Predatory Lending in the 20th Century Essay

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The American DreamIntroductionHome ownership in America has long been associated with the American Dream, serving as a powerful symbol of success and economic stability since early settlers began homesteading on the continent. However, in this era of widening inequality, an unfortunate reality is that not everyone can access that dream. Predatory lending practices have particularly harmed African Americans, preventing them from accruing wealth and leading to immense suffering for communities all over the nation. Eyes on the Prize is a documentary series that seeks to shed light on this issue and other related civil rights struggles, helping viewers confront stories of past injustices in order to foster greater understanding and more equitable policies going forward.The Race for ProfitTaylor\'s book, \"Race for Profit: How Banks and the Real Estate Industry Undermined Black Homeownership,\" sheds light on an often unspoken problem with regards to home ownership in America. Her research reveals that many of the same systemic inequalities that have plagued communities of color for centuries, continue to contribute to a large gap in home ownership between whites and minorities. Taylor\'s work further argues that even though government subsidies were intended to increase access to housing for people who had been historically excluded, government programs ended up fueling discriminatory and exploitative practices within the real estate industry. Ultimately, her analysis speaks to a tension between idealistic rhetoric associated with the so-called \'American Dream\' of home ownership versus the reality of still limited access afforded especially to racial minorities today.[footnoteRef:2] [2: Keeanga-Yamahtta Taylor, Race for profit: How banks and the real estate industry undermined black homeownership (UNC Press Books, 2019), 41.]The argument of Taylor\'s book \"Race for Profit\" is that the federal government\'s housing policies of the 1960s and 1970s, which were intended to increase homeownership among African Americans, had the unintended consequence of creating a predatory market in which real estate speculators and mortgage lenders exploited African American homebuyers. Taylor examines this argument through a close examination of the history of the federal government\'s housing policies, the practices of real estate speculators and mortgage lenders, and the experiences of African American homebuyers.The book is written in a clear and concise manner, using evidence from a variety of sources including interviews, archival documents, and statistical analysis. The chapters are organized chronologically, beginning with an overview of the federal government\'s housing policies and then moving through the various stages of the housing market, from the real estate speculators to the mortgage lenders to the African American homebuyers. This structure allows Taylor to trace the development of the predatory market and the experiences of African American homebuyers over time. The chapters also work together to build a comprehensive picture of the predatory practices of real estate speculators and mortgage lenders and the consequences for African American homebuyers.Supported by OthersTaylor’s work does not have to stand alone, of course. It is supported by others, including that of Alex Gibney. In the documentary Park Avenue by Alex Gibney, the issue of wealth inequality is explored as well. The main points of Alex Gibney\'s Park Avenue: Money, Power & The American Dream are that the extreme wealth of the residents of 740 Park Avenue, one of the most expensive residential buildings in the world, has been used to increase their own power and influence while the rest of the country has suffered from a lack of economic mobility and opportunity.[footnoteRef:3] The documentary communicates the message that the extreme wealth of the residents of 740 Park Avenue stands in stark contrast to the little to no wealth of average Americans. That building represents the larger problem in America, which is that most of the nation’s wealth is concentrated in the hands of a few, who use it for their personal advantage.

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In other words, the wealth gap has created a system of inequality that is detrimental to the rest of the country. It gives evidence of this inequality by showing interviews with the residents of 740 Park Avenue, as well as interviews with people living in the Bronx, which is in the same congressional district as 740 Park Avenue. The documentary also provides evidence of the extreme wealth of the residents of 740 Park Avenue by showing the lavish lifestyles of the residents, as well as the amount of money that they have donated to political campaigns. [3: Alex Gibney, Park Avenue, PBS 2012.]What Taylor Does DifferentlyThe argument of Taylor\'s book \"Race for Profit\" is that the federal government\'s promotion of homeownership for African Americans in the 1960s and 1970s was part of a larger effort to create…

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…It shows how the Dream was used by social controllers and investors: “For some, the promotion of homeownership and access to credit in neighborhoods and communities that previously had been ignored was appealing as a new means of social control. Desperate federal and local officials believed that a greater investment and inclusion in mainstream society would stem the tide of rebellion and property destruction….For other reformers, specifically businessmen, formerly neglected urban markets were oases of new investment opportunities….”[footnoteRef:7] In short, everyone was in on the game, whether they knew it or not, liked it or not. It was never about the kind of equality that Allen said originally framed the Declaration of Independence. It was always about putting profits before people, as it has been in every industry in America. The Dream is sold as a commodity, and if it is beyond one’s price range there are predatory lenders willing to make sure one is not left out of the overpriced market. [7: Keeanga-Yamahtta Taylor, Race for profit: How banks and the real estate industry undermined black homeownership (UNC Press Books, 2019), 58.]ConclusionThe American Dream is a myth that has been perpetuated for generations, one that suggests that owning a home is the key to achieving success and financial stability. This myth has been used to encourage people to invest in the housing market, regardless of their economic situation. In her book, Race for Profit: How Banks and the Real Estate Industry Undermined Black Homeownership, Keeanga-Yamahtta Taylor dismantles this myth. Through her research, Taylor reveals how the federal government, banks, and real estate companies have systematically exploited Black Americans in their pursuit of profits. She shows how banks have targeted Black communities with predatory loan practices, such as charging higher interest rates and fees, and how real estate companies have used discriminatory practices to deny Black people access to housing. Taylor\'s work highlights the fact that the American Dream of homeownership is a myth that has been used to exploit Black Americans and other marginalized communities. Her research reveals how the pursuit of profits has been prioritized over the well-being of people, and how this has resulted in a system of inequality and injustice. By exposing the truth behind the myth of homeownership, Taylor\'s work helps to dismantle the false promise….....

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