“The Fair Lending Coalition: Organizing Access to Capital in Milwaukee.”
By Gregory D. Squires and Dan Willett
In this case study, Squires and Willet wrote about abuses that existed in fair lending practices in the city of Milwaukee. The goal of fair lending is to offer the same money borrowing opportunities to minorities that exist for Whites. The authors cited an alarming Atlanta Journal/Constitution statistic about lending abuses: “…in 1989…Blacks were rejected twice as often as Whites in their mortgage loan applications…” In reaction to the unfair lending practices a community network named the “Coalition” sought to effect positive reforms. The coalition was composed of “local churches, labor unions, civil rights organizations, and community-based groups.” The University of Wisconsin-Milwaukee also participated.
As is often the case with any reform, activists had to contend with inertia and vested interests. The Coalition proposed a number of fixes that went no where. At this point various community organizers recognized the need for an independent entity to act on the proposed changes and bring in federal economic incentives. This organization operated from the 1977 Community Reinvestment Act (CRA). A number of CRA rules enforced fair lending practices such as full disclosure of lending activities and the opportunities for organizations such as the Coalition to received records.
The university was key in acquiring CRA records, analyzing data, and reporting results from those studies. The individual records could not be accessed due to privacy concerns requiring the use of aggregated data that was still useful for spotting trends of abuse. Evidence of unfair lending activities allowed community activists to meet with lenders and correct any problem. This process led to ten cases that resulted in over 100 million dollars in new loans. Those loans, in turn, were key to revitalizing poorer areas of Milwaukee.
One important person in the process was the mayor who was not satisfied with the status quo. The media and volunteers were also vital to the process. Also, the University was integral to the changes in lending practices in the community. Moreover, the experience led to several master’s theses, one doctoral dissertation, a book chapter, and several journal articles. The process also, ironically, benefited the lenders by opening up new streams of capital and clients for them. The authors suggested the major reason for their success was cooperation between various organizations and key people within the community and even the federal government.
What was missing from the narrative was the planning and organizing aspect that led to mobilizing a wide range of people and organizations to change fair lending practices. What were the stages and were there any obstacles along the way. Moreover, it would have been interesting to note if there were any opponents and the tactics they used. Overall, however, the selection was very interesting.
RESOURCES
Squires, Gregory D., and Dan Willett. 1997. “The Fair Lending Coalition: Organizing Access to Capital in Milwaukee.” in Building Community: Social Science in Action, edited by Philip Nyden, Anne Figert, Mark Shibley, and Darryl Burrows. Thousand Oaks, California: Pine Forge Press.
