Reading Questions:
- What kind of reasons did banks give for the discrepancies in lending practices to white and black borrowers? Did the researchers find these reasons to be valid in reality?
- What steps did Dedman regarding data on rapidly growing Atlanta neighborhoods, and why? Would including these neighborhoods in the data set reveal more potential bias?
Hi everyone! I’m David, a senior in Advertising/PR. I’m from Bentonville, AR, just 30 minutes north from here. I love podcasting, but it’s been a while since I’ve done/been on one. I’ve done some communications work for the family business out of Bentonville, but I haven’t had a real job in the field yet. I write news and (occasionally) opinion articles for PKMNcast.com, the site for a pretty popular podcast I’ve been helping out with since high school. My favorite articles I’ve written were probably Pokemon of the Week articles that were discussed in a segment on the show, probably from 2011-2013, but I also did a significant amount of editing on larger special opinion pieces the past few years. I’m hoping to start up a new podcast with friends soon, as well as get an internship or entry level job in the field of new media. Sorry for the late post, my invite to contribute to the page only just started working. Looking forward to getting to know you all this semester!
Some of the banks’ reasoning is spelled out in this sidebar:
http://powerreporting.com/color/2a.html
“That last phrase, “consistent with safe and sound operation,” brings into play one of banking’s basic principles.
“It’s called the First Rule of Banking,” said James Wallace, vice president of Fulton Federal Savings and Loan. “Don’t lend money if you won’t get it back.”
It has a corollary, the Second Rule of Banking: “When in doubt, don’t.”
Don’t lend more than borrowers are able to pay. In case they don’t pay it back, don’t lend more than can be recovered by foreclosing and selling the property. Don’t lend $100,000 on a $60,000 house. And don’t lend $40,000 on a $50,000 house in a neighborhood so bad that the house may someday be worth only $38,000.
In effect, lending money to homebuyers is an expression of faith — faith in the borrower, faith in the property, faith in the neighborhood.”
How study of home loans in metro Atlanta was carried out
–Study method was spelled out here
http://powerreporting.com/color/1d.html
Nice introductory post about your background