Denying loans to poor people is normal underwriting, you're *supposed* to decide whether to give them a loan based on their income and credit history Redlining means throwing out applications before you even look at the numbers because the address is in a "Black neighborhood"https://twitter.com/michaelharriot/status/1227846159319867393 …
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Denying loans to people because you don't think they have the money to pay them back is the normal way loans work You may not like that, but "redlining" is a completely separate issue from that, and both the class-first left and the pro-redlining right love muddling this issue
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You end up with people talking like you can't ban redlining without going to Full Socialism Now, like denying a mortgage because someone doesn't have a steady job is exactly the same thing as throwing out all the applications that come from Harlem It's really obnoxious
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It's like the argument from Jacobin that you can't have reparations for chattel slavery because ALL labor under capitalism is slavery so if you give reparations only to descendants of chattel slaves you're defending the general oppressive framework of capitalism
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Anyway it's precisely this conflation that led to people saying anti-redlining measures led to the housing bubble that popped in 2009 Like people were really asking for underwriting to go away completely rather than everyone being evaluated by the same rules
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They play this game a LOT Black people ask "Can we just be judged by the same rules as white people" "What's that? You want there to be NO RULES? You want us to just give away everything for FREE? You want chaos in the streets?"
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Anyway, the 2009 foreclosure crisis was caused by underwriters approving a lot of loans that should simply never have been offered and this shouldn't be controversial on the left (if you want to give things to the poor you should give them not lend them)
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The majority of those mortgages were held by white people, and this whole thing was a completely separate issue from redlining and should not be spoken of as the same topic
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Replying to @arthur_affect
hmm... this is not entirely true. Reverse redlining was used to deliberately offer toxic loans to borrowers in redlined neighborhoods. Many toxic "designed to fail" mortgages were offered, but non- whites still had worse terms than whites, based on redlining...
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Replying to @AvatarKorra42 @arthur_affect
... the fact that those neighborhoods had _not_ been offered loans for so long made it easier for predatory lenders to target those demographics by not fully disclosing terms and by brokers lying to underwriters.
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I hear that but it's not the same thing as what Bloomberg is saying That's predatory loans coming into existence as a result of a general relaxation of underwriting standards within an existing framework of redlining It's not a movement to undo redlining
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Replying to @arthur_affect
I agree that Bloomberg is full of shit. But the history of redlining, as well as direct credit discrimination, is absolutely relevant to the foreclosure crisis, and caused black families to lose substantially more wealth than white families.
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