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Why aren’t people of color getting more home loans in Maryland? Advocates are pushing for changes

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Why aren’t people of color getting more home loans in Maryland? Advocates are pushing for changes


Two advocacy groups are pushing for a state version of the federal Community Reinvestment Act to ensure more equitable treatment of people of color by home lenders.

In Maryland, Black and Latino applicants were denied home loans at a rate 1.6 times higher than white applicants, according to data from the National Community Reinvestment Coalition from 2018 to 2020. In the city of Baltimore, Black applicants were rejected 2.1 times more than white applicants.

Only half of the top 10 mortgage lenders in Maryland were required to meet CRA guidelines, according to the coalition and Economic Action Maryland.

The federal CRA focused on the credit needs of low- and moderate-income communities, but it does not require many lenders to reinvest in communities of color. And, according to the Consumer Financial Protection Bureau, 60 to 70% of mortgages originated with institutions not covered by the federal law, including credit unions and home mortgage companies.

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This significantly affects a city like Baltimore, where 33% of loans went to African American borrowers despite the city being 62% Black, according to the coalition.

“Credit unions have a significantly higher denial rate for borrowers of color than the financial institutions that are covered by CRA like banks and the non-mortgage lenders,” said Marceline White, executive director of the program.

“In a state like Maryland where we know Prince George’s County is one of the wealthiest majority-Black counties in the country, it’s disturbing to see these kinds of denial rates across the state,” White added.

Advocates say a state-level CRA would complement the federal law by assessing performance in individual counties and addressing underserved communities.

A Maryland CRA would apply to banks and credit unions with about $46 billion in assets and cover mortgage companies that made more than 68,000 loans over three years, according to the National Community Reinvestment Coalition.

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“The reason why you want this is because not all banks and credit unions are doing a great job in serving underserved communities,” said Josh Silver, a senior fellow with the coalition. “So you want to encourage the ones that are behind to do better.”

President Jimmy Carter signed the CRA into law in 1977, nine years after Congress passed the Fair Housing Act, which outlawed the discriminatory practice known as redlining. The CRA focused on the credit needs of low- and moderate-income communities, as well as curbing discriminatory bank lending through loans, investments, products and services.

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“The banking industry has changed dramatically since 1977 and emerging technologies as well as the growth of non-bank lenders means there is a need to modernize, expand, and strengthen CRA to meet the needs of our communities and marketplace today,” Economic Action Maryland said in its position paper.

And data shows that “race is a more significant predictor of denial than income or creditworthiness,” the group said.

Lenders subject to the CRA are overseen by the Federal Deposit Insurance Corp., the Federal Reserve Board and the Office of the Comptroller of the Currency. These regulators provide information on the banks they oversee, as well as the banks’ CRA ratings and performance evaluations.

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On a federal level, banks pass their exams around 98% of the time even as “bank lending patterns continue to exacerbate existing racial inequalities,” according to Economic Action Maryland.

The advocacy group has called for establishing CRA requirements for mortgage companies and credit unions, expanding grading requirements to include “assessments of lending in distressed or underserved communities or populations,” examining performance by county, and creating stronger enforcement mechanisms.

“The banks that are doing better are required by law to make sure that they are trying to reduce these kind of lending disparities,” White said. “If they want to grow and merge with another organization, having a poor record could affect their ability to do so.”

Maryland would not be the first state to enact a state-level CRA. Connecticut, Massachusetts, New York and Illinois have extended their own regulations to non-banks and credit unions. Massachusetts was the first to do so.

After the enactment of the Massachusetts CRA, the number of both Black and Hispanic credit union applicants rose significantly from 2019 to 2020, according to the Massachusetts government.

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With Democratic Gov. Wes Moore’s swearing in this year, there is hope among advocates that Maryland will join the list of states with a state-level CRA in the next year or two.

“We’re working with Economic Action Maryland and the state legislature for introducing a bill, hopefully in the next session,” Silver said of the coalition. “Obviously, we hope the legislature passes it and Governor Moore signs it.”

Moore’s office did not respond to a request for comment.

david.lance@thebaltimorebanner.com





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Maryland

Watch Aidan Chiles, Nick Marsh talk MSU win over Maryland

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Watch Aidan Chiles, Nick Marsh talk MSU win over Maryland


Michigan State won a big time road game over Maryland, improving their record to 2-0, and giving head coach Jonathan Smith his first Big Ten conference victory as the head man of the Spartans.

A big part of that win was the connection between Aidan Chiles and Nick Marsh, and more specifically their 77-yard touchdown connection tying the game 24-24 late in the fourth quarter.

Chiles and Marsh spoke to the media after the team’s win, which you can watch via Spartan Mag on YouTube:

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Contact/Follow us @The SpartansWire on X and like our page on Facebook to follow ongoing coverage of Michigan State news, notes and opinion. You can also follow Cory Linsner on X @Cory_Linsner





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16-year-old arrested after 15-year-old fatally shot in Maryland high school bathroom

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16-year-old arrested after 15-year-old fatally shot in Maryland high school bathroom


A 16-year-old student at a high school in Maryland has been detained after he allegedly shot and killed a 15-year-old student in one of the school’s bathrooms.

The name of the suspect has yet to be released. The victim, Warren Curtis Grant, died following the shooting at Joppatowne High School. Harford County Sheriff Jeff Gahler made the announcement at a press briefing.

The suspect fled the scene but was detained close by just minutes later.

“He has yet to be charged but will be charged, and at the time those charges are preferred as an adult, we will release the name of the suspect,” Gahler told the press, according to The Guardian.

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The sheriff added that his office has handled more than 10 cases in the last two years “where the suspect was either the victim, witness or the suspect in an incident handled by the Harford county sheriff’s office.”

A member of the Harford County Sheriff's department tries to clear the way for an emergency vehicle as it heads toward Joppatowne High School after a shooting at the school, Friday, Sept. 6, 2024, in Joppatowne, Md
A member of the Harford County Sheriff’s department tries to clear the way for an emergency vehicle as it heads toward Joppatowne High School after a shooting at the school, Friday, Sept. 6, 2024, in Joppatowne, Md (AP)

While the sheriff’s office told the public to avoid the area after the shooting, it said that it was an “isolated incident, not an active shooter.”

An “active shooter” situation refers to when a suspect is firing against everyone they see rather than targeting a particular person.

An area church was used as a reunification center for students and their parents. The school is located about 20 miles northeast of Baltimore.

Gahler noted that more than 100 law enforcement officials responded to the scene.

The fight at Joppatowne High School took place just two days after the shooting at a high school outside Atlanta, Georgia where a 14-year-old shot and killed four people.

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How to watch Michigan State vs. Maryland (9/7/24): TV channel, kickoff time, live stream

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How to watch Michigan State vs. Maryland (9/7/24): TV channel, kickoff time, live stream


Michigan State got the job done in its season opener, but it wasn’t pretty as it hung on at home against Florida Atlantic. Now, it has to head on the road to open Big Ten play in what promises to be a tougher test.

· Watch the Michigan State Spartans on FuboTV (free trial)

· Watch the Michigan State Spartans on Sling

· Watch the Michigan State Spartans on DirecTV Stream

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· Visit MLive’s Betting Home for latest odds & sportsbook promos

Michigan State is 1-0, but the road gets tougher now. The Spartans go on the road and start Big Ten play early in Week 2 with a trip to Maryland. The Terrapins have a new look this year without quarterback Taulia Tagovailoa but looked strong in their season-opener against Howard last week.

· Who: Michigan State at Maryland

· When: 3:30 p.m.

· Where: SECU Stadium, College Park, Maryland

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· Twitter: Follow Matt Wenzel

· Live updates: Beginning at 2:30 p.m. at mlive.com/spartans

· Latest line: Maryland -9.5

TV Network: Big Ten Network

Streaming options:

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· FuboTV is offering $30 off the first month for all U.S. plans. Sign up to get your favorite TV shows, live sports events, and much more

· Sling currently has an offer of $20 for the first month of subscription and has streaming coverage of live sports, news and entertainment.

· DirecTV Stream offers live sports, news and on demand TV.

Five must-reads before kickoff:

* Michigan State lost two members of its secondary, Dillon Tatum and Khalil Majeed, to long-term injuries in its season opener. The team is turning to some new faces to fill in the holes from those injuries.

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* Alex VanSumeren was once Michigan State’s top-rated recruit, but he’s been seldom seen on the field due to injuries. Now, though, he’s healthy and making his mark on the Spartans’ defensive line.

* Aidan Chiles’ 10-completion, two-interception performance in Michigan State’s season-opener was his “floor,” according to offensive coordinator Brian Lindgren, who has a plan to improve the quarterback’s performance going forward.

* Jonathan Smith had a name for Week 1 in college football: overreaction Saturday. He’s cautioning fans not to put too much stock into an opening performance that likely underwhelmed many.

* The run game and discipline are two of Matt Wenzel’s five things to watch in this week’s matchup.

Michigan State

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* Passing: Aidan Chiles 10-14, 114 yards, 0 TD, 2 INT

* Rushing: Kay’ron Lynch-Adams 9 rush, 101 yards, 1 TD

* Receiving: Michael Masunas 2 rec., 29 yards, 0 TD

* Tackles: Angelo Grose 12

* Sacks: Khris Bogle 1.5

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* Interceptions: Grose, Nikai Martinez 1

Maryland

* Passing: Billy Edwards Jr. 20-27, 311 yards, 2 TD, 0 INT

* Rushing: Roman Hemby 14 rush, 66 yards, 1 TD

* Receiving: Tai Felton 7 rec., 178 yards, 2 TD

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* Tackles: Glendon Miller 6

* Sacks: None

* Interceptions: Ruben Hyppolite II, Miller 1

Friday, Sept. 6

Western Illinois at Indiana

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Duke at Northwestern

Saturday, Sept. 7

Texas at Michigan, noon (FOX)

Rhode Island at Minnesota, noon (Peacock)

Bowling Green at Penn State, noon (BTN)

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Akron at Rutgers, noon (BTN)

Iowa State at Iowa, 3:30 p.m. (CBS)

Michigan State at Maryland, 3:30 p.m. (BTN)

Eastern Michigan at Washington, 3:30 p.m. (BTN)

South Dakota at Wisconsin, 3:30 p.m. (FS1)

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Kansas at Illinois, 7 p.m. (FS1)

Colorado at Nebraska, 7:30 p.m. (NBC)

Western Michigan at Ohio State, 7:30 p.m. (BTN)

Boise State at Oregon, 10 p.m. (Peacock)





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