MEMPHIS, Tenn. – This is called modern redlining, practices that discriminate against a potential buyer based not on their income or credit history, but on their race.

Even when applicants qualify for a mortgage, the so-called American dream is still out of reach.

FOX13 has learned that the mortgage rate gap between black and white applicants is shocking.

In fact, black applicants are denied mortgages at a rate 84% higher than white applicants.

RELATED: FOX13 Discovers Undervalued Homes in Black Neighborhoods

This means home ownership is simply out of reach for many.

For many black candidates, the ultimate goal is to own a home.

But, it’s the process of having good credit, high scores, less debt and down payments that closes the door for some.

“It was stressful, very stressful,” contestant Desiree Washington said.

“The whole process had become very stressful and I wanted to get it over with,” contestant Jeffery Hampton said.

Washington and Hampton are two examples of black applicants with good jobs and decent credit. Washington said that between having a good job, a high 500 credit score, providing all the documents, sorting out his credit and dipping into his 401,000 for the down payment, the process was still grueling.

“The underwriting process of buying a home has got to be the most stressful part because it separates your whole life. They dig into every aspect of your home like everything,” Washington said.

Hampton lived in an apartment and nearly walked away from the deal. His credit score was close to 600, but it took him nine months to get a mortgage.

“I didn’t think I would be turned down that many times and I thought I had pretty good credit and found out I was being lied to about some things,” Hampton said.

Again, he has decent credit, never filed for bankruptcy, and had a substantial down payment.

According to the Home Mortgage Disclosure Act, nearly 20% of black applicants are denied a mortgage. This is the highest among all races. Currently, Black home ownership is up 44% from the recent low of 40%, but the highest level ever is 49.7% and that was in 2004.

The report shows that most black applicants are turned down because they have bad credit or too much debt.

“When they look at us, and the first thing they say is they raise the bar, and then they say ‘Well, he can’t get this because of this’, but the same person working the same job of a different color can achieve that,” Hampton said.

FOX13 sat down with real estate broker Travis Patterson. He had clients with OK credit and many with high scores, but they were always turned down.

“Fifteen years from now, how often do you see someone, there might be some discrimination or there might be some redlining? How often do you see that? All the time, every year,” Patterson said. .

He said the rejection rate for his black customers was at least 3 to 1, if not more.

For those customers, he said, the problem often includes income disparities, credit difficulties and loans from big banks.

“Their guidelines are totally different from those of a local lender or broker. I see people with good credit, good income and they don’t follow retail banking guidelines whatever that means and they get a turndown,” Patterson said.

According to HMDA, in 2020, Wells Fargo approved less than half of black homeowner refinance applications.

It’s the disparity.

* Wells Fargo approved 72% of white applicants versus 47% of black applicants.

“When someone applies for a mortgage, the system may approve it, but it may be information on a background check or a title search that may not show up on a credit report, so which results in customer rejection,” Patterson said.

He admits that many clients are unclear about the impact of income, student loans, car bills, credit card debt, payday loans and child support, even though they don’t include closing costs and how much you actually pay per month.

“Taxes, insurance and mortgage insurance; So the consumer will look at that and say, ‘I can afford $1,000 a month,’ but you get a lender and their $1,400 a month,” Patterson said.

He works directly with local lenders to help his clients who are often approved immediately.

“Local lenders have a bunch of programs that they have to use and get rid of a lot of money. So they can produce more mortgages to get more people into homes,” Patterson said.

Patterson said anyone who wants a home should have the ability to determine the key to qualifying for a mortgage based solely on their credit history, not their race.

“I deserve a house. I deserve a nice home. I deserve it like anyone else. Don’t rely on the color of my skin to explain why you didn’t,” Hampton said.

There are currently several resources to help home buyers.

There are FHA, VA, Fannie Mae, and Freddie Mac loans.

You can also consider using your 401-k or creating a savings app to help with the down payment and closing costs.

©2022 Imagicomm Memphis, Inc.

Swiss football international Karim Gazzetta dies aged 27 “after jumping from a building”

• Karim Gazzetta, former Swiss international, died in Bosnia and Herzegovina
• A 27-year-old man was found outside his home in Mostar, 45 miles from Sarajevo, today
• Gazzetta, who played for the Zrinjski team, committed suicide, according to local media
• The athlete was one of Switzerland’s most promising young players, but his career had been plagued by injuries and he missed half of the current season.

By Chris Pleasance for MailOnline

Published: 10:46 a.m. EST, November 21, 2022 | Updated: 10:51 a.m. EST, November 21, 2022

A former Swiss international footballer who was once one of the country’s most promising young stars was found dead in Bosnia and Herzegovina today.

Karim Gazzetta, 27, was found dead outside his home in the city of Mostar, 45 miles south of the capital Sarajevo, early this morning.

Police are investigating but Bosnian media report that Gazzetta – who was playing for local team Zrinjski at the time – had committed suicide by jumping from the building.

Karim Gazzetta, 27 – once one of Switzerland’s most promising young footballers – was found dead in the city of Mostar, Bosnia and Herzegovina

An attacking midfielder, Gazzetta was once considered a young talent in Swiss football after being capped four times for the national under-20 team in 2015.

He came through the academy of Servette FC – one of the most successful teams in the country – and spent several spells on loan before joining Stade Lausanne-Ouchy.

He then went to Neuchâtel Xamax, a team relegated from the Swiss top flight in 2012 after bankruptcy but found their way back to the top division in 2018.

However, injuries began to take a toll on his career and he was sold to Zrinjski over the summer as he suffered from issues that kept him out of action.

Gazzetta recovered but only made two appearances before re-injuring himself.

Gazzetta was capped four times for the Swiss Under-20 team in 2015 but injuries plagued his later career and he only played two games in the first half of that season.

His last appearance was in a cup match on October 19.

A spokesperson for the Swiss Football League said: “The Swiss Football League mourns the loss of former U20 international Karim Gazzetta, who died tragically in Bosnia.

“Most recently, at the age of 27, he was under contract with Bosnian league leaders Zrinjski Mostar.

The SFL sends its deepest condolences to all the family and loved ones, in particular to his younger brother Luca, who made three Challenge League appearances for Servette FC in the 2017/18 season and is currently playing in the Promotion League for the Stade Nyonnais. ‘

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Will Australia experience a recession?

What will happen to interest rates?

I have answers, and a new favorite economic theory: “F*** it” money.

Recently, the banks have begun to reconnect with journalists, as they had not done in the past three years.

Eating meals together was largely suspended during the early years of the COVID pandemic. Now here we go: with a lot to catch up on.

Over the past few months, I have rubbed shoulders with top bank executives, influential fund managers and renowned economists. These conversations have not been recorded or attributed to any individuals.

But I’ve condensed the main things I learned below.

Rumors fly

Markets operate on two things: greed and fear.

Much of the fear is centered on global banking giant Credit Suisse. The Swiss company’s share price has halved this year after internal unrest and a series of scandals.

That’s a generous assessment. The bank suffered big losses, hired private detectives to spy on employees, laundered money for a criminal organization in Bulgaria, faced lawsuits and paid a fine of more than half a billion dollars for facilitating corrupt loans in Mozambique.

New chairman Axel Lehmann says he will reform the company after a “horrible” year, but his name underscores the problem.

The shock bankruptcy of independent US company Lehman Brothers helped blow up the US economy in 2008, leading to the Global Financial Crisis, or GFC.

It was a hammer blow with immense consequences: the key index of our stock market took 12 years to regain its pre-GFC level.

But Lehman Brothers had overpaid for its assets and used accounting tricks to make its books safer than they were. When the crisis brought down the curtain, other banks were also exposed.

No one I spoke to claimed to have insider knowledge of Credit Suisse.

But they insisted that the conditions of 2008 – when other global institutions had similar problems over overvalued assets – were simply not there.

They don’t see GFC Mark II. But they see problems.

Big, big.

Global issues

The challenges of the global economy are as vast as the world is vast.

In the UK, the Bank of England predicts a recession that will continue from the end of this year and through 2023. It would be the longest recession since the GFC.

In the United States they are more optimistic, but maybe that’s just the weather.

Their central bank, the Federal Reserve or “Fed”, tries to slow down inflation.

But the way it does it – raising interest rates – has many other impacts. A Bloomberg Economics report indicates that a recession will hit within the next 12 months. Normally they give a percentage of the probability.

This figure is now 100%.

The bank’s figures agree with that view for both nations, although they disagree on depth or length.

And some of my conversations predate the September 23 announcement by (now former) British Prime Minister Liz Truss of an unfunded tax cut plan so savage it caused the value of a pound and cost her a job she had only had for a few months.

Recession in Australia?

What people I’ve talked to agree on is that our problems aren’t that bad.

Inflation is a problem, but unemployment is extremely low, which means that more people than everyone else have a salary that can help them get by.