- Where are we today?
- Are regulations leading to permanent recovery?
- What to look for in the future.
Four Key Topics:
1 History of OTR
2 Current state of OTR
3 For OTR’s Redevelopment
4 Against OTR’s Redevelopment
Group Synthesis Statement
The federal government housing policies that were created in 1933 pushed mandated segregation by refusing to insure mortgages in minority and poor neighborhoods. These policies would mark neighborhoods in red (redlining) that were considered to be high-risk for mortgage lenders. This made it extremely difficult for these families to take out loans on a house, making it difficult to begin an accumulation of wealth. Although this practice was eventually outlawed in 1968, some banks kept the system in place by utilizing different tactics targeting minority groups, such as offering predatory loans and by redlining retail, the cycle of geographic poverty was already in place and hard for these groups to remove themselves from. This has caused a racial wealth disparity, which only widened after the recession as African Americans were hit especially hard. These housing policies have had a lasting affect on our society today as segregation in metropolitan areas still exist and have lead to stagnant inequality in the public housing and school systems. Lacking a good educational foundation and a means of leaving to pursue higher education, the intergenerational poverty that disproportionately affects minorities continues, even 10 years after the recession hit this population the hardest.
Overall, we found that the widespread proliferation of subprime and predatory loans, failings of various forms of oversight and transparency, and a lack of individual responsibility all contributed to the creation of the housing bubble and the scale of the market crash.
Katy Koetting, Samantha Wells, Leah Bailey, Katie Morrin, Gaby Vinales