“Some neighborhoods will live, and some will die, to be born again as gentrified communities.”
A new study of bank lending practices in Baltimore shows that whites get twice the number of mortgage loans as Blacks do, even though Blacks outnumber whites two to one in the city. Baltimore is 64 percent Black, with a quarter of its population living below the poverty line. However, the study found that the banks continue to issue mortgages in some low income neighborhoods – the ones where white people live. Yes, Baltimore still has some poor neighborhoods where whites are the majority, and if you live in one of them, you are far more likely to get a mortgage from the bank. But, if you live in a neighborhood that’s 80 percent Black or more, your chances for a mortgage are a much slimmer.
So, what are the Lords of Capital really up to? The data shows that the banks are willing to put money into low-income neighborhoods that still have large white populations, but will do nothing to stabilize low-income communities where Blacks predominate. The implications are quite clear, but the National Community Reinvestment Coalition, which seeks to draw public and private investment into the cities, and which commissioned the study, doesn’t seem to get it. They issued a statement, warning that failure to provide credit to prospective inner city homeowners will cause their neighborhoods to “continue to deteriorate” – as if the banks don’t know that!
“They know exactly what they are doing.”
The bankers are perfectly aware of the consequences of their lending policies. Some neighborhoods will live, and some will die, to be born again as gentrified communities valued at many times the previous worth of the land and buildings. When Black neighborhoods are killed, the banks make a killing. The banks have other plans for Baltimore’s remaining white low income neighborhoods. White folks always get different treatment; that’s part of the privilege.