ABSTRACT
There has always been a dual credit market in the United States, and the proliferation of segregation contributed to this inequitable system. This made it easier both for the mainstream lending industry to avoid under-served consumers and for predatory and fringe lenders to target these very same borrowers. There has never been a time when the financial mainstream has been the primary source of credit for consumers of color. This paradigm must change if the market is to be healthy and strong. U.S. demographics are changing, with people of color making up an ever greater percentage of the population. The mainstream market must serve all consumers if it is to thrive. A new way forward may have already presented itself in a number of recent out-of-the-box products, underwriting tools and financial programs. The Fair Housing Act, and recent fair lending resolutions, may also force the industry to examine these solutions and adopt the meaningful change America needs to overhaul its financial system.
