First, read the article that is in your reader, then, listen to the following podcast on “Reveal” about the disparities in mortgage lending. Once you have done the reading and listened to the podcast, respond to the questions and submit them via Canvas. The first two questions are about the reading, the remaining questions are based on the podcast and your own experiences.
Go to this link (Links to an external site.). Feel free to watch the video and explore all of the links (Links to an external site.) listed in the “Kept Out” box; be sure to listen to the podcast “The Red Line: Racial Disparities in Lending” and respond to the questions below. It is approximately 47 minutes long though there are several one minute breaks along the way.
- According to this week’s reading on Canvas, what is a “racially restrictive covenant”?
- According to this week’s reading on Canvas, what was the Home Owner’s Loan Corporation and what was its purpose?
- According to the podcast, what is the Community Reinvestment Act?
- Rachelle Faroul is one of the people this story follows. Summarize her story. Be sure to describe her experiences fully making sure to include information the researchers found when they did some of their own investigating into her case.
- The reporters go to the “data cave” of Emmanuel Martinez. What did he find about the likelihood of a black applicant being denied a conventional home loan mortgage versus a white applicant?
- What does this story claim is the median net worth of white families versus black families? What do you suppose some of the implications of this disparity are? In other words, why does this matter?
- Laura and Megan have a similar story to Rachelle’s in terms of the type of home they were looking to buy, but a completely different story from Rachelle in terms of applying for a loan. Summarize some of the differences.
- If you ever apply for a loan or any type of credit, you will want to have a good credit score. What helped bring the credit score into existence?
- What did the reporter, Aaron Glantz, find when he went into the JP Morgan Chase “branch” in Philadelphia? Why doesn’t this location take deposits?
- What did you learn about bank security? Be sure to include Thomas Curry in your response.
- What is happening now in Philadelphia as an unintended consequence of the Community Reinvestment Act? Be sure to include Ori Feinbush, Adrian Stokes and Arlene Waynes-Thomas in your answer. Are you seeing any of these unintended consequences in your own neighborhood? If so, how? If none exist in your neighborhood, do a little searching around in neighborhoods that have (some ideas are: Barrio Logan, South Park, and East Village).