Black MBA - Fall 2008 - (Page 40)

FEATURE Is the Middle Class Disappearing? Organizations for Reform Now. She is trying to help others in similar situations. Though Hicks was able to save her home, the foreclosure crisis is far from over for millions of Blacks, says Dedrick Muhammad of the Washington, D.C.-based Institute for Policy Studies. According to “Foreclosure: State of the Dream 2008,” a study co-authored by Muhammad, the total loss of wealth for people of color is estimated to be between $164 billion and $213 billion for subprime loans taken during the past eight years. This amount represents the greatest loss of wealth for people of color in modern U.S. history. Black borrowers will lose between $71 billion and $92 billion from subprime loans, while Latino borrowers will lose between $75 billion and $98 billion for the same period. “The subprime mortgage crisis has been devastating to the African-American community,” says George Andrews, president and founder of the Atlanta-based Capitol City Bank and Trust Co. “We are more vulnerable to any type of economic decline. As you know, the unemployment rate is higher in the African-American community than in other communities throughout America. Also, there are other socioeconomic challenges that affect us disproportionately, such as crime and health.” While Blacks benefited initially from subprime loans, the loans also came with problems that many borrowers now are experiencing. “It made it possible for us to buy houses that normally we would not have been able to buy,” Andrews says. “But a lot of folks – Black and white – had no business qualifying for a home loan with the type of mortgages extended to them. Now they are paying a very costly price for that poor planning.” Predatory practices flourish because mortgage brokers are unregulated, and the government has been silent on the subject, reports the Center for Responsible Lending. A total of 7.2 million families hold subprime mortgages, according to the Center’s data. Of the loans originated in 2005 and 2006, 1 in 5 will head into foreclosure. For the subprime loans made between 1998 and 2006, 2.2 million will face foreclosure. Muhammad says the mortgage problem is not specific to lower-income and lower-middle-income families. When you compare the number of Blacks with subprime mortgages to whites, Muhammad says, “you will see that upper-income Blacks had 54 percent of the high-cost subprime The Look of Success. At GM, the sophisticated styling and cutting-edge technology that goes into every single car, truck and SUV we make is a brilliant reflection of the people that help bring them to life. For information about GM and the incredible people that contribute to our success, visit us online at gm.com. If you like what you see and want to begin a career with one of the world’s most respected and recognized companies, go to generalmotors.jobs/2499 Love What You Do. GM has current opportunities in Global Finance Global Purchasing and Supply Chain Corporate Staffs GM Powertrain ©GM 2008.The policy of General Motors is to extend opportunities to qualified applicants and employees on an equal basis regardless of an individual’s age, race, color, sex, religion, national origin, disability, sexual orientation, gender identity/expression or veteran status. 40 BlackMBA • Fall 2008 • www.nbmbaa.org 384778_General.indd 1 6/6/08 7:18:01 PM http://www.gmfleet.com/30mpg http://www.nbmbaa.org

Table of Contents Feed for the Digital Edition of Black MBA - Fall 2008

Black MBA - Fall 2008 Contents Online From the Chairman From the President & CEO Up Front Who is Middle Class? Life and Times of the Middle Class Modern Times CEO to CEO: Why Didn’t I Think of That? Pass it Forward 30 Years of Conference NBMBAA Board of Directors Honorary Co-Chairs Conference History Speaker Showcase Industry Theatre NBMBAA Case Competition® Scholarship Winners NBMBAA Chapter Presidents Conference 2009: New Orleans The New Face of Recruitment Part-Time is the Right Time Across the Pond On Campus Board Bound MBAs for the USA Market Reality: Good Tapping Company Resources On the Move Employer Profiles Leading Bias-Free Mentoring Matters Faith in Corporate Circles Mideast Region Steps Up its Game Collegiate Chapters All in the Family How to… International Markets Are You Happy? Survive and Thrive Striking a Balance Advertiser Index In Focus

Black MBA - Fall 2008

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