230, 231 Schwemm, Robert G., 4, 11, 229 Scranton, Pennsylvania, 186 Securities and Exchange Commission (SEC), 3, 9, 260 Securities Industry and Financial Markets Association, 186 Segregation and the Making of the Underclass (Massey, Denton), 110 Sen, Amartya, 253, 263 Sermons, M William, 10, 83 Service Employees International Union (SEIU), 200fig, 291, 307; Local 1021, 187, 188 Shaull, Richard, 272, 274 Shelly v Kraemer, 254 Silva, Luiz Inácio Lula da, 274 Simon, William, 294 Sinclair, Upton, 270 Skocpol, Theda, 299 Smith Richardson Foundation, 294 Smith, Adam, 56 Smith, Hendrick, 72 Smith, Shanna L., 10, 129 Social Security, 95, 267, 303, 316 South Carolina, 210 Southern Burlington County N.A.A.C.P v Mount Laurel Township, 257 Southern Christian Leadership Conference (SCLC), 278, 279 Southern Poverty Law Center, 212, 215 Southsiders Organized for Unity and Liberation (SOUL), 201 Spirit Level: Why Greater Equality Makes Society Stronger (Wilkinson, Pickett), 263 Squires, Gregory D., 1, 161 St Bernard Parish, Louisiana, 110 Stafford, Frank, 95 Standard & Poor’s, 296, 311 Steele, James, 63 Steinhafel, Gregg, 196 Stevens, David, 43, 51 Stiglitz, Joseph, 8, 65, 71, 292f2 Student Nonviolent Coordinating Committee (“Snick”), 277, 278, 279, 281–282 Stumpf, John, 194, 195fig, 196 subprime lending, 4, 37, 58–61, 73; Baltimore, Maryland, 111–124; and bundling, 250; and default rate, 29, 32; and deregulation, 296–297; and foreclosures, 85; and Hispanics, 214; and hybrid ARMs, 86–88; Memphis, Tennessee, 111–124; proliferation of, 238; and refinancing, 55; and securitization, 236; warnings against, 297; and whistleblowers, 192 See also predatory lending suburbs, 254; and city-suburb divide, 262, 263; and foreclosure crisis, 296; and political bridges, 316; and predatory lending, 24 Sugarman, Stephen, 230, 231, 232 Sugrue, Thomas J., 9–10 Summers, Larry, 290 Supplemental Nutrition Assistance Program, 70 Supreme Court, US, and pleading rules, 245–246; Arlington Heights v Metropolitan Housing Corp., 257; Brown v Board of Education, 255; Shelley v Kraemer, 2; Thompson v HUD, 259; Wal-Mart Stores, Inc v Dukes, 239–240 Survey of Consumer Finances (SCF), 69, 88, 89fig, 95, 98, 101 Sydnor, Eugene B., 163 T Taibbi, Mark, 193 Take Back the Land, Taylor, Paul 64 Tea Party, 278, 291, 295, 315 Tegeler, Philip, 110 testers, 220–221, 234 Thigpenn, Anthony, 174 Thomas, Camille, 118 Thompson v HUD, 258, 259–260, 264 Thrift Supervision, Office of (OTS), 45, 61 Tilly, Charles, 253 Torres, Gerald, 253 Townsend movement, 270 Trapp, Shel, 166 Troubled Assets Relief Program (TARP), 70 U U.S Bancorp, 244 U.S Bank, and payday loans, 191, 192 unemployment, 62–63, 93fig; disparities in, 22; extension of benefits, 70; and Hispanics, 212; rate of, 71, 85, 88; reduction of, 290; sustained, 155, 177, 190 Unger, Roberto, 263 United Automobile Workers, 281 United Farm Workers of America, 283 United Food and Commercial Workers International Union (UFCW), 307 V Vanden Heuvel, Katrina, 301 Varela, Juan, 212–213 Veterans Administration (VA), and mortgage loans, 26, 58, 296 Veterans Affairs (VA), 46, 49, 52 Voitchovsky, Sarah, 66 Volcker, Paul, Volcker Rule, 9, 57 W Wachovia, 69, 197fig Wallison, Peter, 60 Wal-Mart Stores, Inc v Dukes, 239–240 War on Poverty, 280 Warren, Elizabeth, 63, 287–288 Washington Lawyers’ Committee for Civil Rights and Urban Affairs, 221 Washington Mutual, Inc., 69, 197fig Washington v Davis, 257 Washington, DC, 108, 140–141; and credit card rate cap, 191; and language, 222; and Wells Fargo, 244 wealth, 183, 268; distribution, 6, 8, 12, 105, 178; access to credit, 45; building of, 164; communities of color, 260–261; disparities in, 21, 23, 25, 33, 37, 73–74, 253; and increased concentration, 267; loss of net, 83–102, 133–134 Wealth for the Common Good, Wells Fargo & Company, 3, 24, 106–107, 191, 197fig, 215, 231, 289; complaints against, 130; and discretionary pricing, 240–241; lawsuits against, 149–150, 239; and litigation, 109–111; and Occupy Oakland, 5–6; and payday loans, 191, 192; and political ties, 194; and REO properties, 244 West, Cornel, 109 Westchester County, New York, 110 Weyrich, Paul, 294 Wilkinson, Richard, 263 Woodstock Institute, 246 Z Zandi, Mark, 37, 292f2 Zillow, 48, 177, 185; price index, 84fig Zinn, Howard, zoning, exclusionary, 257; as tool against immigrants, 213–214 Zuccotti Park, New York City, 5, 11, 41, 105 ... habits, but rather a function of the types of credit to which they have access and the terms and conditions of the loans available to them Unfortunately, the credit scoring models used to assess... Corporation, the Office of Thrift Supervision, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau to investigate and end these discriminatory practices... program, but they also restricted the availability of credit and the ability of the economy to recover Ultimately, the policies were in contradiction of the purpose and intent of the FHA loan