An anononymous poster asked me how we can provide equity in the mortgage lending business without affirmative action. The question is akin to asking how often one beats his wife, as it assumes guilt on the part of the lending industry. I don't think that there is widespread or systemic racial discrimination in mortgage lending. Here is why.
First, we have to understand why any individual investor or any lending institution would lend money to an individual. They do it to earn money through interest payments paid by people who do not default on their loans.
Now let us suppose that anonymous is correct. Let us say that there are a million creditworthy black people who have been denied loans simply because they are black.
This means that there are a million money making opportunities out there for investors. There are a million customers out there waiting for loans, but every single investor (including wealthy black investors) or lending institution has decided to forgo the opportunity to make money off of creditworthy black people because they all agree that it is more important to harm black people than it is to make money.
It is far more plausible that the people who are denied loans, whatever their color, are denied because they are credit risks. But some persist in believing that there is widespread racial discrimination in lending. I say that if you are willing to believe that lenders prefer harming blacks to making money, you might as well believe in the Tooth Fairy.