The State of Things

As conglomerate corporations peruse the planet on the hunt for big and little news organizations to add to their cache, and as the fate of journalistic integrity looks more and more like water running down the drain, can the alternative, grassroots news publications hold their own?

The alternative press, throughout the history of the United States, often represents the underrepresented and reports the issues that go unreported in the mainstream media, particularly for low-income racially diverse groups that do not fall into the majority stronghold. Because of the role the mainstream media does not play in the exposure of issues affecting the working poor and non-white population, the alternative press plays a vital role in the function of democracy, whereby information is used to help the citizen engage in the political discourse that affects his or her life.

Some of the first black newspapers provided informational access to freedom for southern slaves escaping to the north, and later in World War II the black press drew attention to the contradiction of fighting for democracy while supporting the undemocratic systems of segregation and inequality. The alternative press often serves an important function, even though from time to time it does not resonate beyond the community it represents. Yet, if even at a local level, alternative publications can spark civic engagement, then they are in part fulfilling their democratic obligation.

The problem, or the devil, as they say, may be in the details. As forms of discrimination become more complex and more bureaucratic, the object of attack becomes obscure. In last days of slavery the object was clear, as in the days of segregation, but today discrimination takes on different forms and cloaks itself in unstained fabric. The mainstream media does cover the issues that affect low-income minority communities, but at a surface-level. To illustrate this point, I will explore mainstream media coverage and attempt to penetrate the truth beneath the surface. I will also explore how the alternative press deals with these issues.

How does the alternative press hold up in a battle with an enemy it cannot see?




Wednesday, November 7, 2007

Dubious Lenders Robbing Imperiled Borrowers


Esoteric systems of discrimination come in various forms, one of them is mortgage loans.


About 46 percent of Hispanics and 55 percent of blacks who took out purchase mortgages in 2005 got higher-cost loans, compared with about 17 percent of whites and Asians, according to Federal Reserve data.

According to the New York Times, Nov.7, lenders' practices have been, "taking advantage of imperiled borrowers."

Dubious Fees Hit Borrowers in Foreclosures

Lenders and loan servicers often do not comply with even the most basic legal requirements, like correctly computing the amount a borrower owes on a foreclosed loan or providing proof of holding the mortgage note in question.

Testifying before Congress on Tuesday, Mark Zandi, the chief economist at Moody’sEconomy.com, estimated that two million families would lose their homes by the end of the current mortgage crisis.

Now that big lenders are originating fewer mortgages, servicing revenues make up a greater percentage of earnings. Because servicers typically keep late fees and certain other charges assessed on delinquent or defaulted loans, “a borrower’s default can present a servicer with an opportunity for additional profit,” Ms. Porter said.

The amounts can be significant. Late fees accounted for 11.5 percent of servicing revenues in 2006 at Ocwen Financial, a big servicing company. At Countrywide, $285 million came from late fees last year, up 20 percent from 2005. Late fees accounted for 7.5 percent of Countrywide’s servicing revenue last year.

But these are not the only charges borrowers face. Others include $145 in something called “demand fees,” $137 in overnight delivery fees, fax fees of $50 and payoff statement charges of $60. Property inspection fees can be levied every month or so, and fees can be imposed every two months to cover assessments of a home’s worth.


Since the Civil Rights Act of 1964, the real estate and loan industry continuously displayed discriminatory practices against black and Hispanic families. The banking industry disproportionately denied black families mortgage loans, inhibiting opportunities for asset accumulation, which through history has proved a very beneficial factor in financial security for white families in America down generational lines. As we can see, things haven't changed much.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)