Pittsburgh

Report: African Americans received only 3.5% of all bank home loans from ’07-’19 – Pittsburgh, Pennsylvania

Pittsburgh, Pennsylvania 2021-09-16 10:55:18 –

Pittsburgh City Councilor R. Daniel Ravel: “For now, if you’re white and decide to move to a black community, it’s very bad that you’re more likely to get a mortgage than if you’re a black person living in a black community. “

Private Bank Virtually Ignoring Pittsburgh’s Black District

Recent studies show that Reverend Ricky Burgess and R. Daniel Ravel of Pittsburgh Black Councilors have an illness in their stomachs, as Pittsburgh blacks receive little or no help from the private banking community.

The report, “Inherited Inequality; Financing Status for Affordable Housing in Pittsburgh,” completed in partnership with Carnegie Mellon University, is a private city between 2007 and 2019. We found that only 3.5% of our $ 11.8 billion bank mortgages went to African Americans. And of that $ 11.8 billion, only 6.8% went to so-called “minority district” housing.

The report, released on September 9, also said that when it comes to financial investment to improve suburbs, private banks had field days to invest primarily in white areas like Shadyside, while public. It also revealed that government funding encouraged investment in black neighborhoods.

“After taking the opportunity to read this report, it is very clear that banks and their lending partners and regulators have fully monitored investment cuts in blacks and, more importantly, the black community over the past decade. “It’s now,” said Ravel, who was upset at a press conference in downtown on September 9.

Rev. Burgess said the groundbreaking study proves that “greedy businesses and financial institutions are literally starving the African-American community in Pittsburgh.”

Pittsburgh City Councilor REV. RICKY BURGESS I’m confused by the latest report that Blacks received only 3.5% of all Pittsburgh private bank mortgages between 2007 and 2019.

From 2007 to 2019, a total of 906 financial institutions provided mortgages, of which 551 did not approve loans to African Americans, according to a survey. However, they provided 1,974 mortgages to whites for $ 384 million.

“Their practices are the result of continuous redlining,” said Rev. Burgess. “Their practices are discriminatory and racist in nature.”

“That’s shameful,” added city councilman Ravel. “For now, if you’re white and decide to move to a black community, it’s very bad that you’re more likely to get a mortgage than if you’re a black person living in a black community. “

In context, Asian Americans, like African Americans, received only 3.5 percent of the city’s mortgages. However, Asian Americans make up 5.7% of the city’s population, and blacks make up 23.7% of the population. The disproportionate number of mortgages for all blacks in the city is stunning.

In terms of average loan approvals, whites had almost twice the advantage over blacks ($ 142,818 vs. $ 81,553).

The report praised Dollar Bank and PNC Bank as the top two banks to provide mortgages to African Americans in the 13 years the report surveyed. Dollar Bank has approved a $ 45.9 million mortgage and PNC Bank has approved $ 29.9 million.

“These home banks have come up with ways to connect with African-American borrowers,” the report read.

Nationally, only 44% of African Americans are homeowners, compared to nearly 75% of Caucasians. And since homes are usually valued, owning a home is the key to building wealth. According to the Federal Housing Finance Agency’s Home Price Index, mortgage website reports show that home prices have risen by an average of 3.6% each year since 1991. The site also points out that the monthly price of rental housing can rise over time. , Monthly mortgages usually remain constant, allowing homeowners to earn extra income for savings and other expenses rather than homes. And when a mortgage is paid in full, homeowners often own assets worth hundreds of thousands of dollars. That’s why homeowners’ net worth is on average 80 times higher than lessors, according to the US Census Bureau. It also explains why it is essential to have more access to home ownership to help African Americans establish and build wealth for generations.

The report also detailed how few private banks are investing in the black district of Pittsburgh in terms of housing. Of the $ 11.8 billion mortgage loan from 2007 to 2019, 93% ($ 11 billion) was spent in 54 neighbors of Pittsburgh, which was classified as non-minority.

For example, in the non-minority district of Shadyside, private banks received more private bank investment ($ 1.054 billion) than the combined 17 total ($ 807 million) in Pittsburgh’s minority districts. ..

Shadyside is in Council District 8 with Squirrel Hill. Together, the private bank has approved a mortgage of approximately $ 2.8 billion in the district. District 7, including Highland Park and Lawrence Building, received $ 2.3 billion in private investment. But, of course, according to the authors of the report, the two cities with black councilors and the most black residents had the least amount of private investment (Pastor Burgess, District 9, East Liberty). , Homewood, Lincoln-Larimar-$ 451.7) Million, Ravel, District 6, Hill District, Manchester-$ 770.5 million).

But when it comes to public investment, it’s a different story. The main sources of public funding for the city for housing are the Pennsylvania Housing Finance Agency, the Pittsburgh Housing Authority, and the Urban Redevelopment Authority. According to the report, a total of approximately $ 3.4 billion was approved by three public authorities between 2010 and 2020. From that $ 3.4 billion, $ 1 billion was invested in 17 Pittsburgh minority communities. That’s nearly $ 200 million more than the amount private banks invested in these communities between 2007 and 2019 ($ 807 million). The council districts of Rev. Ravel and Rev. Burgess led with dollars of public funds invested ($ 655 and $ 593 million, respectively).

Proper participation from parents and the Lower Marshall Shadeland Development Initiative against violence was also provided, and the report states that it is a myth that “affordable housing” is funded primarily by public means. Stated. In Pittsburgh for the past 13 years, private banks have invested three times as much housing as public institutions, according to the report, but private investment cannot be expected for African-American and African-American neighbors. ..

At this rate, “Of course, it would gentrify the black community,” said Rev. Burgess. “It starves them resources, and when they are ready to buy, they will lend money to white organizations and white businesses to gentrify the black community. To our job. Nonetheless, there is no hope for Pittsburgh’s African-American community unless there are significant changes in financial institutions’ lending practices. “

Report: African Americans received only 3.5% of all bank home loans from ’07-’19 Source link Report: African Americans received only 3.5% of all bank home loans from ’07-’19

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