Former HUD secretary criticizes Bloomberg on housing policy

Former HUD secretary criticizes Bloomberg on housing policy
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Former HUD secretary criticizes Bloomberg on housing policy Former Housing and Urban Development (HUD) Secretary Julian Castro (D) criticized presidential hopeful Michael Bloomberg for statements he made while he was mayor of New York City in 2008, at the height of the financial crisis. Bloomberg, a multi-billionaire running a self-funded presidential campaign, blamed the recession on the overturn of “redlining,” a discriminatory housing policy that made it difficult for people of color to qualify for mortgages. “It all started back when there was a lot of pressure on banks to make loans to everyone,” Bloomberg said at a forum that was hosted by Georgetown University in September 2008. “Redlining, if you remember, was the term where banks took whole neighborhoods and said, ‘People in these neighborhoods are poor, they’re not going to be able to pay off their mortgages, tell your salesmen don’t go into those areas.’ “And then Congress got involved, local elected officials, as well, and said ‘Oh that’s not fair, these people should be able to go get credit.’ And once you started pushing in that direction, banks started making more and more loans where the credit of the person buying the house wasn’t as good as you would like,” he continued. Though the fact that banks approved mortgages to otherwise ineligible creditors did lead to the 2008 recession, redlining discriminated against creditors based on where they lived, and subsequently, their demographic, and the practice was banned in the 1970s. The clip was released shortly after […]

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