Guess what? Minority neighborhoods in Brooklyn are totally screwed when it comes to getting mortgages. Now, that everyone's recovered from this deep and mindboggling shock, here are the details, as per today's Daily News. The number of mortgages issued boroughwide dropped 18% in 2007, which was pretty consistent with the city. But:
in predominantly minority neighborhoods such as Brownsville and East New York, the number of mortgages issued plummeted by more than half. Some higher-income neighborhoods seemed immune to the mortgage crisis, as the number of loans continued to go up. "It really looks like a tale of two cities, in Brooklyn in particular," said Ingrid Ellen, co-director of the Furman Institute, which released the numbers.
Just for the record, the number of mortgages fell by 60% in Brownsville, 58% in Bushwick, 57% in East New York and 45% in East Flatbush. But what about all that sub-prime crap? Well, the reason for the drop is "the drying up of the subprime market and lending discrimination by banks reluctant to make loans - even to qualified buyers - in those neighborhoods." Worry not, gentrified Brooklyn. Mortgages were up 48% in Brooklyn Heights and Fort Greene and 11% in Williamsburg and Greenpoint and "were virtually unchanged" in Park Slope. Huh? They're not writing more mortgages in Park Freaking Slope? Order for pitchforks and torches are being called in as we type. Didn't they used to call a version of this redlining?
· Mortgages plunge by 50% in some Brooklyn minority communities [NYDN]
· Fewer Mortgages for Minority Communities [Brownstoner]