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Study finds Boston banks guilty of redlining

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Summary
Meg Vaillancourt reports on a study accusing Boston banks of engaging in redlining
Topics
Banks and banking, Discrimination, Discrimination in mortgage loans--Massachusetts, Civil rights, Segregation, Federal Reserve Bank of Boston
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1:00:14: Visual: Shots of residential homes in suburban areas. Meg Vaillancourt reports that home prices are on the rise. Vaillancourt notes that race can also be obstacle to home ownership. V: Footage of an African American man being interviewed at Downtown Crossing in Boston. The man says that he is turned down every time he applies for a mortgage. Footage of an African American woman being interviewed at Downtown Crossing. The woman says that she has had to submit a great deal of paperwork when applying for a mortgage; that she has been examined more carefully than her income would merit. Footage of Joseph Kennedy (US Congressman) saying that redlining is practiced across the nation; that many officials try to deny it. Vaillancourt reports that the Federal Reserve Bank has released a study which finds that three times as many mortgages are approved in Boston's white neighborhoods as in Boston's African American neighborhoods. V: Shot of an African American woman looking out of the window of an apartment building. On-screen visuals and text detail the findings of the study. Footage of an African American man being interviewed at Downtown Crossing. The man says that banks seem to believe that African Americans do not have money. Footage of another man being interviewed. The man says that there should be no discrimination in lending practices. Shots of homes in a residential neighborhood; of two white women and a child standing in front of one of the homes. Vaillancourt reports that some blamed economic factors instead of race for redlining practices. Vaillancourt quotes statistics which show that African Americans earn less than whites on average; that homes in African American neighborhoods cost less; that there is less development in African American neighborhoods. V: Shots of residential homes in a variety of neighborhoods. Vaillancourt notes that economic factors do not explain the gap in mortgage lending practices. Vaillancourt quotes the study as finding that a 24% difference in mortgages between white and African American neighborhoods is found even when economic factors are taken into account. Vaillancourt reports that the study found that economic factors do not explain the gap in lending practices. V: On-screen text and visuals detail the study findings. Footage of Kennedy saying that poor people are receiving credit; that people of color are being denied access to credit. Vaillancourt reports that the banking industry is in crisis after the savings and loan scandal; that many banks have been forced to close. Vaillancourt notes that taxpayers are bailing out some banks; that banks are having a hard time collecting on bad loans. V: Shots of employees and customers in the lobby of a bank; of a client filling out a loan application; of bank employees sitting at their desks while helping customers. Shot of an African American bank employee helping a white customer with a loan application. Footage of Kennedy saying that banks have access to federal funds; that banks receiving federal funds should not practice discrimination. Shot of two triple-decker houses in a residential neighborhood. One of the houses is dilapidated. Vaillancourt reports that Boston banks have agreed to change their lending practices; that meetings between community activists and banks are scheduled for next month. V: Footage of the first African American man at Downtown Crossing. The man says that he has been forced to look elsewhere for loans; that the banks' lending practices will not stop him.

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