3 Institutional Racism and the Management of Government Organizations and Policies: A Critical Examination of HAMP
Institutional Racism and the Management of Government Organizations and Policies: A Critical Examination of HAMP
Racial and ethnic discrimination has deep–seated roots in the history of mortgage lending in the United States. Lending policies such as redlining and predatory lending have long defined, and hardened, the racial divide in housing affordability and accessibility, housing stock quality, and the geographic distribution of available housing in the U.S. In order to pose the question of how federal housing policies may impact (and be impacted by) race today, this chapter examines specifically how African Americans and non–Hispanic whites differ in terms of putative reasons for denial of home mortgage refinancing in the federally sponsored Home Affordable Modification Program (HAMP) trial plan.
This chapter is based on a large–scale empirical study of the original HAMP trial, relying on national data sets provided by the United States Department of Treasury (2011). These data sets consisted of quantitative program information from the initiation of the HAMP program in September 2009 through November 2012. In examining these data, we found that among the most prominent denial–reason groups in the United States, the differences in denial reasons for African Americans and non–Hispanic whites were most salient and statistically significant. These findings raise questions regarding the trial–stage of the HAMP’s role in sharpening rather than mitigating adverse outcomes in home mortgage affordability and borrowing access.
Institutionalized racial discrimination has long been an identifiable...
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