A little noted report last month deserves a much closer review. It concludes that the subprime mortgage crisis is causing African-Americans to “experience the greatest loss of wealth in U.S. history.”
The report is from United for a Fair Economy and is called “Foreclosed–The State of the Dream 2008.”
According to the report, American blacks stand to lose some $213 billion because of the subprime crisis.
The report says that mortgage lenders have targeted the poor–in particular blacks–with high cost loans that they can’t afford.
Federal statistics quoted by the report appear to show that African-Americans are “more than three times more likely to have subprime loans.”
55% of blacks have high cost loans of different types compared with about 17 % of white homeowners.
The co-author of the report, Dedrick Muhammad, with the Institute for Policy Studies, in an interview, told “Democracy Now” that it is clear “that the subprime industry was focusing on the weak of our society and was trying to take advantage of people…”
Muhammad says that private companies are actually taking away “the little wealth that African Americans and Latinos have been able to develop over these last thirty, forty years.”