9:59:59.000,9:59:59.000 Decades of housing discrimination have [br]helped create an enormous wealth gap 9:59:59.000,9:59:59.000 between white and black families. 9:59:59.000,9:59:59.000 - The enduring legacy of red-lining, the [br]legal government sponsored effort to 9:59:59.000,9:59:59.000 deny mortgages and home ownership [br]opportunities to African-Americans and 9:59:59.000,9:59:59.000 other minorities continues to undermine [br]their quality of life. This violation of 9:59:59.000,9:59:59.000 basic civil rights continues to negatively [br]impact education attainment, health 9:59:59.000,9:59:59.000 outcomes, wealth accumulation,[br]self-esteem, mortality rates, and 9:59:59.000,9:59:59.000 civic engagement. 9:59:59.000,9:59:59.000 - Home ownership has proved to both the [br]doorway and gatekeeper to success and 9:59:59.000,9:59:59.000 well-being in America. It is at the [br]core of todays racial wealth gap. 9:59:59.000,9:59:59.000 - There's a very powerful myth in this[br]country, and that is that residential 9:59:59.000,9:59:59.000 segregation in this country is something [br]we call de-facto segregation. 9:59:59.000,9:59:59.000 Something to happen by accident. 9:59:59.000,9:59:59.000 Every textbook that's used in American [br]high schools and middle schools today 9:59:59.000,9:59:59.000 lies about this history. [br]It talks about how 9:59:59.000,9:59:59.000 northern cities were de facto segregated,[br]without government involvement. 9:59:59.000,9:59:59.000 They talk about how the Federal Housing [br]Administration, did a wonderful job of 9:59:59.000,9:59:59.000 creating single family homes in the [br]suburbs for working class families 9:59:59.000,9:59:59.000 without mentioning that the working [br]class families they had created these 9:59:59.000,9:59:59.000 homes for, could only be white. 9:59:59.000,9:59:59.000 - This began a history of excluding people[br]of color from government housing programs. 9:59:59.000,9:59:59.000 Intended to lower the cost of mortgages[br]and increase home ownership. 9:59:59.000,9:59:59.000 Segregated neighborhoods [br]by race using a code system. 9:59:59.000,9:59:59.000 Outlined minority neighborhoods[br]using the color red. 9:59:59.000,9:59:59.000 Intended to expand the secondary [br]mortgage market by securitizing 9:59:59.000,9:59:59.000 mortgage loans. 9:59:59.000,9:59:59.000 Community boards often denied [br]minority veterans mortgages. 9:59:59.000,9:59:59.000 Many minority vets could not be [br]buried in the same cemetery as 9:59:59.000,9:59:59.000 whites. 9:59:59.000,9:59:59.000 It wasn't until 1970 that lending to [br]communities of color began to 9:59:59.000,9:59:59.000 increase. 9:59:59.000,9:59:59.000 - The way this manifested itself is [br]through the drawing of maps. 9:59:59.000,9:59:59.000 Different neighborhoods were underwritten[br]as being riskier or safer and the 9:59:59.000,9:59:59.000 principle component that determined [br]riskiness or safety from a lending 9:59:59.000,9:59:59.000 standpoint was ethnic [br]and racial composition. 9:59:59.000,9:59:59.000 It was at that point that the real estate [br]developers began to drop strings 9:59:59.000,9:59:59.000 around areas. 9:59:59.000,9:59:59.000 The local banker could choose [br]who would get mortgages, where. 9:59:59.000,9:59:59.000 So that we could not have gotten [br]a loan out in the suburbs because 9:59:59.000,9:59:59.000 those were whites only. 9:59:59.000,9:59:59.000 The concept of a middle class black[br]only exists in the mind of a middle 9:59:59.000,9:59:59.000 class black. 9:59:59.000,9:59:59.000 Everywhere else in the suburbs [br]you are that nigger family on the 9:59:59.000,9:59:59.000 corner of Warren road [br]and Boulevard Way. 9:59:59.000,9:59:59.000 Well the truth is that we've had in this[br]country generations of affirmative action 9:59:59.000,9:59:59.000 for whites. 9:59:59.000,9:59:59.000 And the sad truth of it is that [br]whites don't know that that's 9:59:59.000,9:59:59.000 happened or they refuse to[br]accept it or don't understand 9:59:59.000,9:59:59.000 the history. 9:59:59.000,9:59:59.000 And what that leads to is this false[br]kind-of narrative that "I did it myself". 9:59:59.000,9:59:59.000 You know this, racial (inaudible), [br]individual responsibility narrative. 9:59:59.000,9:59:59.000 - They were many federal, state, [br]and local policies explicitly racial 9:59:59.000,9:59:59.000 designed to create segregation in [br]every Metropolitan area in the 9:59:59.000,9:59:59.000 country. And policies that were so[br]powerful that they still determine 9:59:59.000,9:59:59.000 the racial boundaries of [br]Metropolitan areas today. 9:59:59.000,9:59:59.000 The Federal Housing Administration began [br]a program to suburbanize the entire white 9:59:59.000,9:59:59.000 working class population [br]into single family homes. 9:59:59.000,9:59:59.000 - This is Levittown, Pennsylvania. [br]A new suburban community of 9:59:59.000,9:59:59.000 sixty thousand people with its [br]giant shopping center, winding 9:59:59.000,9:59:59.000 lanes named for flowers and [br]trees. It is (inaudible) typical of 9:59:59.000,9:59:59.000 communities all over America. 9:59:59.000,9:59:59.000 Where families are pursuing the American[br]dream to give their children a better 9:59:59.000,9:59:59.000 chance in life. 9:59:59.000,9:59:59.000 Nearly all are young people. 9:59:59.000,9:59:59.000 A large proportion are veterans. [br]For many it is the first house of 9:59:59.000,9:59:59.000 their own and it represents a [br]major financial investment. 9:59:59.000,9:59:59.000 - In August 1957, Levittown,[br]Pennsylvania attracted 9:59:59.000,9:59:59.000 international attention as William Myers [br]Jr. and his family moved into the three 9:59:59.000,9:59:59.000 bedroom house. They are very close [br]to the Levittown norm. Except in one 9:59:59.000,9:59:59.000 respect. 9:59:59.000,9:59:59.000 William Myers Jr. and his family are [br]negroes in an all-white community. 9:59:59.000,9:59:59.000 If more colored are allowed to move in,[br]Levittown is going to go downhill. 9:59:59.000,9:59:59.000 - The only way that those developers [br]could get the capital to do that was 9:59:59.000,9:59:59.000 by going to the Federal Housing [br]Administration. In order to get 9:59:59.000,9:59:59.000 that approval, they had to commit never[br]to sell a home to an African-American. 9:59:59.000,9:59:59.000 Access to leverage allowed middle-class [br]whites to build wealth. The white 9:59:59.000,9:59:59.000 families who bought those homes were able [br]to use their wealth to send children to 9:59:59.000,9:59:59.000 college. And they use that to bequeath [br]wealth to their children, who can use 9:59:59.000,9:59:59.000 it as down payments for their own homes. 9:59:59.000,9:59:59.000 Restrictive covenants ensured that [br]minorities could not buy into white 9:59:59.000,9:59:59.000 neighborhoods. 9:59:59.000,9:59:59.000 Properties shall continue to be [br]occupied by the same social 9:59:59.000,9:59:59.000 and racial classes. 9:59:59.000,9:59:59.000 - When Karen and I purchased this home that [br]was built in 1948 we found some documents 9:59:59.000,9:59:59.000 in a closet. 9:59:59.000,9:59:59.000 Neither the whole or any part of [br]said tract shall be sold, rented, 9:59:59.000,9:59:59.000 or leased to any persons or persons[br]not of white or caucasian race. 9:59:59.000,9:59:59.000 - Created greatest growth of the middle[br]class in the history of the world. 9:59:59.000,9:59:59.000 In 1940, 42 percent of white [br]families owned their own home. 9:59:59.000,9:59:59.000 In 2000, 71 percent of white[br]families owned their own home. 9:59:59.000,9:59:59.000 - So consequently those 71 percent, [br]72 percent of white home owners 9:59:59.000,9:59:59.000 who own their own home[br]should be thankful to the 9:59:59.000,9:59:59.000 federal government for providing [br]them this opportunity. 9:59:59.000,9:59:59.000 What did not happen or what [br]happened at the same time 9:59:59.000,9:59:59.000 was that we people of color where [br]discriminated against and were 9:59:59.000,9:59:59.000 prevented from taking advantage[br]of those opportunities. 9:59:59.000,9:59:59.000 - The recent housing and foreclosure[br]crisis were a continuation of a form 9:59:59.000,9:59:59.000 of red-lining. 9:59:59.000,9:59:59.000 Financial institutions practiced [br]unrealistic credit scoring and 9:59:59.000,9:59:59.000 predatory lending. 9:59:59.000,9:59:59.000 Subprime mortgages grew nearly 250 [br]percent. In 1998, subprime mortgages 9:59:59.000,9:59:59.000 made up 9.8 percent of the mortgage[br]market. By 2006, they made up 23.5 9:59:59.000,9:59:59.000 percent of the market. 9:59:59.000,9:59:59.000 - And the gap between white home ownership[br]rates and black home ownership rates is 9:59:59.000,9:59:59.000 30 percentage points larger than it was[br]back in 1968. In 1968 the typical black 9:59:59.000,9:59:59.000 family had one-sixth as much [br]wealth as the typical white family. 9:59:59.000,9:59:59.000 Now it is one-tenth. 9:59:59.000,9:59:59.000 We have gone backwards [br]since the civil rights era. 9:59:59.000,9:59:59.000 - Latinos lost close to a 170 billion[br]dollars worth of equity that they 9:59:59.000,9:59:59.000 had accumulated in the home [br]that they purchased many 9:59:59.000,9:59:59.000 many years before then. 9:59:59.000,9:59:59.000 - When they come to access products[br]the choices that they are given are 9:59:59.000,9:59:59.000 limited. 9:59:59.000,9:59:59.000 So you're given, instead of a [br]conventional loan, you're given 9:59:59.000,9:59:59.000 a special loan that have higher [br]interest rates or higher fees 9:59:59.000,9:59:59.000 that again set you up for [br]foreclosure or failure as well. 9:59:59.000,9:59:59.000 - The scandal of your tenure is your [br]unwillingness to do your job and 9:59:59.000,9:59:59.000 enforce the laws that reduce [br]housing discrimination. 9:59:59.000,9:59:59.000 - The housing crisis affected all [br]communities but disproportionally 9:59:59.000,9:59:59.000 devastated minority families. 9:59:59.000,9:59:59.000 Black and hispanic families lost[br]nearly 20 years of wealth between 9:59:59.000,9:59:59.000 2007 and 2013. 9:59:59.000,9:59:59.000 Minority home ownership is the [br]lowest it's been since 1996. 9:59:59.000,9:59:59.000 - Red-lining discrimination in the [br]Asian-American communities, live 9:59:59.000,9:59:59.000 and kicking. And in California,[br]you'll see that Asians have the 9:59:59.000,9:59:59.000 second highest probability[br]of going to foreclosure. 9:59:59.000,9:59:59.000 Very comparable to Latinos. [br]Latinos were 1.4, for Asians it 9:59:59.000,9:59:59.000 was 1.3. 9:59:59.000,9:59:59.000 And so whether it is in home [br]ownership, rental, small business, 9:59:59.000,9:59:59.000 foreclosure, across the [br]board there is red-lining. 9:59:59.000,9:59:59.000 - Between 1934 and 1962, 120 billion[br]in FHA and VA loans were issued. 9:59:59.000,9:59:59.000 Over that period of time, [br]98 percent of the loans 9:59:59.000,9:59:59.000 went to white families[br]and less than two 9:59:59.000,9:59:59.000 percent went to African-Americans [br]and other minorities. 9:59:59.000,9:59:59.000 Using the average Home Price Index[br]between 1934 through 2018, those 9:59:59.000,9:59:59.000 FHA, VA loans equates to at least [br]three trillion dollars in current 9:59:59.000,9:59:59.000 real estate value. 9:59:59.000,9:59:59.000 Assuming that as loans were paid off[br]and excess funds were invested in 9:59:59.000,9:59:59.000 stocks and other investments[br]conservatively, another two 9:59:59.000,9:59:59.000 trillion were created. 9:59:59.000,9:59:59.000 This "White Subsidy" is the major [br]contributor to the current racial 9:59:59.000,9:59:59.000 wealth gap. 9:59:59.000,9:59:59.000 - So many way Americans experience[br]this sense of self esteem, a sense of 9:59:59.000,9:59:59.000 you know superiority, if you will. 9:59:59.000,9:59:59.000 This sense of mastery, that they [br]have created their own destiny 9:59:59.000,9:59:59.000 in their lives. And they have no [br]acknowledgment of this invisible 9:59:59.000,9:59:59.000 hand that supported them throughout[br]their lives and not just them, but there's 9:59:59.000,9:59:59.000 a legacy of that invisible hand across [br]generations that has translated itself 9:59:59.000,9:59:59.000 from the original affirmative action[br]to trillions of dollars of head start 9:59:59.000,9:59:59.000 ahead of other communities, like [br]African-Americans, Latinos, Native 9:59:59.000,9:59:59.000 Americans, others who don't [br]have the same benefit. 9:59:59.000,9:59:59.000 Children of homeowners are more likely[br]to graduate from high school, have less 9:59:59.000,9:59:59.000 childhood behavioral problems[br]and achieve higher college 9:59:59.000,9:59:59.000 graduation rates. 9:59:59.000,9:59:59.000 - In segregated housing, and in [br]neighborhoods that everybody is 9:59:59.000,9:59:59.000 segregated that tend to be low[br]income neighborhoods. 9:59:59.000,9:59:59.000 There is the greater likelihood that [br]the youngsters will be involved in 9:59:59.000,9:59:59.000 gangs, or will be recruited [br]to be in gangs. 9:59:59.000,9:59:59.000 - I noticed an absence of hope, [br]an absence of light. These kids 9:59:59.000,9:59:59.000 were barraged with a message [br]every single day of their lives, 9:59:59.000,9:59:59.000 that they weren't valued, that they[br]didn't matter. And they internalized 9:59:59.000,9:59:59.000 that. And that caused frustration [br]and anger, and eventually despair 9:59:59.000,9:59:59.000 and a loss of hope. 9:59:59.000,9:59:59.000 There is now a very good science [br]that shows the sense of not 9:59:59.000,9:59:59.000 belonging, the sense of lacking [br]self-esteem raises cortisol levels 9:59:59.000,9:59:59.000 in your blood. And cortisol is good for [br]you when you're in an extremely 9:59:59.000,9:59:59.000 stressful situation, but when you're [br]constantly bathed in cortisol, 9:59:59.000,9:59:59.000 because you're constantly feeling these [br]stressors of being marginalized and 9:59:59.000,9:59:59.000 being told that you're less worthy, [br]less valuable and being in constant 9:59:59.000,9:59:59.000 state of really fear and anxiety,[br]it changes your physiology 9:59:59.000,9:59:59.000 completely. 9:59:59.000,9:59:59.000 It makes you more prone [br]to cardiovascular disease, 9:59:59.000,9:59:59.000 it makes you more prone [br]to diabetes, it makes 9:59:59.000,9:59:59.000 changes in your brain,[br]which actually makes it 9:59:59.000,9:59:59.000 more difficult to engage [br]in what we call executive 9:59:59.000,9:59:59.000 function. 9:59:59.000,9:59:59.000 This kind of chronic stress which is [br]driven by the policies that we've 9:59:59.000,9:59:59.000 created is lethal as any [br]knife or any gun. 9:59:59.000,9:59:59.000 - Suppose discrimination did end today? 9:59:59.000,9:59:59.000 How many generations would it take[br]to get to rough equality and wealth 9:59:59.000,9:59:59.000 across races. 9:59:59.000,9:59:59.000 France was seven generations, [br]more than 200 years.