7 Financial Habits That Keep Black People From Economic Freedom

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The Banking Industry and Mortgage Loans

In 2008, the U.S. Department of Treasury held a roundtable discussion about the economic state of the Black community. Jim Carr of the National Community Reinvestment Coalition said that many consumers believe that mortgage brokers have the mortgage seeker’s best interests in mind, and he called for regulatory reform of the mortgage industry and a ban on some predatory lending practices.

A recent example of predatory lending in the banking industry is the home loan scandal that ruined Countrywide Financial Corporation, a mortgage brokerage firm ultimately bought by Bank of America in 2008.  The Washington Post reports that from 2004 to 2008, Countrywide Financial  offered sub-prime mortgages to a predominantly Black consumer base. The end result left many Black Americans deeply in debt from inflated fees, and facing home foreclosure. 

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We hope this story was worth your time. For over 14 years, Atlanta Black Star has stayed Black-owned and independently run. We didn't get here by waiting on ad budgets that were never built to prioritize us. Our readers did that.

Corporate support for Black media has always been thin. Outlets like ours get roughly 1% of the $170 billion spent on U.S. advertising each year, and that margin is shrinking further as advertisers walk back the DEI-linked commitments they made in 2020. That's the backdrop. It's not why we're asking.

The wider picture isn't any steadier. Newspaper ad revenue has fallen more than 80% since 2005, and local newsrooms are closing at a rate of roughly two a week nationwide. When outlets go under, it's rarely the ones built to center a Black perspective from the ground up that get to stick around.

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