Recent Articles

Introducing a new column on financial advancement

Good credit — is it overrated?  

There was a time when cash was king. It seems like those days are long gone and now credit determines everything. Our county, from top to bottom, is built on credit. We need credit to buy a home, a car, to rent an apartment, to lease anything, to get a cell phone, to gain employment, to start a business, to determine interest rates on any financial obligation and your insurance payments. Continue Reading →

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Redlining targets Black Minnesotans and neighborhoods

Wells Fargo leads pack according to U of M report on sub-prime lenders

By Charles Hallman
Staff Writer


A new University of Minnesota Law School study shows that Blacks and other communities of color and low-income residents in the Twin Cities still lack access to credit. It is an update of a 2009 study that found that Blacks and Latinos — even with “very high income[s] — were much more likely to get sub-prime loans than very low-income White applicants.”

“It’s hard to believe that systemically a Black family that is making $157,000 a year is less likely to qualify for a prime loan than a White family that earns 40 [thousand a year],” noted Myron Orfield, the director of the Institute on Metropolitan Opportunity, which is housed at the U of M Law School. The report also shows that Blacks and other people of color who live in two North Minneapolis neighborhoods had the highest number of sub-prime loans compared to Whites in the same neighborhoods: 59 percent for people of color compared to 42 percent Whites in Near North; and 55 percent for people of color in Camden compared to 29 percent for Whites. These two areas also “were most dramatically affected” among Twin Cities neighborhoods. “Our report [reveals] discrimination in lending against individuals on the basis of race, and also discrimination in lending against neighborhoods on the basis of race,” noted Orfield, who heads the U of M Law School’s

Institute on Metropolitan Opportunity (IMO). Continue Reading →

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