Sale of Federal Mortgages to Investors Puts Greater Burden on Blacks, Suit Says
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Joseph Washington, who took out a federally insured mortgage in 2011 to buy a home in Queens, said his loan has been sold to a private investor, who he believes is trying to force him out of his property.CreditDamon Winter/The New York Times
For years, the federal government avoided insuring mortgages in black neighborhoods, a practice known as redlining that exacerbated racial divides throughout America’s cities.
Redlining has long been outlawed, but in New York City, the federal government is again disproportionately hurting black homeowners, according to a federal lawsuit filed by a nonprofit that represents low-income New Yorkers. This time, the suit says, the government is fueling racial disparities not through its lending policies but in how it handles foreclosures…
Sale of Federal Mortgages to Investors Puts Greater Burden on Blacks, Suit Says
