Housing Discrimination, Predatory Lending Complaints Rose in 2001
Feature Story by Teresa Kraly - 4/10/2002
The National Fair Housing Alliance's (NFHA) Fair Housing Trends Report shows that the number of housing discrimination complaints filed by minorities and people with disabilities remained high throughout the country in 2001. The annual report, documenting reported acts of illegal discrimination nationwide, found race was the most common basis for housing discrimination, comprising 32% of all complaints. Disability and familial status (24% and 15% of all complaints, respectively) were the next most common factors, according to the NFHA. Other discrimination complaints were based on national origin (10%), gender (7%), color (2%), and religion (1%).The 2001 Trends Report documents a total 23,557 complaints filed through NFHA members, Fair Housing Initiatives Program (FHIP), and the Department of Housing and Urban Development (HUD). This is an increase from 2000 statistics when 22,139 complaints were filed. The real story behind the numbers is much worse?NFHA estimates that only one percent of illegal housing discrimination is reported. HUD estimates that two million Americans actually experience housing discrimination every year. The majority of underreported incidents target Hispanics and Asians, and include sexual harassment of female tenants in rental housing. According to rental audit investigations conducted in Fresno, San Antonio, and Houston, Hispanics seeking rental units face discrimination more than 70% of the time.
In addition to an increase in housing discrimination, predatory and discriminatory lending practices also rose in 2001. While lending only contributes 6% to the total complaints filed with the NFHA, it has a major impact on residential segregation and the economy of affected communities. Predatory lending practices were spotlighted in March when First Alliance Mortgage agreed to the largest predatory lending settlement to date. First Alliance will pay a total $60 billion dispersible to as many as 18,000 customers for allegedly targeting vulnerable homeowners with poor credit ratings, particularly the elderly, between January 1, 1992 and March 23, 2000.
"The persistence of illegal housing discrimination -- and the crucial role that fair housing organizations play in fighting it -- highlights the need to increase federal funding for local fair housing enforcement, education and outreach efforts under HUD's Fair Housing Initiatives Program," said NFHA President Shanna Smith. FHIP provides funding for enforcement, education and outreach activities by private fair housing organizations. Despite the chronic and pervasive nature of housing discrimination, funding for these program activities for the entire nation has remained less than $25 million and has fallen in recent years as low as $15 million.
The report did contain some good news, citing the success of the Fair Housing Initiative Program evidenced by a 38% increase in complaints made to private fair housing organizations across the country following the first national fair housing campaign in 1990. Calls to HUD's hotline also increased from 13,000 annually to 110,000 in the first six months of the campaign. Progress was also made on predatory lending, with investigation of mortgage lenders contributing to a record-breaking increase of African American and Latino home ownership in the 1990s.
