Foreclosures in Black Community: Jesse Jackson Blames Big Banks

Foreclosures are affecting millions of Americans, and the black community has been hit especially hard by this crisis due to predatory lending practices. But, foreclosures are not only a threat to persons and families who own homes. Many churches are also suffering from the negative effects of the mortgage system collapse, with black churches in particular being threatened at an alarming rate. Jesse Jackson and other leaders are now leading an attack on the banks that took and paid back bail out funds, yet are still refusing to extend a similar helping hand to churches and homeowners needing a break. The Washington Post reports:

After being bailed out by the government, many banks have repaid the Treasury Department and continue to conduct business as usual instead of offering help to people in danger of losing their homes, Jackson said.

"It was determined that if Wall Street collapsed, the entire economy would sink into the ocean," Jackson said. "It was the right thing to bail them out. It was the wrong thing for them to not link to reinvesting in America and . . . restructuring loans for homes, churches and students."

The meeting was held at Ebenezer AME Church in Fort Washington, where the Rev. Grainger Browning spoke of the battle that the 10,000-member congregation recently waged to save its sanctuary.

The church had never missed a mortgage payment, but its lender suddenly demanded that it keep $750,000 in reserve, Browning said. "We had to raise $500,000 in three months," he said.

Browning said he was told by bank officials that they had no choice but to take the action because of the economy. But he said the bank "stepped back" and gave the church more time to deal with the situation after Jackson interceded.

But Jackson said other churches and individuals were not given second chances by the same institutions that were provided billions of dollars in the government bailout.

Jackson plans to protest banks that have been refusing to help its troubled mortgage holders, and to pressure Attorney General Eric Holder to go after banks that have violated predatory lending prevention laws.

In the Washington Post article, a church leader is quoted as saying: "The church is the only institution that people of color own, lock stock and barrel, and the banks know that... If they can take that away, we have a problem more serious than the economy." It would truly be a sad day in America if the souring economy could take away not only people's homes, but the very structures that provide nourishment for the soul.

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