Real news - part 2

Continued from part 1...

Another matter worth real consideration, or at least more focus is the recent report by the Federal Reserve. The Fed has found that Black African Americans and Hispanics pay substantially more for their mortgages than Whites. To be exact 54% more in 2005 for African Americans and 46% for Hispanics. That is a huge figure. Even in 2004 the figures were substantively higher. The figure, derived from over 8,000 financial institutions, was attributed to various factors such as riskier mortgage loans like piggyback loans which have higher rates. A question should be why is there such a discrepancy? Why are riskier loans given in greater quantity to non-whites? It was also found that African American and Hispanic borrowers are more prone to rejection; what is the basis of that?

Given that all things are equal, this report states, as I understand, that I would be denied or given a riskier higher-cost mortgage on the basis of my name and skin. That is very wrong on every level. The fact that this report has been virtually overlooked by most media with a preference to speak on the alleged drunkenness of Paris Hilton is sad. It’s my observation that matters involving finance and economics are often poorly discussed in the black culture, and the media reinforces this ignorance.

Why is it that in my travels I have found that children in their early teens are aware of investing and money management in Asian and White cultures, and to a lesser degree in Latino culture? Yet I know few Black African American youth, even in their early 20’s that know the same degree of information. It is because of this very late start that riskier mortgages are taken, perhaps why they are offered in greater numbers as well. But what causes this aversion to knowledge? That is worth knowing and correcting, yet little is ever said about it. More time is spent on promoting and emulating entertainers like rappers or training to attempt to be the next Mr. Michael Jordan. Talk about mistaken priorities.

So as I stated earlier, there are better things to focus on in the media. Perhaps it’s time we start.

This is what I think, what do you think?