June 7, 2018
By Charlene Crowell
For as long as many people of color can remember, succeeding generations have called for justice. Despite these age-old pleas, justice is not only elusive, but frustrating since the enactment of a series of civil rights laws. Despite federal guarantees of equal treatment, much of Black America experiences something short of what was promised.
A recent settlement of a federal redlining lawsuit is yet another sign that justice is still being denied. Even worse, those entrusted in key federal agencies are willing to accept much less than what is fair or just.
On January 13, 2017 and as one of the last cases brought under the Obama Administration, the Department of Justice (DOJ) sued KleinBank, a lender in the Twin Cities’ metropolitan area with violations of both the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA). The complaint said in part that from at least 2010 to 2015, “KleinBank’s discriminatory practices as described herein have been intentional and willful, and implemented with reckless disregard for the rights of individuals on the basis of their race and/or national origin.”
The January 2017 lawsuit followed a near two-year DOJ investigation that uncovered illegal redlining in neighborhoods of color. Within the metro area, lending in 78 of 97 majority-minority census tracts were excluded by the bank. Further, as KleinBank expanded to add at least seven full-service branches since 2007, not one is in a community of color.
Beyond a failure to serve all consumers, mortgage applications and approvals among consumers of color were equally disturbing. Other metro lenders surpassed KleinBank by as large a ratio as five-to-one in serving consumers of color. For example, among the 5,837 single-family residential loan applications filed with KleinBank, only 1.06 percent – 62 – came from consumers of color. Of the bank’s approved 4,392 residential mortgages, only 51 were secured in neighborhoods of color.
With these and other findings, DOJ’s complaint requested both monetary damages to those consumers who fell victim to these illegalities, and a civil penalty to vindicate the public interest.
Yet on May 8 of this year when a settlement was reached with the current DOJ, there was no civil penalty or judicial oversight – two key elements in earlier settlements with similar charges. Among other requirements, a limited, three-year agreement authorized a $300,000 loan subsidy fund to increase credit access in predominantly minority neighborhoods, as well as another $300,000 for credit repair initiatives, education, outreach and advertising that would include minority media. The settlement required the bank to redraw its Community Reinvestment Act assessment area. KleinBank also agreed to open a single branch in a neighborhood of color within the next year.
According to the settlement, “The United States agrees to jointly stipulate with KleinBank to the dismissal of the Civil Action. The parties agree and acknowledge that this consideration is adequate and sufficient.”
Pardon me, but I respectfully disagree – and so do others who believe in fair lending. A lack of civil penalty coupled with a brief term of compliance does not bode well for fair or just lending.
“The absence of a civil penalty is noteworthy and inconsistent with past redlining cases,” noted Melissa Stegman, a Senior Policy Counsel with the Center for Responsible Lending (CRL). “Furthermore, unlike prior cases, the parties entered into a settlement agreement – not a consent order. A consent order is a more powerful vehicle in that it is subject to the judge’s approval. Also, with a court order, the court maintains supervision of the agreement. Arguably, it’s a stronger way to hold the bank accountable for meeting the terms of the settlement.”
According to the original DOJ complaint the Federal Deposit Insurance Corporation (FDIC) never conducted a redlining examination of the bank, nor did it comment on or approve the bank’s CRA assessment area.
It is also noteworthy that earlier this month HUD announced it planned to seek public comment to revisit whether its 2013 rule known as ‘disparate impact’ was consistent with the 2015 U.S. Supreme Court ruling. Until this rule was adopted in the previous administration, many entities argued in fair housing lawsuits that lenders never intended to discriminate in housing. Disparate impact theory focuses on the effects of practices that foster housing discrimination and was upheld by the U.S. Supreme Court in 2015. HUD’s interest in public comment in 2018 sets the stage for weakening or reversing the rule and is yet another rollback of Obama-era initiatives.
Unfortunately, these kinds of fair lending concerns are experienced across the nation. In 2017, 28,843 housing-related complaints were reported, according to the National Fair Housing Alliance’s 2018 Fair Housing Trends Report. Of these complaints, more than 70 percent were handled by private, nonprofit fair housing organizations.
But the federal Department of Housing and Urban Development (HUD) is charged with ensuring effective enforcement of the Fair Housing Act. Even so, HUD processed less than five percent of last year’s complaints – about 1,311. Further, DOJ brought only 41 cases from the 6,896 complaints forwarded by Fair Housing Assistance Program agencies.
The Home Mortgage Disclosure Act is the nation’s most comprehensive mortgage lending report for its inclusion of data on lending by race and ethnicity. It too will be under review by the Consumer Financial Protection Bureau and appears to be in jeopardy. Currently, this annual report informs the housing industry as well as consumers as to remaining disparities and challenges. Without its detailed data, fair housing measures would be watered down.
When government offices charged and entrusted to enforce laws fail to fulfill their full duties, laws enacted to end discrimination become meaningless. If HUD turns away from fair housing enforcement, as recent actions taken by the agency indicate, or DOJ settles for far less than the law allows or what has even occurred as precedent, none of us should stay silent in the face of these failures.
“It has been 50 years and the Fair Housing Act still has not been fully implemented,” noted Lisa Rice, President and CEO of the National Fair Housing Alliance. “We cannot build a thriving society as long as our nation is plagued by discrimination, segregation, and severe economic inequality.”
May 31, 2018
LAWT News Service
Senator Steven Bradford (D– Gardena) joined by Governor Edmund G. Brown, Senate pro Tem Toni Atkins (D-San Diego), Assembly Speaker Anthony Rendon (D-Lakewood) and the Black, Women, API, Jewish, LGBTQ, and Latino Legislative Caucuses were all in attendance to welcome Debbie Lumpkin of Los Angeles, as Deputy Inspector General for Diversity and Small Business Development in the Office of Audits and Investigations at the California Department of Transportation (Caltrans). The Office of Audits and Investigation is responsible for services that assist Caltrans management in accomplishing Caltrans objectives, setting priorities, and improving accountability to diverse community groups.
“Getting me to yes was because of the governor’s early and strong commitment to diversity. It was critical that diverse, minority interest be a part of this major project of rebuilding our infrastructure. “ The language of the law must consider the various diversity caucuses we have here in the California statehouse. It is not enough for minorities to just drive on our roads, it is our responsibility to create an opportunity for men and women, and black and brown communities to benefit from the contracts that will be created by SB 1,” the Senator continued.
Senator Bradford, Vice-Chair of the California Legislative Black Caucus, is a strong advocate of diversity and business development. During the negotiation of ‘The Road Repair and Accountability Act of 2017’ (SB 1), the Senator was not convinced on the prospects of the proposed legislation or the impact it would have on Californians from raising taxes.
Senate Bill 1 took effect in January of 2018. Debbie Lumpkin the newly appointed Deputy Inspector General for Diversity and Business Development started in March of this year. Lumpkin’s goal is to create a multitude of programs and opportunities for people of diverse backgrounds, ensuring all communities are aware they can apply for SB 1 contracts.
“This position has the potential to impact all community groups that represent the great state of California”, said Lumpkin.
Debbie Lumpkin is a founding partner of a consulting company launched in 2013 that represents major corporations and diverse communities nationwide.
Remarks at the reception were given by: Governor Edmund G. Brown Jr., Senate pro Tem Toni Atkins, Assembly Speaker Anthony Rendon, The California Legislative Black Caucus Chair Asm. Chris Holden (D-Pasadena), the California Latino Legislative Caucus Chair Sen. Ben Hueso (D-San Diego), and the Chair of the Asian Pacific Islander Caucus Asm. Rob Bonta (D- Oakland).
May 24, 2018
City News Service
The Los Angeles County Board of Supervisors voted today to back legislation that would automatically remove or reduce certain cannabis-related convictions.
Supervisors Mark Ridley-Thomas and Hilda Solis recommended support for AB 1793. The bill sponsored by Assemblyman Rob Bonta, D-Oakland, would shift the work of identifying cases eligible for dismissal or misdemeanor status to the Department of Justice, rather than individuals convicted.
“Thousands of eligible people around the state may be unaware of the opportunity to erase cannabis-related convictions and start anew,” Solis said.
“The war on drugs primarily hinders communities of color, and our goal at the county is to give people second chances and remove barriers to employment and a productive and happy life.”
As drafted, the bill would require the department to identify relevant cases, notify prosecutors and, failing a challenge by the prosecution, automatically reduce or dismiss convictions pursuant to Proposition 64, which legalized marijuana.
Less than 5,000 people statewide have taken advantage of the legal changes and petitioned the courts to have their records changed.
Solis estimated that as many as 1 million Californians may qualify for re-sentencing under Proposition 64, which reduced the most common marijuana felonies to misdemeanors effective Nov. 9, 2016.
May 24, 2018
By Freddie Allen
NNPA Newswire
Energy jobs are growing faster than the national average and energy-related sectors are less diverse than the national workforce, according to the 2018 U.S. Energy and Employment Report (USEER).
“The nation’s energy sector employed 6.5 million Americans in 2017, up 133,000 jobs from the year prior,” a press release about the report noted. “This two percent growth rate exceeded the national average of 1.7 percent. Jobs in the energy sectors accounted for nearly 7 percent of all new jobs nationwide in 2017.”
National Association of State Energy Officials (NASEO) and the Energy Futures Initiative (EFI) released the report last week. NASEO is the only national non-profit association for the governor-designated energy officials from each of the 56 states and territories, according to the group’s website. EFI provides policymakers, industry leaders, NGOs with data driven, unbiased policy recommendations, “to advance a cleaner, safer, more affordable and more secure energy future.”
The report said that the companies surveyed anticipate roughly 6.2 percent employment growth for 2018.
Despite the positive growth trends, ethnic and racial minorities account for a smaller share of the workforce in the energy-related sectors than their corresponding national averages, the report said. Hispanic or Latino workers account for 10-19 percent of the labor force in energy-related sectors, compared to 17 percent in the overall economy. Black workers hold 5-9 percent of the jobs in energy-related sectors and account for 12 percent of the national workforce.
The USEER examines four sectors of the energy economy: Electric Power Generation and Fuels; Transmission, Distribution, and Storage; Energy Efficiency; and Motor Vehicles.
According to the report, Electric Power Generation covers all utility and non-utility employment across electric generating technologies including fossil fuels, nuclear, and renewable energy technologies.
“Energy Efficiency employers project the highest growth rate over 2018 (9 percent), followed by Electric Power Generation (8 percent); Motor Vehicles (almost 7 percent, including a 6 percent increase in manufacturing), Transmission, Distribution, and Storage (3 percent), and the Fuels sector (2 percent),” the report said.
According to the report, Electric Power Generation covers all utility and non-utility employment across electric generating technologies including fossil fuels, nuclear, and renewable energy technologies. Employment totals for any firms engaged in facility construction, turbine and other generation equipment manufacturing, as well as wholesale parts distribution of all electric generation technologies are also included in that metric, the report said.
The Electric Power Generation sector included 883,842 jobs in 2017, up nearly 2 percent from the previous year’s 867,434 workers, and employers report a projected 8 percent growth over 2018, the report said.
Blacks account for 9 percent of the electric power generation workforce (76,985) compared to White workers who hold 70 percent of the electric power generation jobs (615,696).
Fuels employment includes all work related to fuel extraction and mining, including petroleum refineries and firms that support coal mining, oil, and gas field machinery manufacturing, the report said. The Fuels sector employed 1,074,935 workers in 2017, compared to the previous year’s level of over 1,081,000 jobs, according to the report.
“Workers across both the forestry and agriculture industries that support fuel production with corn ethanol, biodiesels, and fuel wood are also included in the fuel employment estimates,” the report said.
Blacks workers account for 5 percent of the Fuels workforce (53,488) and Whites account for 84 percent of the Fuels workforce (903,045).
According to the USEER, Energy Efficiency employment covers both the production of energy-saving products and the provision of services that reduce end-use energy consumption.
“However, the USEER only captures employment with certified energy efficiency products or those installed according to ENERGY STAR guidelines, as well as advanced building materials such as insulation,” the report said.
African Americans account for 8 percent of the energy efficiency workforce (176,303) compared to White workers that hold 78 percent of the jobs in that sector (1,748,399).
The U.S. Motor Vehicles sector employed roughly 2.46 million Americans in 2017, increasing by nearly 29,000 employees over 2016. The Motor Vehicles jobs measure doesn’t include dealerships and retailers. According to the report, 39.7 percent of employment in that sector consists of manufacturing and 37.8 percent involves vehicle repair and maintenance. Nearly 20 percent of workers are involved in direct transport of motor vehicle parts and supplies via air, rail, water, or truck, as well as merchant wholesalers for motor vehicle parts and supplies, the report said.
Blacks hold 180,031 of the jobs in the Motor Vehicles sector accounting for 8 percent of the workforce compared to White workers who hold 1,832,239 of the jobs and 78 percent of the Motor Vehicles workforce.
The Electric Power Transmission, Distribution, and Storage sector encompasses the jobs associated with constructing, operating, and maintaining this infrastructure. It also includes workers associated with the entire network of power lines that transmit electricity from generating stations to customers as well as activities that support power and pipeline construction, fuel distribution and transport, and the manufacture of electrical transmission equipment, the USEER said. Like the Motor Vehicles sector, Black workers account for 8 percent of the Electric Power Transmission, Distribution, and Storage sector labor force and 97,084 of the jobs. Whites make up 71 percent of the workforce in that sector and hold 854,224 of the jobs.
“The USEER has proven to be an important tool for state energy officials, who will use this unique set of ‘all of the above’ energy jobs data to inform policy development and planning,” said David Terry, the executive director of the National Association of State Energy Officials (NASEO), in a press release about the report.
During a presentation about the report on Capitol Hill, Ernest J. Moniz, the former Energy Secretary under President Barack Obama, called the report a foundation for state governments, non-profit organizations and businesses to analyze the data and develop policy proposals.
Moniz, who is also the president and CEO of EFI, noted that although many industry leaders expressed concerns about hiring challenges in a very tight labor market, there were still opportunities to recruit and train people to fill jobs. The former energy secretary added that apprentice programs prosper when there are partnerships between state agencies and labor union groups; pre-apprenticeship programs can also aid in addressing some of the diversity issues found in the energy industry today.
“The competitiveness of this sector is important,” Moniz said. “We know that the definition of full employment does not mean that there aren’t people who are available, with appropriate training, to come in to the jobs.”