In the 1852, when Wells Fargo was founded, the chance the bank would loan money to Blacks was slim to none. Times haven’t changed much.

A critical factor in the lack of economic growth in the Black community is the continued discrimination by banks. Blacks, often regardless of their income or credit history, are denied home and small business loans – that’s called redlining. What’s worse is that those who are approved for funding are often victims of predatory loans – where the interest rate is so high and the terms so tough that borrowers are put at risk of losing their property altogether.

According to the Atlanta Journal-Constitution, a 1988 study of home purchase and home improvement practices of local banks and savings and loan institutions proved: "Not only do the financial institutions shun low-income minority neighborhoods; they neglect affluent Black areas. Whites receive five times as many home loans as Blacks of the same income." The report was published nearly 20 years ago, yet the racism continues. Not just in Atlanta, but all over the United States – and right here in Bayview Hunters Point.

Some of you may believe that loan discrimination has more to do with income than race –wishful thinking. But the statistics don’t lie. A statement from the California Reinvestment Coalition report published just last year in a Bay View article titled "California banks bilk Black and Brown borrowers" revealed: "Upper-income African American and upper-income Latino borrowers were more likely to be rejected for less expensive bank loans than white borrowers who had lower incomes. At the same time, upper-income African Americans and Latinos were 3.9 times and 3.3 times as likely to get higher cost sub-prime loans as whites with the same income."

Redlining is not limited to loans but also denies insurance and employment opportunities to communities of color. Studies show that one of every two Black homeowners encounters discrimination in insurance premiums and interest rates. It is not surprising when a Black business owner faces racial discrimination. The truth is, by denying Black businesses loans, the banks play a major part in the gentrification of the Black community.

Redlining accelerates the flight of full-service banks, food stores, restaurants and other shopping centers from Black neighborhoods. It also contributes to the flight of Black residents from their own communities. As if it was not enough to be denied quality educational and employment resources, even healthy foods, we are being completely locked out of any kind of financial stability.

Large lenders like Washington Mutual, Wells Fargo and CitiGroup are notorious for practicing unethical policies. Washington Mutual, with its "free" checking, has high overdraft fees and hidden costs. Wells Fargo routinely denies loans to Black homeowners and businesses. Those who are not rejected are very often given extremely high interests rates.

Together with Responsible Wealth, a national network of affluent citizens who are concerned about deepening economic inequality, ACORN launched a major campaign against Wells Fargo four years ago. The fight is still on. The bank has changed certain lending policies but continues to be a leader in predatory lending practices.

"Analysis of Wells Fargo’s Home Mortgage Disclosure Act report reveals that African Americans and Latinos were 3.9 times and 1.7 times more likely than whites to receive high-cost loans, respectively," ACORN reports.

One representative told me in a phone conversation that in an experiment where a Black man and a white man each applied for home loans at Wells Fargo, the numbers were "ridiculous." The men had the same income and the same credit score, yet the Black man was given a loan that had an interest rate seven times higher than that of the white man’s.

How you can help

In response to these very alarming racial disparities, borrowers and shareholders are holding a meeting with the Board of Wells Fargo to push for a resolution. Meanwhile, ACORN will be picketing outside of that private meeting to show Wells Fargo that the public is very much involved in the fight against their unfair policies and practices. The meeting and protest will be held at the Renaissance Stanford Court Hotel, 905 California St., in San Francisco, Tuesday, April 25, at 12:30 p.m. Everyone is welcome to come out and show their support.

Two predatory lending bills are going to be considered soon by the House of Representatives with important consequences for all Americans. The Prohibit Predatory Lending Act, HR 1182, would strengthen the protections against predatory lenders. Write or call members of Congress, especially California Sens. Dianne Feinstein and Barbara Boxer, and ask them: "Support the Miller-Watt bill and clamp down on predatory lending. Oppose the Ney bill, which does nothing but give a free pass to predatory lenders."

Dianne Feinstein can be reached at: The Honorable Dianne Feinstein, United States Senate, 1 Hart Senate Office Building, Washington, D.C. 20510-0504. Call her at (202) 224-3841 or (415) 393-0707, or email her at http://feinstein.senate.gov/email.html.

Barbara Boxer’s address is: The Honorable Barbara Boxer, United States Senate, 112 Hart Senate Office Building, Washington, D.C. 20510-0505. Call her at (202) 224-3553 or (415) 403-0100, or email her at http://boxer.senate.gov/contact/email/policy.cfm.

For more information on how you can get involved in the fight against Wells Fargo and other predators, visit www.acorn.org. For a complete listing of Congress members, visit www.visi.com/juan/congress/. Email Ebony at ebonywrites@sfbayview.com.

http://www.sfbayview.com/041906/redlining041906.shtml