The Color of Law: A Forgotten History of How Our Government Segregated America

by Richard Rothstein

In 2010, the Justice Department agreed that “[t]he more segregated a community of color is, the more likely it is that homeowners will face foreclosure because the lenders who peddled the most toxic loans targeted those communities.” Settling a lawsuit against the Countrywide mortgage company (later a subsidiary of the Bank of America), Secretary of Housing and Urban Development Shaun Donovan remarked that because of Countrywide’s and other lenders’ practices, “[f]rom Jamaica, Queens, New York, to Oakland, California, strong, middle-class African American neighborhoods saw nearly two decades of gains reversed in a matter of not years—but months.” For those dispossessed after foreclosures, there has been greater homelessness, more doubling up with relatives, and more apartment rental in less stable neighborhoods where poor and minority families are more tightly concentrated.