Here are two important stories relevant to the black community that have to make all Americans think about the role of government – the first from the Virginian-Pilot shows that blacks are disproportionately denied conventional mortgages in Hampton Roads and the second is a story about the arrival of blacks in America 400 years ago being championed and commemorated.
Addressing the first, it’s important to note that that the study merely points out an alarming data point. Perhaps the most important and relevant observation comes from Robert Aston, CEO at TowneBank:
“We track all this stuff religiously,” he said. When the company notices outliers, it has physically looked through applicant files individually. “Rarely do we find anything that would suggest we should have made the loan.” And if they do, Aston said he sees it as a missed business opportunity.
He said denials are typically related to credit scores and income qualifications. As for denials based solely on race, Aston said he couldn’t imagine any commission-driven mortgage brokers passing on a loan that might earn them business.
“There’s obviously no economic advantage for anyone to do that,” he said.
It’s also not in any bank’s advantage since the institutions are being measured by regulators on their fair lending practices and risk their reputations and ability to get approvals to grow if they don’t measure up, he said.
“Frankly, banks are fighting over these applications,” he said. “Every bank’s under pressure to do these loans.
“We don’t take it lightly.”
What this report is saying is that the black community is being significantly underserved. The promises long made about improving education, business opportunity, home ownership, etc. through government largesse has proven to be completely false.
If the predominant reason loans are denied is based on credit risk – the ability to pay back a loan – then we are looking at an individual’s earnings. We’re looking at their job and their ability to maintain a job. And that employment opportunity comes from education, skills, and jobs being available.
How long have we been hearing Democrats deny school choice? Diminish vocational schools? Not support enterprise zones? Instead, the Democratic argument has largely been to rely on government subsistence and programs. That model has failed the black community.
This report should make blacks angry. But not the way I fear it might be construed.
This report is about racism – how blacks have been forced to live under government tyranny for far too long.
As we look to commemorate 400 years of blacks in America, perhaps it would be nice if our government recognized how it continues to deny them the American dream.