Signs of Redlining Back in Metro Atlanta?

David Pendered (Saporta Report) recently wrote that, “Signs of the discriminatory lending practice called redlining have reemerged in metro Atlanta, according to a new analysis of home sale prices.”

Pendered cites a study by Georgia Tech Professor Dan Immergluck, where Immergluck quantifies the in his report an uneven rebound of housing prices in metro Atlanta. It’s part of his research into issues including housing and real estate markets, mortgage finance, and fair lending. His most recent book was reissued in 2011: “Foreclosed: High-Risk Lending, Deregulation, and the Undermining of America’s Mortgage Market.”

According to the report, the areas where home prices have rebounded most and best are in predominately white and comparatively affluent neighborhoods. The affluent neighborhoods aren’t dependent upon mortgage markets, as most markets of $800,000 and more have always faired fine, and always will regardless of regulations.

Prices should have come back more evenly,” Immergluck said. “The demographics of the city are not that different from 2001. We shouldn’t have half as many mortgages [in some demographics] as we did then. That’s what is keeping the prices down in these neighborhoods.

So what’s the issue causing this unevenness?

Immergluck believes that it is the process of redlining based on a concern over credit quality. Whites historically have better credit scores than non-whites (for a slew of reasons we will discuss in another post). So recovery for whites has been greater than non-whites, and as a result there have been less home loans extended to non-whites.

Pendered wrote that, “In addition to determining the uneven nature of price recovery, the report confirmed that the greatest collapse in home prices occurred in predominately non-white areas – especially in some communities where speculators bought homes and flipped them for significant profits. Mortgage fraud was rampant in some of these areas.

To learn more about redlining and this report, read here

Saporta Report.

Copyright 2014. Natasha Foreman Bryant. The Paradigm Life. All Rights Reserved.

Eritrean Independence Day Celebration

By Natasha L. Foreman, MBA

On May 21st there will be an Eritrean Independence Day Celebration at the Global Mall in Atlanta Georgia, conveniently located near Spaghetti Junction off Interstate 85 on Jimmy Carter Boulevard. I’m sure this will be a celebration to remember!

Copyright 2011. Natasha L. Foreman. Paradigm Life

Registration Extended Until May 7th for GGA Women’s Kickball League

Thanks to E Period, LLC I am able to share with the ladies of Metro Atlanta that registration has been extended until May 7th for the GGA Women’s Kickball League. Games begin June 5th with a maximum 20 members per team (uniform not included)

Actual Registration: $75/person (uniform not included)

Umpire Fee
League membership
Membership ID badge
Pink Unity Camp (unity t-shirt)
Kicks & Cocktails!!

Copyright 2011. Natasha L. Foreman