The Color of Credit

Washington Post (06/23/08) P. A15; Steele Jr., Charles
Southern Christian Leadership Conference President and CEO Charles Steele Jr. writes that African Americans and Latinos are the primary victims of the subprime mortgage boom going bust, which he suggests will widen the wealth gap that already exists between whites and non-whites. He calls both lenders and the government to task for the debacle, stating: "Our government should protect every consumer—regardless of race, religion or credit score—from fraud and fly-by-night lenders. Policymakers should also promote a consumer credit market that helps people whose credit scores are less than stellar to bridge their way back to prime." Steele concludes that the damage to credit, widely considered a cornerstone of wealth creation, has been the worst byproduct of so many subprime mortgages going bad.