Federal Housing Administration Quotes
This quotation shows how the government has been encouraging home ownership for years. In 1936, a 20 year fixed interest mortgage was considered a great step forward in providing mortgages for average Americans. As was only a 20 percent down payment in cash. Consider her use of the word “safe”. The New Deal in many ways was conservative—certainly much more so than the banking and home mortgage industries of the early years of the millennium. Mrs. Roosevelt would not consider a down payment of less than 20% safe for the family of safe for the mortgage lender. In the meltdown of 2008, there were many mortgages being written for Zero down payment.
The Federal Housing Authority actually developed policies that literally prohibited private mortgage lenders from writing mortgages for black neighborhoods and to not lend to blacks who wanted to buy houses in predominantly white neighborhoods. The Nuremburg Laws were the laws passed by Nazi Germany to make prohibit Jews from engaging in most civil activities.
There was rampant segregation and discrimination in housing throughout the country and not only in the South. However, the doctrine then was this was for the states to control. However, the Federal Agency that was established to sell mortgage insurance to enable more Americans to buy homes, was also overtly discriminating.
FHA, in contrast to this administrator’s statement, was a major factor in increasing and maintaining housing discrimination in America. See {637259}, {637269} and {637260} for FHA official manuals which contradict Foley’s denial. He justified the inconsistency by pointing to the words “per se”. The agency never literally told FHA staff to discriminate he claimed. However, most people reading the two examples given above, would get the message that FHA was opposed to inter-racial, non-segregated housing.
“FHA” was the Federal Housing Administration. This federal agency de facto controlled the vast majority of the mortgage loans in America. The agency, under the control of racists, redlined black neighborhoods from obtaining mortgages and even worse discouraged mortgage loans even in affluent white areas if it was an affluent Negro family that wanted to buy a house there. {637259} and {637260} are quotations which are examples of FHA racist policies.
