Business

For Black Homeowners, Great Recession Has Not Receded

Published

11 years ago

June 30, 2015

By Freddie Allen
Senior Washington Correspondent

WASHINGTON (NNPA) – Most economists agree that the Great Recession, sparked by the housing market crash, officially ended in 2009, but the fallout from the crisis will continue to hurt Black families, especially Black homeowners, for decades to come, according to a new report commissioned by the American Civil Liberties Union (ACLU).

“In 2007, median wealth excluding home equity was $14,200 for blacks as compared with over six times that amount, $92,950, for whites. Home equity, therefore, made up 51 percent of total wealth for the typical white homeowner in 2007. For the typical black homeowner this same year, on the other hand, home equity constituted a far larger 71 percent of total wealth.”

The report continued: “The fact that blacks hold the bulk of their wealth in home equity likely explains, at least in part, why black wealth, on a percentage basis, declined more than white wealth during the housing bust and subsequent Great Recession.

The report conducted by the Social Science Research Council found that even though Black families and White families lost wealth during the Great Recession, White families lost less and recovered faster than Black families.

White wealth levels, excluding home equity, showed signs of recovery between 2009 and 2011, measuring zero losses, while 40 percent of non-home-equity wealth held by the average Black family evaporated during the same period.

And while the typical Black family shed another 13 percent of their non-home-equity wealth, from 2009-2011, White families, on average, saw their home-equity wealth losses “slow to zero.”

“Not only were Black homeowners devastated by the housing market collapse, they are now being left behind,” said Rachel Goodman, a staff attorney with the ACLU’s Racial Justice Program. “It is very much a tale of two recoveries.”

The report said that between 2007 and 2009, the average White family lost 9 percent of the equity in their homes, compared to average Black homeowner who experienced a 12 percent fall in home equity.

“This disparity may stem from the fact that blacks were more exposed to predatory loans and other types of toxic mortgages and ballooning interest rates as compared to whites, leading to disparate rates of delinquency and foreclosure,” the report said.

Over the next two years, that slide in home equity would shrink to 2 percent for White families and 6 percent for Black homeowners. Further, these losses slowed to only 2 percent between 2009 and 2011 for White households, but for Blacks, home equity values continued to decline by 6 percent.

“While White home equity began to recover quickly after the housing crisis stabilized, this was not the case for Blacks,” the report said. “This difference likely emerges as a result of Blacks’ disproportionate exposure to predatory loans and other deceptive mortgage schemes.”

The Great Recession had a profound impact on the course of Black wealth and the racial wealth gap in the United States. Researchers predicted that, without the Great Recession, the ratio of White to Black median wealth would have decreased “from 4.4 times greater in 1999 to four times greater by 2031.” Instead the gap will widen and the average White family’s wealth is predicted to be 4.5 times greater than the average Black families wealth.

“By 2031, White wealth is forecast to be 31 percent below what it would have been without the Great Recession, while Black wealth is down almost 40 percent,” stated the report. “For a typical Black family, median wealth in 2031 will be almost $98,000 lower than it would have been without the Great Recession.”

Researchers also indicated that the home equity values the adult children of Black families that took losses during the recession will also suffer.

“Without the Great Recession, by 2050, home equity values for Blacks and Whites whose parents or grandparents owned a home at some point between 1999 and 2011 may have approached parity,” the report said. “As a result of discriminatory lending practices and the Great Recession, our analysis suggests that the next generations of Black families will still have home equity values only 70 percent of their white counterparts.”

Citing a joint study by the Department of Housing and Urban Development and the Treasury Department, the ACLU study noted that, “as of 2000, ‘borrowers in Black neighborhoods [were] five times as likely to refinance in the subprime market than borrowers in White neighborhoods,’ even when controlling for income.”

When Bank of America bought Countrywide Financial in 2008, the bank’s track record of troubling mortgage-lending practices and a discrimination case came with the deal. In 2011, Bank of America settled the case with the Justice Department for $355 million. The Department alleged that Countrywide had engaged in “discriminatory mortgage lending practices against more than 200,000 qualified African-American and Hispanic borrowers from 2004 through 2008.”

In 2012, the Justice Department settled a fair lending case with Wells Fargo Bank, over allegations that the financial institution, “engaged in a pattern or practice of discrimination against qualified African-American and Hispanic borrowers in its mortgage lending from 2004 through 2009,” a statement for the Justice Department said.

Investigators also found that minorities were steered into subprime mortgage loans at higher rates than similarly qualified White borrowers.

The settlement included $184.3 million for minority borrowers and another $50 million in resources for direct down payments to help residents living in communities hit the hardest during the housing crash.

But it’s going to take more than settlement money to help Black homeowners guided into subprime mortgages, who were crushed during the housing market crisis as they continue you struggle almost six years after the end of the recession.

In the press release about the report, Sarah Burd-Sharps, the co-director of the Social Science Research Council’s Measure of America project, said that, “Steps can be taken right now to help close the growing racial wealth divide, and to ensure that the next generation has the benefits of assets and savings that bring a more secure future.”

The report recommended that policymakers closely monitor current lending practices at banks to protect low-income and minority borrowers from discrimination. The report also suggested that lawmakers clarify legislation governing access to credit and that they give regulators more power to guard consumers against racially disparate practices in servicing mortgage loans.

Goodman concluded: “This study makes clear that the devastating impact of the financial crisis on Black families’ wealth will continue until policymakers address this pressing issue.”

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Oakland Post: Week of December 31, 2025 – January 6, 2026

The printed Weekly Edition of the Oakland Post: Week of – December 31, 2025 – January 6, 2026

Published

4 days ago

January 2, 2026

Oakland Post

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Big God Ministry Gives Away Toys in Marin City

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grow up.

Published

1 week ago

December 29, 2025

Oakland Post

From top left: Pastor David Hall asking the children what they want to be when they grow up. Worship team Jake Monaghan, Ruby Friedman, and Keri Carpenter. Children lining up to receive their presents. Photos by Godfrey Lee.

By Godfrey Lee

Big God Ministries, pastored by David Hall, gave toys to the children in Marin City on Monday, Dec. 15, on the lawn near the corner of Drake Avenue and Donahue Street.

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grew up.

Around 75 parents and children were there to receive the presents, which consisted mainly of Gideon Bibles, Cat in the Hat pillows, Barbie dolls, Tonka trucks, and Lego building sets.

A half dozen volunteers from the Big God Ministry, including Donnie Roary, helped to set up the tables for the toy giveaway. The worship music was sung by Ruby Friedman, Keri Carpenter, and Jake Monaghan, who also played the accordion.

Big God Ministries meets on Sundays at 10 a.m. at the Mill Valley Community Center, 180 Camino Alto, Mill Valley, CA Their phone number is (415) 797-2567.

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First 5 Alameda County Distributes Over $8 Million in First Wave of Critical Relief Funds for Historically Underpaid Caregivers

“Family, Friend, and Neighbor caregivers are lifelines for so many children and families in Alameda County,” said Kristin Spanos, CEO, First 5 Alameda County. “Yet, they often go unrecognized and undercompensated for their labor and ability to give individualized, culturally connected care. At First 5, we support the conditions that allow families to thrive, and getting this money into the hands of these caregivers and families at a time of heightened financial stress for parents is part of that commitment.”

Published

1 week ago

December 29, 2025

Oakland Post

Costco. Courtesy image.

Family, Friend, and Neighbor Caregivers Can Now Opt Into $4,000 Grants to Help Bolster Economic Stability and Strengthen Early Learning Experiences

By Post Staff

Today, First 5 Alameda County announced the distribution of $4,000 relief grants to more than 2,000 Family, Friend, and Neighbor (FFN) caregivers, totaling over $8 million in the first round of funding. Over the full course of the funding initiative, First 5 Alameda County anticipates supporting over 3,000 FFN caregivers, who collectively care for an estimated 5,200 children across Alameda County. These grants are only a portion of the estimated $190 million being invested into expanding our early childcare system through direct caregiver relief to upcoming facilities, shelter, and long-term sustainability investments for providers fromMeasure C in its first year. This investment builds on the early rollout of Measure C and reflects a comprehensive, system-wide strategy to strengthen Alameda County’s early childhood ecosystem so families can rely on sustainable, accessible care,

These important caregivers provide child care in Alameda County to their relatives, friends, and neighbors. While public benefits continue to decrease for families, and inflation and the cost of living continue to rise, these grants provide direct economic support for FFN caregivers, whose wages have historically been very low or nonexistent, and very few of whom receive benefits. As families continue to face growing financial pressures, especially during the winter and holiday season, these grants will help these caregivers with living expenses such as rent, utilities, supplies, and food.

The funding for these relief grants comes from Measure C, a local voter-approved sales tax in Alameda County that invests in young children, their families, communities, providers, and caregivers. Within the first year of First 5’s 5-Year Plan for Measure C, in addition to the relief grants to informal FFN caregivers, other significant investments will benefit licensed child care providers. These investments include over $40 million in Early Care and Education (ECE) Emergency Grants, which have already flowed to nearly 800 center-based and family child care providers. As part of First 5’s 5-Year Plan, preparations are also underway to distribute facilities grants early next year for child care providers who need to make urgent repairs or improvements, and to launch the Emergency Revolving Fund in Spring 2026 to support licensed child care providers in Alameda County who are at risk of closure.

The FFN Relief Grants recognize and support the essential work that an estimated 3,000 FFN caregivers provide to 5,200 children in Alameda County. There is still an opportunity to receive funds for FFN caregivers who have not yet received them.

In partnership with First 5 Alameda County, Child Care Payment Agencies play a critical role in identifying eligible caregivers and leading coordinated outreach efforts to ensure FFN caregivers are informed of and able to access these relief funds.FFN caregivers are eligible for the grant if they receive a child care payment from an Alameda County Child Care Payment Agency, 4Cs of Alameda County, BANANAS, Hively, and Davis Street, and are currently caring for a child 12 years old or younger in Alameda County. Additionally, FFN caregivers who provided care for a child 12 years or younger at any time since April 1, 2025, but are no longer doing so, are also eligible for the funds. Eligible caregivers are being contacted by their Child Care Payment Agency on a rolling basis, beginning with those who provided care between April and July 2025.

“This money is coming to me at a critical time of heightened economic strain,” said Jill Morton, a caregiver in Oakland, California. “Since I am a non-licensed childcare provider, I didn’t think I was eligible for this financial support. I was relieved that this money can help pay my rent, purchase learning materials for the children as well as enhance childcare, buy groceries and take care of grandchildren.”

Eligible FFN caregivers who provided care at any time between April 1, 2025 and July 31, 2025, who haven’t yet opted into the process, are encouraged to check their mail and email for an eligibility letter. Those who have cared for a child after this period should expect to receive communications from their child care payment agency in the coming months. FFN caregivers with questions may also contact the agency they work with to receive child care payments, or the First 5 Alameda help desk, Monday through Friday, from 9 a.m. to 5:00 p.m. PST, at 510-227-6964. The help desk will be closed 12/25/25 – 1/1/26. Additional grant payments will be made on a rolling basis as opt-ins are received by the four child care payment agencies in Alameda County.

Beginning in the second year of Measure C implementation, FFN caregivers who care for a child from birth to age five and receive an Alameda County subsidized voucher will get an additional $500 per month. This amounts to an annual increase of about $6,000 per child receiving a subsidy. Together with more Measure C funding expected to flow back into the community as part of First 5’s 5-Year Plan, investments will continue to become available in the coming year for addressing the needs of childcare providers in Alameda County.

About First 5 Alameda County

First 5 Alameda County builds the local childhood systems and supports needed to ensure our county’s youngest children are safe, healthy, and ready to succeed in school and life.

Our Mission

In partnership with the community, we support a county-wide continuous prevention and early intervention system that promotes optimal health and development, narrows disparities, and improves the lives of children from birth to age five and their families.

Our Vision

Every child in Alameda County will have optimal health, development, and well-being to reach their greatest potential.

Learn more at www.first5alameda.org.