WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – released the following statement in response to a report by The Center for Investigative Reporting that showed banks are continually shutting the door on homeownership for people of color through modern-day redlining. Redlining is the practice of refusing to loan to people who live in certain geographic areas.
“The 2008 financial crisis wiped out half the wealth of Black and Latino families, and unfair lending practices like redlining continue to increase wealth inequality,” said Brown. “Congress should be working to make it easier for families to own homes and grow their wealth, not passing legislation that makes it easier for banks to prey on them.”
Senate Bill 2155, which Brown opposes, rolls back a number of the mortgage rules put in place after the crisis to protect Americans from abusive lending practices. S. 2155 would eliminate new reporting requirements of mortgage data that banks already collect. The data is used by the Consumer Financial Protection Bureau, state attorneys general and others to identify unfair lending trends and help prevent banks from discriminating against people of color. The bill also allows some banks to sell customers adjustable rate mortgages without assuming any responsibility for whether the customer can afford their payments once the initial rate increases.